TIAA Retirement Products and Services Overview

TIAA offers a range of retirement products and services designed to help individuals save for their future. TIAA's core business is providing retirement plans for employees of non-profit organizations, but they also offer individual retirement accounts and other investment products.

TIAA's flagship retirement product is the TIAA Traditional Annuity, which provides a guaranteed minimum interest rate and the potential for higher returns. This product is designed for long-term investors who want to ensure a steady income in retirement.

TIAA's investment products are managed by a team of experienced investment professionals who use a range of strategies to help investors meet their goals. The company's investment options include stocks, bonds, mutual funds, and exchange-traded funds.

TIAA's retirement services include financial planning and advice, investment management, and retirement income solutions. These services are designed to help individuals create a sustainable income stream in retirement and achieve their long-term financial goals.

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TIAA offers a variety of retirement products to help you plan for the future. Among the most popular are their retirement plans, which are available to workers in the nonprofit sector.

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TIAA-CREF Traditional Plan is a defined-contribution plan like a 401(k), but with some significant differences. It can be funded with either fixed or variable annuities, and its emphasis is on providing lifetime income at retirement rather than tax-exempt wealth accumulation.

The plan has eight different variable CREF structures to choose from, including the Stock Account, Growth Account, and Bond Market Account. The funds are annuitized to provide guaranteed lifetime annual income.

TIAA plans aren't as concerned with the amount of money saved, which is intended to supplement other retirement income. They look to future annual income generated by the accumulated money.

Here are the eight different variable CREF structures available in the TIAA-CREF Traditional Plan:

TIAA also offers traditional and Roth IRAs, which provide tax breaks on deposits and withdrawals, respectively. You can roll over other retirement accounts into a new or existing TIAA IRA.

TIAA Personal Annuities are available, which offer both fixed and variable annuities. A fixed annuity grows at a slow but steady rate, while a variable annuity offers a chance for greater growth through investments.

You can invest or withdraw funds at any time, and both you and your spouse can receive payments in retirement. At retirement, you can choose to generate a set amount of annual lifetime income or take the money in a lump-sum payment.

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The TIAA Secure Income Account offers a range of benefits and features that can help you secure your retirement income. This fixed annuity product provides a pension-like guarantee of lifetime income, which can give you peace of mind and financial security.

You can choose to have the Secure Income Account within a managed account or a target date fund, giving you flexibility and control over your investments. The account is issued by Teachers Insurance and Annuity Association of America (TIAA), a company with a long history of serving the financial needs of those working in nonprofit fields.

TIAA has a strong financial foundation, with total assets of $350.4 billion as of September 30, 2024. This financial strength is reflected in its ratings from leading insurance company rating agencies, including A.M. Best (A++), Fitch (AAA), and Standard & Poor’s (AA+).

Here are some key benefits of the TIAA Secure Income Account:

TIAA may also share profits with Secure Income Account owners through declared additional amounts of interest during accumulation, higher initial annuity income, and further increases in annuity income benefits during retirement. These additional amounts are not guaranteed beyond the period for which they were declared.

TIAA has made significant investments in various sectors, including real estate and financial services. In 2012, the company bought Festival Place, a shopping center in Basingstoke, England, for £280 million.

TIAA also expanded its presence in the US through strategic acquisitions. In 2013, it purchased a 50% stake in the Grand Canal Shoppes, including the Shoppes at the Palazzo, in Las Vegas, Nevada, for net proceeds of US$410 million.

TIAA's growth strategy has also involved acquiring other financial institutions. In 2016, it announced a deal to buy EverBank Financial Corp. for $2.5 billion in cash, and the acquisition was completed in June 2017.

Here's a brief summary of TIAA's notable investments:

TIAA has made significant investments in various sectors to diversify its portfolio. TIAA bought Festival Place, a shopping center in Basingstoke, England for £280 million in 2012.

Diversification is key to minimizing risk in investments. This is evident in TIAA's purchase of a 50% stake in the Grand Canal Shoppes, including the Shoppes at the Palazzo, in Las Vegas, Nevada, for net proceeds of US$410 million in 2013.

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In 2014, TIAA announced its acquisition of Nuveen Investments, a deal valued at $6.25 billion. This strategic move further expanded TIAA's investment portfolio.

TIAA also ventured into the banking sector by acquiring EverBank Financial Corp. for $2.5 billion in cash in 2016. The combined bank's legal entity name is TIAA, FSB.

Here's a summary of TIAA's notable investments:

TIAA's investments demonstrate its commitment to diversification and strategic growth.

Steady growth in any market is a reassuring prospect for investors. Your retirement savings are protected and guaranteed to increase every single day – even in the most volatile markets.

This is made possible by the diversified investment strategies employed by TIAA, as seen in their acquisition of Nuveen Investments in 2014 for $6.25 billion. This strategic move helped to expand their investment portfolio and provide a steady stream of returns.

TIAA's commitment to steady growth is evident in their business dealings, such as the purchase of Festival Place, a shopping center in Basingstoke, England for £280 million in 2012. This investment demonstrates their ability to navigate different markets and achieve steady growth.

Here are some key facts about TIAA's investment strategies:

These investments have helped TIAA achieve steady growth and provide a secure future for their investors.

TIAA offers a variety of retirement plans, including the Traditional Individual Retirement Account (IRA) and the Roth IRA.

To be eligible for a TIAA Traditional IRA, you must be under 70 1/2 years old, have earned income, and have a valid Social Security number.

The income limits for deducting contributions to a TIAA Traditional IRA are $65,000 for single filers and $109,000 for joint filers.

You can contribute up to $6,000 per year to a TIAA Traditional IRA, or $7,000 if you are 50 or older.

