Greg Shepard – S&A Financial Services, Inc.

Just when you thought it couldn’t get better, TIAA goes and surprises me with their new May TIAA Traditional rates.

Beware though! Make sure you know what you’re doing prior to entering these TIAA Traditional contracts. There could be liquidity issues around some of your contracts.

Make sure to watch till the end where I reveal even a bigger surprise with TIAA Traditional held inside an IRA.

🎤 Podcast Episode – Why I’m a Hypocrite on TIAA Traditional

📆 Jump on my calendar to see how we can improve your higher ed retirement plan

email: greg@shepardfinancial.com

913-521-2381

*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)

LEARN MORE ABOUT: Retirement Annuities

REVEALED: How To Invest During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

TIAA, the financial services company known for providing retirement and investment solutions, has recently surprised its customers by announcing higher-than-expected interest rates for its TIAA Traditional account in May.

TIAA Traditional is a fixed annuity product that has been in existence for over 100 years and is offered exclusively to eligible retirement plan participants. This annuity provides investors with a stable and guaranteed income stream throughout their retirement years.

The company had initially announced a rate of 3.90% for TIAA Traditional in May 2021, which was already higher than the previous year’s rate of 3.75%. However, to the delight of its customers, TIAA has revised the rate upwards again by an additional 0.10%. As of May 2021, the new TIAA Traditional rate stands at 4.00%, far exceeding market expectations.

This unexpected surge in TIAA Traditional rates is the company’s response to the current economic conditions in the US. The Federal Reserve has kept interest rates at near-zero levels for over a year to support the economy during the pandemic. However, as the economy continues to recover, inflation has risen, leading to a rise in bond yields.

TIAA Traditional invests in long-term corporate bonds, which have seen significant increases in yields recently. These higher yields have made it possible for TIAA to offer a higher interest rate for its annuity product. It is crucial to note that TIAA Traditional is not a publicly traded investment vehicle and is not affected by market volatility, making it a reliable investment for those who value security.

The higher-than-expected TIAA Traditional rate is a significant win for investors who rely on fixed income investments for their retirement plans. The 4.00% interest rate is among the highest guaranteed returns available in today’s market, making it an attractive option for those seeking financial stability and predictability in their retirement income.

In conclusion, TIAA has surprised its customers with a generous increase in its TIAA Traditional interest rate for May 2021. This move is in response to changes in the bond market and is a testament to TIAA’s commitment to providing its customers with secure investments that offer reliable returns. This higher-than-expected rate will undoubtedly attract new investors and give existing customers a reason to celebrate.