Hi all! I don't post much, but lurk lots. It feels good to get back on the discussion board. Can some of you weigh in on these 2 questions?
Our newly-minted DIL with her newly-minted doctorate has investment choices at the college that just hired her. They are: MetLife, Valic, and TIAA-CREF. I'm just checking, although it kinda looks like a no-brainer at this point. In addition, the college has a contribution matching plan up to 9%. She is 27.
Which company would you pick? And then what sector or funds within the company would you go for?
Thanks in advance. What a great site this is with the tremendous work by David, Chip, Accipiter and many others.
best, hawk
Comments
Edited to add: All of the service I've gotten through TIAA-CREF has been superb.
A quick screening produced these choices...notice that TIAA-CREF has multiple offerig of the same investment (lots of duplication). Good Luck and con"grad"ulations!
Also, aren't there student loan forgiveness programs out there for those that choose education as a profession?
From the days of the depths of the Financial Crisis, for which no one has yet gone to jail:
http://chronicle.com/article/Is-TIAA-CREF-Safe-/44807
...But Oregon is using TIAA-CREF for its 529 Plan.
http://www.savingforcollege.com/529_news/?page=plan_news&plan_news_id=1004
This might only be marginally helpful, but take a look.
9%, wow. good for her.
Don't know anything about Valic, but no contest between Met & TIAA-CREF. Go with TIAA-CREF.
Regards- OJ
I'm guessing, but at 27 her chances are her student debt may be minimally limited to undergrad. Let me second the 9% is amazing comment, though. Especially given how tight money can be at universities and colleges. Great deal.
Regards,
Ted
http://quicktake.morningstar.com/fundfamily/valic/0C00001VXP/fund-list.aspx
David
Is that only available as the variable annuity or in some sort of mutual fund format as well?
David
DS is being, well, generous, or something; from this graph, it looks rather more like ~6y to get back to zero. So it depends on what his 'disastrous' means.
https://www.tiaa-cref.org/public/tcfpi/Investment/Profile?symbol=41091375
Talk about investor returns and behaviors. Who would not have bailed, not knowing what the future held, only imaging the worst?
You would have had to keep in mind that this downward dive was putting you back only to where you were 05/6/7.
But for most, this looks like a classic whiplash and I suspect a lot of investors got caught.
David
It holds considerable interest, I suggest, as it sets you apart from most other investors on earth, including in this forum. 40% plunge and 5-6y back to whole? I would say your behavior is extraordinary. Adding monthly.
I would like to say I would've done the same. Certainly I have done similarly since 08 in a range of investments, buying greedily and staying in equities, but this would have been a taxing experience. A lesson here in perseverance.
A few years back that institution negotiated a good array of funds from other fund companies generally with the lowest ER each offered. My current employer offers TIAA, but only the usual choices, and I haven't chosen to play. TIAA apparently will yield to pressure if the institution is big enough, but I have no idea how this was accomplished.
I agree with those recommending the lowest cost index funds she can find. While bond funds may make one feel a bit better in the crashes, I don't see the point at 27, regardless of experts' recommendations. Start balancing 15 years (or 10) before retirement by changing the choices in your automatic investments.
Anyway I have asked her to read all the responses including of course yours. It is interesting that you mention the equity index and the mid cap as those also caught my eye with particular attention to the ER and the 10 year returns. If she splits equally between the 2, her ER will average out about .5 - could be better but its not horrible.
I had forgotten how long Bob has been a pillar of support for both MFO and FundAlarm until I happened to read the "What are these Numbers?" post a few days ago, which contains a historic link to a FundAlarm page from April 2005.
There is Bob, then and now one of the most helpful folks to ever post on MFO or FundAlarm. Some other names, still with us, from the past: Maurice, Ted, David Snowball (of course!), VintageFreak, Mark, rono, and Falcon (now Accipiter). Congrats to all on longevity and minimal, if any, evidence of senility.
BTW, the 457 offerings thru her college are TIAA-CREF, VALIC, and ING. Well, at least ING has the old Lex Corp Leaders which might hold some interest, although why a dinosaur with 0% turnover should be charging .5 ER is, well, we know why they're charging it... I think it's back to mutual funds in the 403(b).