The eligibility requirements for a TIAA Roth IRA are the same as those for a Traditional IRA, but with one key difference: you must have earned income to contribute to a Roth IRA, but you don't have to take required minimum distributions.

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TIAA was stripped of its tax-exempt status in the Taxpayer Relief Act of 1997, which means it is no longer a nonprofit organization, but rather a not-for-profit company with a charter to operate without profit.

TIAA has made significant acquisitions in the past decade, including the purchase of Nuveen Investments for $6.25 billion in 2014, and the acquisition of EverBank Financial Corp. for $2.5 billion in 2017.

TIAA's ownership structure is unique, being owned by a not-for-profit company, and it has a history of innovation in the financial industry, having been one of the first to utilize a broad portfolio of international stocks in 1979.

Here is a list of some of TIAA's notable acquisitions:

TIAA is not a nonprofit organization, despite being owned by a not-for-profit company and having a charter to operate without profit.

The Taxpayer Relief Act of 1997 stripped TIAA of its tax-exempt status, which led to its current structure.

TIAA's ownership by a not-for-profit company is a result of its history, which dates back to the Carnegie Foundation for the Advancement of Teaching.

The Carnegie Foundation for the Advancement of Teaching was established in 1905, and TIAA was created as a result of its efforts to provide financial security to teachers.

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TIAA's current status as a not-for-profit company is a result of its charter, which requires it to operate without profit.

Here are some key facts about TIAA's ownership and structure:

TIAA's structure and ownership are a result of its history and the laws that govern its operations.

The Taxpayer Relief Act of 1997 had a significant impact on TIAA's status, stripping it of its tax-exempt status and leading to its current structure.

TIAA's current leadership, including CEO Thasunda Brown Duckett, has played a key role in shaping its future and navigating its complex structure.

As a result of its not-for-profit status, TIAA is able to focus on serving its members and providing financial security to teachers and other employees.

TIAA has made some significant acquisitions to grow its portfolio and product offerings in the past decade. These deals have helped the company expand its reach and services.

In 2014, TIAA acquired Nuveen Investments for $6.25 billion, a move that significantly boosted its investment strategy.

Here are some key acquisitions made by TIAA:

TIAA's acquisitions have allowed it to offer a wider range of services to its customers.

TIAA Secure Income Account offers a pension-like income stream, providing a predictable and stable source of income in retirement.

Participants can benefit from TIAA's financial strength, with total assets of $350.4 billion as of September 30, 2024.

TIAA is a member of one of only three insurance groups in the United States to hold the highest rating available from three leading insurance company rating agencies: A.M. Best, Fitch, and Standard & Poor's.

This financial strength gives participants confidence in TIAA's ability to meet their obligations.

TIAA may share profits with TIAA Secure Income Account owners through declared additional amounts of interest during accumulation, higher initial annuity income, and through further increases in annuity income benefits during retirement.

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TIAA's company operations are built on a rich history of serving educators and other professionals. Founded in 1918, TIAA has grown into one of the largest financial services organizations in the world.

TIAA operates through several business segments, including Asset Management, Retirement Services, and Investment Management. These segments work together to provide a wide range of financial products and services to clients.

TIAA's Asset Management business offers investment products and services to institutional clients, such as pension funds and endowments. This business has over $1 trillion in assets under management.

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Secure Account Access is crucial for protecting your company's sensitive information. We implement two-factor authentication to ensure only authorized personnel can access our systems.

Our team regularly reviews and updates our password policies to ensure they meet the latest security standards.

Strong passwords with a mix of uppercase and lowercase letters, numbers, and special characters are required for all user accounts.

We use a secure password manager to store and generate unique, complex passwords for each employee.

Our system automatically locks out accounts after three failed login attempts to prevent brute-force attacks.

Users are required to change their passwords every 90 days to minimize the risk of password compromise.

We encourage employees to enable password-protected screensavers to prevent unauthorized access to their computers.

Our IT team is available 24/7 to assist with account access issues and provide guidance on secure account practices.

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TIAA's financial consultants have minimum performance standards and goals to ensure a consistent participant experience and meet baseline expectations.

These standards are in place to guarantee a certain level of quality in their services.

TIAA's top executives, including CEO Duckett, receive a significant portion of their pay based on the company's financial performance.

In fact, 45% of Duckett's pay last year was tied to the firm's financial performance.

TIAA's CEO, Duckett, received $18.2 million in pay last year, with more than 10 of its peer companies' CEOs earning less.

This is despite TIAA operating without a profit.

TIAA's in-house products, such as its real estate offering, have not always performed well for clients.

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For example, the TIAA real estate offering was down 13.6% last year.

In contrast, some external real estate funds have done better, such as the Cohen & Steers fund, which is up 9.35% for the past 12 months.

Here's a rough idea of how these returns affect investors:

TIAA has committed to achieving net zero emissions by 2050 for its General Account.

In 2022, the company's climate report, "Ensuring Our Future", emphasized that climate risk is viewed as an investment risk.

TIAA is one of the world's largest fossil fuel investors, with at least $78 billion invested in coal, oil, and gas industries.

This significant investment in fossil fuels has led to criticism from various groups, including nearly 300 TIAA clients who filed a complaint with the UN-supported Principles for Responsible Investment initiative (PRI) in October 2022.

TIAA has $6.7 billion invested in companies that mine, transport, and burn coal for energy, making it the fifth largest holder of coal bonds worldwide.

The company's fossil fuel investments have contributed to the climate crisis, according to a group of TIAA clients and university student activists who published their response to TIAA sponsoring the Big 10 in March 2024.

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