The Teachers Insurance And Annuity Association: What You Need to Know

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What is TIAA?

TIAA, originally known as the Teachers Insurance and Annuity Association of America, is a financial services organization that offers a range of financial products and services. Primarily, TIAA caters to the needs of individuals working in the academic, research, medical, cultural, and government fields.

Teachers Insurance And Annuity Association

What Does TIAA Stand For?

The acronym TIAA stands for Teachers Insurance and Annuity Association. It reflects the organization’s long-standing focus on providing retirement services and insurance to those in the academic and research sectors.

What Is Tiaa

Pros and Cons of TIAA Immediate, Fixed, and Variable Annuities

Immediate Annuities

Pros:

Cons:

  • Once invested, the principal is typically locked in without access to the lump sum.

Fixed Annuities

Pros:

  • Offers a fixed rate of return, providing stability and predictability.
  • Lower risk compared to variable annuities.

Cons:

  • Fixed returns might be lower than those potentially available from variable annuities.
  • Inflation may erode the purchasing power of the fixed payments over time.

Variable Annuities

Pros:

  • Potential for higher returns linked to the performance of underlying investment options.
  • Offers more control over investment choices.

Cons:

  • Higher risk due to exposure to market fluctuations.
  • More complex product with potentially higher fees.

Limitations of TIAA Annuities

  • Lack of Fixed Index Annuities: TIAA does not offer fixed index annuities, which can provide a balance between fixed and variable annuities, offering a level of income protection with potential for growth.
  • Not the Best Guaranteed Lifetime Income Rider: While TIAA offers guaranteed lifetime income options, they may not be the best in the market compared to other providers. This factor should be considered when evaluating annuity options.
What Does Tiaa Do

Conclusion

TIAA provides a range of annuity products, each with its own set of pros and cons. When considering TIAA’s immediate, fixed, and variable annuities, it’s important to assess your financial goals, risk tolerance, and the specifics of each product. The absence of fixed index annuities and potentially less competitive lifetime income riders are notable limitations. Understanding these aspects can guide you in making a well-informed decision for your retirement planning. Contact us today for a free quote.

Teachers Insurance And Annuity Association (Tiaa)

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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