Question

n this unit we learned to conduct a retirement needs analysis taking into account various assumptions such as inflation rate, retirement period, life expectancy, income sources, and other variables, and determine financial needs during the accumulation and retirement period. Lets extend the discussion by examining the practical implications of these concepts. TIAA-CREF has an excellent site that provides a consider- able amount of information on retirement planning and retirement options. Visit the site at tiaa-cref.org click on the What We Offer tab, and examine the information in the Retirement section.

Answer 1

The retirement section on the TIAA website offers retirement plan and strategies that one can take at any point of time in their lives. There are broadly three stages

1.Just Starting Out - Here you need to understand three things

ARE YOU GETTING YOUR MATCH?

If your employer plan offers matching contributions, learn how much to contribute to receive the match. If you’re a TIAA participant, it’s easy to double check your contributions.

SAVINGS CAN BE AUTOMATIC

Retirement savings can be automated by increasing your percentage 1 -2 % each year when you get a raise or bonus.

UNDERSTAND YOUR PORTFOLIO

You may not realize it, but you probably already have a financial portfolio. So, what is it?

2. Mid Career -

UNDERSTAND YOUR NEEDS

It’s important to review your goals.

SAVING FOR COLLEGE

Starting to save now can add up over the years. There are different college plans to help out.

KNOW HOW MUCH YOU CAN CONTRIBUTE

50 or older? Each year you can add $6,000 more to your retirement plan and an extra $1,000 to your IRA.

3. Late Career -

Replacing your salary

Learn how you can design an income plan with a balance of guaranteed income* and growth potential.

Choosing your options

Explore the different income options available with your TIAA retirement plan

Getting income

See how much lifetime income you can get from your retirement savings.

Over and above these plans there are some other plans as well like TIAA retirement annuities. Goal based investing options are also available.