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Switching To Calstrs Pension2

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Guest Joel L. Frank

A target date fund should be elected based on the approximate date one plans to start a regular withdrawal program which may be after the date of retirement.

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I am thinking of switching to the Calstrs pension2 conservative 2020 plan, but am having hard time trying to figure out last years yearly net return. Can anyone offer this info from there own statement just so I have some kind of idea of the performance.

Thanks

 

 

Hi Scott,

Welcome. Since TIAA CREF is the administrator, you might call them.

Here is something to ponder in the meantime. What if the return was terrific on one hand or it lost money on the other? What would you decide in each case? I hope you don't decide based on last years returns.

My point: Returns are not the reason we choose a plan. We choose plans because we want some exposure to risk via equities so we can outperform bonds to keep up with inflation, some protection with bonds for rebalancing to keep our gains, and fully diversified with bonds and equities as broadly as possible with all stocks from around the world and all bonds within the United States to manage and spread out the risk. We want to reduce risk, interestingly, returns are increased over time when risk is reduced through diversification. The return is not considered in this choice to choose or not choose a fund. Last year's return darlings become tomorrow's dogs and it can happen quickly.

 

http://enroll.tiaa-cref.org/Resources/CustomFiles/calstrs_easy_choice_ports.pdf

The 2020 fund is for somebody who is retiring around 8 years. It has a 29% equity and 71% fixed (bonds). I think it's a great choice because you have all of the bases covered with a broadly diversified portfolio including inflation protection and TIAA CREFs traditional annuity. I think it's a good choice for somebody close to retirement.

 

I am going to be 65 in a few months and I have a similar portfolio with 30% in stocks and 70% in bonds. My portfolio earned 2.6% last year, but over the last three years it earned an average annual return of 9.2%. I am happy since it recovered from a 11.9% loss in 2008.

 

If you have any more questions, we are here to help.

 

Have a great day,

Steve

 

 

Thanks Steve,

I did call them and they could not give me any rough figures on the performance of the fund. They said I would have to figure this out and I do not know how.

I just wanted to have some kind of guideline.

Thanks

 

 

Sorry you had trouble finding the information you were looking for. If you go to www.Pension2.com there is a link on the right had side of the page about half way down under "Quick Links" entitled "Quarterly Performance". The PDF document that launches contains performance information for all of the funds available under Pension2, including the Easy Choice Portfolios (page 5). Specific to your question, the Conservative 2020 fund returned 3.14% for calendar year 2011. On the Pension2 site you can also find allocation information for each of the Easy Choice Portfolios, which are set up with particular risk-tolerances and retirement dates in mind. If there is any additional information we can provide, CalSTRS Pension2 program can be reached at 1-888-394-2060.

 

 

Thanks Brian,

It's great that somebody from CalSTRS comes here to answer questions, assuming you are from CalSTRS pension2. The OP wanted the calendar year return for 2011 of that 2020 conservative portfolio. The page 5 reports through Aug 31, 2011 with 3 month, YTD, etc. etc. I am also interested in the calendar year returns of all of these portfolios since inception, from 2007 through 2011.

Thanks in advance,

Steve

 

 

Yes I am from CalSTRS, sorry for not clarifying. We are always here to answer any questions. Specific to the above request, the information on the Pension2.com site is current as of 12/31/2011 and includes 3 month and year-to-date returns, as well as 1 year, 3 year, and since inception returns for all Easy Choice Portfolios. The performance numbers are updated quarterly and 3/31/12 numbers will be posted to the site in the next few days.

 

 

Hi Brian,

Thanks again for answering the OP question and my request to get all of the data from the Easy Choice Portfolios. As a frequent poster for ten years, I just wanted to clarify your comment that calstrs were "always here to answer questions." Yes, that may be true if people call you on the phone.

 

I criticism of calstrs has been tight lipped about their PR on this site. For the past 4 years, there have been many questions about Pension 2 here. It's very frustrating for educators like us to get the word out about Pension 2, while seeing our colleagues get bitten by the 403b sharks all over California. Without your help, the OP would not have gotten his question answered.

 

It's very encouraging when you said that Pension2 staff is going to aggressively get the word out about the great Pension2 plan, the very best 403b in California that's available to all school districts.

Have a great weekend and look forward to more posts.

Steve

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I am thinking of switching to the Calstrs pension2 conservative 2020 plan, but am having hard time trying to figure out last years yearly net return. Can anyone offer this info from there own statement just so I have some kind of idea of the performance.

Thanks

 

 

Hi Scott,

Welcome. Since TIAA CREF is the administrator, you might call them.

Here is something to ponder in the meantime. What if the return was terrific on one hand or it lost money on the other? What would you decide in each case? I hope you don't decide based on last years returns.

My point: Returns are not the reason we choose a plan. We choose plans because we want some exposure to risk via equities so we can outperform bonds to keep up with inflation, some protection with bonds for rebalancing to keep our gains, and fully diversified with bonds and equities as broadly as possible with all stocks from around the world and all bonds within the United States to manage and spread out the risk. We want to reduce risk, interestingly, returns are increased over time when risk is reduced through diversification. The return is not considered in this choice to choose or not choose a fund. Last year's return darlings become tomorrow's dogs and it can happen quickly.

 

http://enroll.tiaa-cref.org/Resources/CustomFiles/calstrs_easy_choice_ports.pdf

The 2020 fund is for somebody who is retiring around 8 years. It has a 29% equity and 71% fixed (bonds). I think it's a great choice because you have all of the bases covered with a broadly diversified portfolio including inflation protection and TIAA CREFs traditional annuity. I think it's a good choice for somebody close to retirement.

 

I am going to be 65 in a few months and I have a similar portfolio with 30% in stocks and 70% in bonds. My portfolio earned 2.6% last year, but over the last three years it earned an average annual return of 9.2%. I am happy since it recovered from a 11.9% loss in 2008.

 

If you have any more questions, we are here to help.

 

Have a great day,

Steve

 

 

Thanks Steve,

I did call them and they could not give me any rough figures on the performance of the fund. They said I would have to figure this out and I do not know how.

I just wanted to have some kind of guideline.

Thanks

 

 

Sorry you had trouble finding the information you were looking for. If you go to www.Pension2.com there is a link on the right had side of the page about half way down under "Quick Links" entitled "Quarterly Performance". The PDF document that launches contains performance information for all of the funds available under Pension2, including the Easy Choice Portfolios (page 5). Specific to your question, the Conservative 2020 fund returned 3.14% for calendar year 2011. On the Pension2 site you can also find allocation information for each of the Easy Choice Portfolios, which are set up with particular risk-tolerances and retirement dates in mind. If there is any additional information we can provide, CalSTRS Pension2 program can be reached at 1-888-394-2060.

 

 

Thanks Brian,

It's great that somebody from CalSTRS comes here to answer questions, assuming you are from CalSTRS pension2. The OP wanted the calendar year return for 2011 of that 2020 conservative portfolio. The page 5 reports through Aug 31, 2011 with 3 month, YTD, etc. etc. I am also interested in the calendar year returns of all of these portfolios since inception, from 2007 through 2011.

Thanks in advance,

Steve

 

 

Yes I am from CalSTRS, sorry for not clarifying. We are always here to answer any questions. Specific to the above request, the information on the Pension2.com site is current as of 12/31/2011 and includes 3 month and year-to-date returns, as well as 1 year, 3 year, and since inception returns for all Easy Choice Portfolios. The performance numbers are updated quarterly and 3/31/12 numbers will be posted to the site in the next few days.

 

Is there a way to see a 10 year Y to D ?

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