Please Read the Following Information Carefully
The TIAA Retirement Advisor is a brokerage service provided by TIAA-CREF Individual & Institutional Services®, LLC ("TC Services"), a registered broker-dealer and Member FINRA, SIPC, is intended for use by residents of the United States, Puerto Rico, and US Virgin Islands only. TC Services and its parent, Teachers Insurance and Annuity Association of America ("TIAA"), along with their affiliates, are referred to as the "TIAA group of companies" in this document.
The TIAA Retirement Advisor is a brokerage service provided by TIAA-CREF Individual & Institutional Services®, LLC ("TC Services"), a registered broker-dealer and Member FINRA, SIPC, is intended for use by residents of the United States, Puerto Rico, and US Virgin Islands only. TC Services and its parent, Teachers Insurance and Annuity Association of America ("TIAA"), along with their affiliates, are referred to as the "TIAA group of companies" in this document.
TC Services has contracted with an independent financial expert, Morningstar Investment Management, LLC ("Morningstar Investment Management"), which has provided an investment methodology that is the basis for the advice and education supplied by the TIAA Retirement Advisor. Affiliates of TIAA are the registered investment advisers to the TIAA-CREF Mutual Funds, Nuveen Funds, CREF accounts and the TIAA Real Estate Account, and receive fees for providing investment advisory services. These fees are described in the applicable prospectuses.
TIAA Retirement Advisor:
The TIAA Retirement Advisor's objective is to help you reach your desired retirement income goal by helping you define a strategy based on asset allocation, savings and retirement age.
TIAA Retirement Advisor forecasts your retirement income goals up to and through retirement. While TIAA Retirement Advisor helps you to evaluate your goals, the information you receive is based on the accuracy of the data you input. Retirement Advisor, working with Morningstar Investment Management, will provide accurate and timely economic forecast and financial information, but will depend on you, the participant, to provide the most accurate assessment of your financial status and goals to ensure the output is meaningful.
TIAA Retirement Advisor:
The TIAA Retirement Advisor's objective is to help you reach your desired retirement income goal by helping you define a strategy based on asset allocation, savings and retirement age.
TIAA Retirement Advisor forecasts your retirement income goals up to and through retirement. While TIAA Retirement Advisor helps you to evaluate your goals, the information you receive is based on the accuracy of the data you input. Retirement Advisor, working with Morningstar Investment Management, will provide accurate and timely economic forecast and financial information, but will depend on you, the participant, to provide the most accurate assessment of your financial status and goals to ensure the output is meaningful.
Certain assumptions will be made, such as market performance, inflation rates, salary growth, taxes and social security based on econometric models and industry research. However, the market's past performance does not predict future performance.
Any asset allocations provided through the TIAA Retirement Advisor consists of model portfolios constructed to span a range of risk profiles based on Morningstar Investment Management's research-driven approach, to reflect different investor circumstances and are composed of target allocations for various asset classes. Projections generated by Retirement Advisor are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.
Using the TIAA Retirement Advisor:
As a Guest User (a user who has not logged in), you will be required to provide information about your assets earmarked for retirement including the account type, contribution amount, ownership and asset allocation. The TIAA Retirement Advisor will provide a suggested asset allocation model based upon the information you provide. It will not provide specific fund recommendations regarding your retirement assets. The TIAA group of companies assumes no responsibility or liability for decisions made by you with regard to any of your retirement assets. Additionally, the TIAA Retirement Advisor will not independently verify information you provide about your retirement assets.
The strategies illustrated in TIAA Retirement Advisor are designed to be implemented in their totality. Choosing to implement only part of a strategy may result in an investment strategy that does not correspond to your desired target allocations. For example, while accumulating assets for retirement, the asset allocation recommendations TC Services provides may differ if you elect not to increase your savings rate, plan to retire at a different age than suggested, or only implement some of the asset allocation recommendations.
Using the TIAA Retirement Advisor:
As a Guest User (a user who has not logged in), you will be required to provide information about your assets earmarked for retirement including the account type, contribution amount, ownership and asset allocation. The TIAA Retirement Advisor will provide a suggested asset allocation model based upon the information you provide. It will not provide specific fund recommendations regarding your retirement assets. The TIAA group of companies assumes no responsibility or liability for decisions made by you with regard to any of your retirement assets. Additionally, the TIAA Retirement Advisor will not independently verify information you provide about your retirement assets.
