In a similar situation here. Currently, I'm almost 90 days out of TIAA Traditional (earning about 4%) and sitting in a money fund. My plan is to check out the "new money" rate (guaranteed for one year) when March 1st arrives, which will still leave time to move back into the old vintages before 120 days are up. If the new money rate is better than the revised March 1st composite rate on the vintages the funds came out of, my plan is to wait past 120 days and then move the funds back into the new money rate. Otherwise, I will move the money market funds back before 120 days. Personally, I have no plans to annuitize these funds and if I did, it would not be for a decade or more. So I am not concerned about losing any loyalty bonus. Besides, getting an extra percent or so for many years by rebucketing can more than make up for any loss of loyalty bonus if annuitization is really desired down the road.First time posting here. I'm looking for advice from TIAA veterans concerning the reinvestment timing of a TIAA SRA sum now in VMFXX into TIAA Traditional. I have been taking advantage of the 120-day "sit-out" period on Traditional to increase the interest rate payouts on my TIAA SRA funds. I did this once last year to increase the combined rate from the 3-4% range (my prior vintages went back many years) to 5.25%. I am now near the end of a second 120-day period and am wondering about proper timing of reinvestment back into TIAA Traditional. I can do it this month and and capture the current 5.25% rate, but on March 1 TIAA will reset all vintages. Question: should I jump back in this month and risk a lower interest rate on the March 1 vintage assignments or would it be better to wait until after March 1 and capture the current interest rate offered as of March 1? My VMFXX is yielding about 5.3% and not likely to move much until the Fed starts cutting, so waiting through February does not really penalize me.
Many thanks in advance.
Statistics: Posted by JayB — Fri Feb 02, 2024 12:58 am — Replies 5 — Views 428