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GaryH

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  1. The site "cdrates.bankaholic.com" lists interest rates, it appears you can get 3.85% at a bank in Troy, MI called Flagstar Bank. I understand those CD's can also be issued as IRA-CD's, with allowed 90-24 transfer from a 403B to that kind of account. I asked the TIAA rep over the phone to explain how they were guaranteeing my 403B deposits (I plan to leave the deposits with TIAA, I agree they are excellent). The rep will be mailing documentation, which I will read carefully. I just want to know chapter-and-verse of how these funds that hold "guaranteed interest" 403B deposits are protecting those investments, I want the specific facts for these guarantees. [/email] quote name='sschullo' date='Feb 7 2009, 10:19 AM' post='24638'] Hi Gary, I have a large sum of my 403b money with the TIAA traditional annuity. Its earning 3% and am happy with that at the moment. TIAA CREF has over 400 billion in assets and for me, I am perfectly comfortable that its safe. TIAA CREF has not been asking the feds for help because they never had the reckless management behavior that many of those other financial institutions had. As Scotty said, if you feel comfortable with an FDIC account, go for it, but be cautious of anybody, even FDIC bonds, that claim to give you high rate without looking at the fine print. I also would like to know which bank provides a 4% bond. Hope this helps, Steve
  2. Various mutual funds, such as TIAA, report substantial additional investments to insure their interest-bearing funds. Be great to know how that is actually structured. Is there a reader of this site who can document how those funds are secured? In THEORY, these funds (which pay 3-5%) are claimed to be as solid as an FDIC-insured IRA's at a bank, but the companies are not very definitive on the basis of that insurance. This information would be helpful for this 403-investors who might consider moving funds to a CD at bank that pays 4%, and which carries substantial FDIC-protection. IF there is expert with actual knowledge of that, the information would be much appreciated.
  3. Steve, I am NOT predicting economic armageddon, only considering that as a possibility. I'm in my mid-sixties, will be retiring in 5 years, and will need the income from my IRA-plans. I could move a substantial amount of my portfolio to IRA accounts at banks (typically 3.5% CD's) that carry FDIC insurance. And why not? I have more faith in the FDIC funds than in the Morningstar ratings, although that might just show my ignorance! Garry
  4. I must conclude that most people only see the next couple of years as another "classic" recession, with the usual recovery and then upward march of the market. As long as that's true, not to worry. But if it's MORE severe than that, and bond funds start to break....naah, it's not the 30's, we've built protections for long-term investors.
  5. I know that CD's with banks are paying 2.5-4%. but at least they are FDIC-insured. Given prospects for US economy in the next several years, I would think any prudent investor would put a portion (30% perhaps more?) of their retirement holdings in those kinds of insured deposits.
  6. This board might consider adding an area for description of how to proceed safely. For example, the yields are very conservative (3% today, 2% next week?) for FDIC-insured IRA's at banks..but heck, even a "safe" 403b-interesting-bearing account established for a school district could get into trouble! The economy is going to very rocky for a couple of years, this board can include prudent advice to investors among materials that are posted.
  7. Since many of us have a large share of our life savings and retirement security in 403 and 457 accounts, fund protection is important, especially with the uncertainties shown by many large brokerage firms this year. We should work to extend FIDC-protection to certain accounts (guaranteed interest only, for sure). This provides the same security as if these funds were in bank accounts. For many of us, these funds do constitute our life savings. What avenues are available now to rollover 403 and 457 funds to FIDC-protection within bank deposits?
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