The strategies illustrated in TIAA Retirement Advisor are designed to be implemented in their totality. Choosing to implement only part of a strategy may result in an investment strategy that does not correspond to your desired target allocations. For example, while accumulating assets for retirement, the asset allocation recommendations TC Services provides may differ if you elect not to increase your savings rate, plan to retire at a different age than suggested, or only implement some of the asset allocation recommendations.
TIAA Retirement Advisor Data, Assumptions, and Methodology:
TIAA Retirement Advisor is appropriate for investors of all experience levels. Contextual help features are provided throughout the TIAA Retirement Advisor. Mouse over
throughout the online tool to access the specific contextual help features. The Frequently Asked Questions tab and How We Calculate and Provide Advice tab also provide contextual help. These features will help you further understand how the advice is formulated through the TIAA Retirement Advisor and the assumptions that it relies on.
TIAA Retirement Advisor is appropriate for investors of all experience levels. Contextual help features are provided throughout the TIAA Retirement Advisor. Mouse over
throughout the online tool to access the specific contextual help features. The Frequently Asked Questions tab and How We Calculate and Provide Advice tab also provide contextual help. These features will help you further understand how the advice is formulated through the TIAA Retirement Advisor and the assumptions that it relies on.Profile Information
Retirement Advisor allows you to enter profile and financial data related to your personal and financial situation. This information can include salary, age, state of residence, spouse/partner assets, dependents, retirement accounts, retirement income streams and social security retirement benefits.
Salary Growth
Retirement Advisor assumes that your salary will continue to grow over time with the long-term inflation rate using a consistent linear growth model. Your current or most recent salary is the basis for your retirement need, contribution amounts and social security calculations. All of these combined factors have a material impact on the advice you receive.
Salary Growth
Retirement Advisor assumes that your salary will continue to grow over time with the long-term inflation rate using a consistent linear growth model. Your current or most recent salary is the basis for your retirement need, contribution amounts and social security calculations. All of these combined factors have a material impact on the advice you receive.
Desired Retirement Income
Your Desired Retirement Income defines the spending amount Retirement Advisor calculates that you and your spouse will require to sustain your desired lifestyle in retirement. You may enter a retirement income for you and your spouse or partner, if applicable, as an after-tax dollar amount. Once your desired retirement income is established, Retirement Advisor simulations will estimate what is required to maintain that income throughout retirement, to the last surviving individual. This helps ensure that you are provided with a solution which helps promote a sustainable lifestyle in retirement for you and your spouse or partner.
Estimated Tax
Estimated Tax
Retirement Advisor assumes an estimate of your federal, state income and capital gains taxes based on marginal tax rate calculations throughout all simulations. Tax data is updated annually by Morningstar Investment Management based on Internal Revenue Code and similar state tax data. Income data for you and your spouse or partner, if applicable; are used to estimate federal and state tax exposure. Your tax exposure is reduced, as applicable, for pre-tax deferrals. TIAA-CREF Individual & Institutional Services, LLC provides a range of brokerage and investment advisory services, but does not provide tax or legal advice. Consult a qualified tax advisor or attorney for specific tax or legal advice.
Required Minimum Distribution (RMD)
At age 70 1/2 the IRS applies a mandatory distribution from retirement accounts. The IRS waves the RMD requirement for accounts which are part of an employer-sponsored retirement plan when the participant continues to work for that employer. Morningstar Investment Management calculates RMDs in accordance with IRS publications 590, 575, and 939.
Social Security Benefits
Retirement Advisor will provide an estimate of Social Security for both participant and spouse or partner, if applicable, based on current salary information. Social Security payments are inflated using a simulated Cost of Living Allowance designed to replicate the actual Social Security Administration formulas (available at www.ssa.gov). While Retirement Advisor can estimate Social Security benefits, the most accurate payment information is available from your Social Security statement. If a statement is available, you should enter this data as an override value to help ensure the most relevant advice is provided.
