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toddnmd

Troweprice/diversifiend Invest/tiaa Cref

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I was wondering--what is the general opinion of T Rowe Price for a 403(b)? I got out of VALIC several years ago--I have done much better with Price.

 

Also, my wife just started a new job and has a choice of TIAA-CREF or Diversified Investment Advisors. It seems like people here like TIAA-CREF (at least for low-cost variable annuities). What about Diversified Investment Advisors--at least they have actual mutual funds, as well as variable annuities.

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Guest PatPAWI

TIAA-CREF is a great company with some of the lowest fees possible. Definately a great place to have a 403(b). Mine and my wife's are there as well. As far as Diversified Investment Advisors, I am unsure. Their website is not helpful to find out what they actually invest in. Get their fee structure in writing, ie. what they charge over the underlying funds. That is important. I doubt that management will add anything to justify additional fees. Much literature is out there supporting this. As for T. Rowe Price, they are probably the lowest fee mutual fund company for actively managed funds. I like index funds, for which Vanguard and TIAA take the cake. TIAA-CREF does lack a little in diversification, however. There is no international index or small or value index funds. I wish they did, but you can't have everything. I use IRA's for that. Good Luck.

Pat

 

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T. Rowe Price offers target date retirement funds which I am fast becoming a fan of for retirement plans.

The T. Rowe Price funds are called:

 

Retirement 2040 Fund

Retirement 2030 Fund

Retirement 2020 Fund

Retirement 2010 Fund

(According to prospectus fees range from 0.71% to 0.89%)

 

Simply choose the year closest to your retirement date. Then invest in this one fund. The longer to retirement the more the fund is weighted toward stocks. The fund gradually becomes more weighted to fixed investments as the target date nears. This approach would have saved a lot of would-be retirees during the last market meltdown. In a single fund you get diversification that automatically adjusts. What could be simpler?

 

Vanguard and Fidelity also offer target date retirement funds.

 

Hope this is of value,

 

Dan Otter

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Guest Daniel Clark

I think T. Rowe & TIAA-CREF are better choices than Diversified. As always, you have to carefully examine your organization's offering as all providers now look at the specific economies of scale of each client situation.

 

Diversified Investment Advisors (DIA) used to be known as MONY- Mutual of New York, I believe. Their approach is to manufacture investment product and contract out much of the investment management to other entities. Nothing necessarily wrong with that as Vanguard also takes that approach for many of its funds. It is just something you should know. My experience with DIA is that they have retained some of the bad habits that insurance entities have had: less than full disclosure, high fees & lack of flexibility. I'd avoid them as you have good alternative available.

 

Good Luck,

 

DC

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TX,

Wrong again.

There is a link on the front page of this site to an article that talks about the disadvantages of having too many choices.

TIAA CREF makes it simple with a few choices at extremely low fees. We don't need 150 companies on my districts list to make it valuable, as you would claim. Furthermore, 95% of those companies all offer the same thing! TSAs.

 

Pat,

TIAA CREF has one to one consultants in my district. I agree that TC is a great company. I use them for my 403b too.

There is a lot of misinformation about TIAA CREF because the sales people can't compete with the low fees.

 

Steve

 

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I have experienced both TC and DIA first hand and strongly prefer TC.

 

Reasons include:

 

low fees

knowledgeable, responsive reps

good case studies in their newsletter/magazine

fewer, but better fund choices

ease of day-to-day tracking and account changes

 

 

 

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Guest Guest_Edd

My school district just added T Rowe Price and I am looking forward to investing with them in two of thier funds. I use TC in our 457 plan for my bond allocation. My wife also uses TC in her 457 plan. We are happy with TC and look forward to adding TRP to our investments.

Edd

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