Early in November 2007, I started the process to transfer my before-tax funds/assets from TIAA-CREF to other financial institution. When I started the process, a consultant sent me partially filled out forms for me to complete and send them back to TIAA. On completion, when I sent those forms, only 1/3 of the money was transferred from what I had discussed with the consultant. Since then I am having one problem or the other to get the rest of the funds transferred.
The major problem is that once documents are sent to TIAA the follow up is done by someone else. It is impossible to get the same person with whom I talked on the previous occasion. Every time you get a new consultant, and every time you have to relate your story, and every time the answer comes different. Since the time I started the process, I have talked with four different consultants. Each of them suggested me to send a separate set of forms and guided (misguided) me differently. I have submitted at least three sets of forms but have not gotten the funds transferred. At this time I am confused what to do with all the different messages I have gotten from TIAA. Apparently, most of the consultants do not know their jobs well.
This is not the first time I am having problem with TIAA. Few years ago, I sent in a check for my Roth IRA. The check was cashed but was not deposited. After several months I realized this fact and contacted TIAA. TIAA could not find where the deposited money was gone. I have to provide TIAA proof that it had my money. Only then the money was deposited in my IRA.
I am concerned not only for myself but all the people and particularly the retired people who invested in TIAA. May be TIAA was a sound institution at one time, but from my experiences I would not recommend TIAA to any person.

Here’s a quick look at some articles that caught my eye over the past week:

JLP talked about retirement risks.
Jim talked about when frugality is a fault.
Flexo is having trouble with his TIAA-CREF SEP-IRA.
FMF talked about the best place to sa…

Since retiring a few years ago we have had major problems with almost everything we’ve done with TIAA-Cref. Several mistakes were made by them when we had to transfer funds to IRAs within their family of funds. Fortunately we have a local representative who was on top of it and untangled the mess. Although I like their website, changes that we are suppose to be able to make online often do not go through and require a couple of phone calls to finally get done.

I have not been comparing investment results to other fund families because the thought of moving all that money seems like a big headache, but we are now talking to a financial advisor so this is something that we will be addressing (along with our wills, estate plans, etc.).

I have to say that we have been pleased over the long term with the growth of our retirement with them so almost hate to make any changes. But we are living on that money now and have to make sure it will last at least as long as we do.

I’m with you there. TIAA-CREF used to be a good company, but management changed a couple of years ago and decided to re-focus the company’s business model. Unfortunatly the impact of this reorientation appears to be 1) higher account fees, in some cases doubled from .5 to 1.0 percent per year and 2) poorer quality service, like you’ve just mentioned.

Not only that, the results of some of thier funds, such as their aggressive growth and stock funds, had greatly UNDERPERFORMED the S&P 500.

Best,

James

If you end up switching you may wanna check out T. Rowe Price. Their Capital Appreciation fund is top notch (20 years in existence with only one down year in 1990) and both their energy and telcom sector funds are good.

T. Rowe does have its downsides…its top-rated Small Cap fund is close to new investors and they could be stronger in both international and Growth. My experience is that the good outweighs the bad.