Greg Shepard – S&A Financial Services, Inc.

Greetings, everyone! Greg Shepard from S&A Financial Services, your trusted partner in deciphering the intricacies of higher education retirement plans, especially those entwined with TIAA accounts. Today’s video is a must-watch, as I unpack one of my favorite strategies that has proven incredibly effective in the current high-interest-rate environment (2023), particularly with TIAA Traditional.

Enter the 120-Day Restoration Rule—a game-changer for those with liquid TIAA Traditional accounts. If you’re not familiar with this tactic, I strongly urge you to get acquainted with it. Now, a quick disclaimer: this isn’t financial advice, but an enlightening concept that could significantly impact your returns.

In this video, I break down the logistics of the 120-Day Restoration Rule. For participants with older Legacy buckets in TIAA Traditional earning around 4% or less, this strategy could be your golden ticket to increased returns, given today’s rates (2023). By selling these funds, moving them to a money market for 120 days, and reintroducing them back into TIAA Traditional, you stand to benefit from higher rates—currently around 6% (2023).

However, there’s a catch. This strategy shines brightest for those who’ve been in TIAA Traditional for a substantial period. If you’ve recently injected a large sum within the last 12 – 18 months to capitalize on higher rates, the 120-Day Restoration Rule might not be as advantageous. TIAA will prorate the exit funds, impacting the overall outcome.

Understanding the nuances of the 120-Day Restoration Rule is crucial. If you’re uncertain or curious about how this strategy aligns with your unique situation, I encourage you to reach out to TIAA or, of course, contact me. I’m here to assist you in navigating the intricacies of your retirement plan.

Make sure to like this video, hit subscribe, and ring that notification bell to stay updated on all things related to optimizing your retirement plans. Greg Shepard here, signing off from S&A Financial Services. Go out and have a fantastic day, folks! Take care.
#TIAAannuity #HigherEdRetirement #TIAATraditional #retirementplanning

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email: greg@shepardfinancial.com

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*Disclosure* S&A Financial Services, Inc. is a registered investment advisor. Content presented is for informational purposes only and should not be considered as investment advice or as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Always consult with your tax advisor or attorney regarding your specific situation….(read more)

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TIAA Traditional 120 day restoration rule – When NOT To Do It

When it comes to managing your retirement savings, it’s important to understand the rules and restrictions that govern your accounts. One such rule that affects TIAA Traditional, a fixed annuity option offered by TIAA, is the 120 day restoration rule.

The 120 day restoration rule is a unique feature of TIAA Traditional that allows investors to restore funds withdrawn from the account within a 120-day window without incurring any surrender charges or penalties. This means that if you withdraw funds from your TIAA Traditional account and decide within 120 days that you want to reinvest those funds, you can do so without any financial repercussions.

However, while the 120 day restoration rule can be a valuable tool for managing your retirement savings, there are certain situations in which it may not be advisable to take advantage of this feature.

First, it’s important to consider the potential impact of market fluctuations on your investments. If you withdraw funds from your TIAA Traditional account during a market downturn and then reinvest those funds within the 120-day window, you may miss out on the opportunity to benefit from a market rebound. In this scenario, it may be wiser to leave your funds invested in TIAA Traditional and avoid making any hasty decisions based on short-term market movements.

Additionally, investors should be aware of the potential tax implications of taking advantage of the 120 day restoration rule. Depending on your individual tax situation, withdrawing and reinvesting funds within a short timeframe could have tax consequences that outweigh the benefits of avoiding surrender charges. It’s important to consult with a tax professional before making any decisions that could affect your tax liability.

Finally, it’s important to consider the impact of frequent withdrawals and reinvestments on the overall performance of your retirement savings. While the 120 day restoration rule can provide flexibility in managing your TIAA Traditional account, frequent transactions can disrupt the long-term growth of your investments and may not be in line with your retirement savings strategy.

In conclusion, while the 120 day restoration rule can be a useful feature for managing your TIAA Traditional account, it’s important to carefully consider the potential drawbacks and limitations of this feature before making any decisions. By consulting with a financial advisor and evaluating the potential impact on your investment strategy, you can make informed decisions about when to take advantage of the 120 day restoration rule and when it may be more prudent to leave your funds invested in TIAA Traditional.