In addition to standard payments, Retirement Advisor accounts for reduction in payments while working in retirement, increases in benefits for the spouse 50% rule and increased benefits for the surviving spouse 100% rule. Social Security benefits are not automatically distributed; the benefits must be applied for. Retirement Advisor assumes that the participant/spouse completes all applications required to collect the maximum benefit. The spouse 50% Rule is defined as if the spouse has not contributed to social security, or spouse's benefits are less than 50% of the participant's, the spouse has the option of receiving 50% of the participant benefit at the max benefit age.
Desired Retirement Age
The TIAA Retirement Advisor assumes your target retirement age (and that of your spouse/partner if applicable) is age 67, or your current age plus 2 years if you are 66 or over, unless you indicate otherwise by using the edit functionality of the tool.
Income Projection
Retirement Advisor, using Morningstar Investment Management's proprietary methodology may provide education on savings rate, asset allocation, and retirement age, based on your retirement goals, with an aim of achieving a 70% likelihood of success. Since each output is dependent on other factors, changing a single factor may alter your strategy in other areas. For example, by reducing the desired retirement income goal, the savings rate, retirement age, and asset allocation may be impacted. The probability of success is determined by running your current strategy through a minimum of 500 Monte Carlo simulations and determining how many of the simulations provide you with assets until the end of your estimated retirement need, and how many simulations indicate a shortfall. The objective is to develop a strategy which creates sustainable income for your anticipated retirement need. This disciplined approach to investing and saving for retirement helps to ensure that you are able to maintain your lifestyle throughout retirement, even when faced with years of market volatility. The service solves for a likelihood of success to be 70% or more, which means that 7 out of 10 times your plan provides you with assets until the end of your estimated retirement needs.
The impact of taxes on our current and future income is estimated when calculating income projections and wealth projections. The system will estimate your tax rates based on the salary information you provide plus applicable Social Security and pension plan payments, pre-tax retirement plan contributions, sate of residence, number of dependents, marital status, and other factors. The tax rate assumptions impacts Morningstar Investment Management’s calculation of your after-tax income, the ongoing value of your taxable portfolios, and the taxability of any Social Security distribution. There is also an impact due to any regular or early retirement plan withdrawals (pre age 59 ½) you are projected to take. Income brackets are used to determine the tax impact within investment portfolios. Portfolios indexed to inflation will reflect how the IRS historically adjusted these brackets.
Savings Rate
The TIAA Retirement Advisor assumes any contributions to your retirement plan accounts will be dedicated to retirement and you will not liquidate such assets for use prior to retirement (e.g., through early withdrawals).
Retirement Advisor provides an advice strategy on your overall savings rate and optimal savings allocation to help you meet your retirement goal. Retirement Advisor solves for the savings rate which allows a 70% probability of success given your desired retirement income and desired retirement age. Retirement Advisor may suggest you increase savings to help you meet your retirement goals. Retirement Advisor will not advise a savings rate in excess of 25% of your income. However, if your current savings rate exceeds 25%, Retirement Advisor will continue to use your defined savings rate.
Asset Allocation Advice
The TIAA Retirement Advisor will recommend a proposed strategy with a specific risk tolerance level for you based on your goals and financial circumstances. This risk tolerance level, formulated by Morningstar Investment Management, is designed to adjust over time based on Morningstar Investment Management's proprietary methodology, based on academic research, which customizes a risk level trajectory based on the information you provide. Generally, it will assume that your risk tolerance level will become more conservative as you approach retirement. If you prefer, you can set your own risk tolerance level, by creating and selecting an alternate strategy. In such case, Morningstar Investment Management will use a fixed risk tolerance model (i.e., one that will not adjust over time) to calculate the advice provided through the TIAA Retirement Advisor. In other words, it will assume that your risk level will remain static throughout the projection. Therefore, if your risk tolerance level changes, you should consider running a new TIAA Retirement Advisor session.
Retirement Age Advice
Retirement Advisor provides a strategy that is designed to promote sustainable income at your desired retirement age. To help you achieve this goal Retirement Advisor will recommend an optimal retirement age, which may extend beyond your desired retirement age.
IMPORTANT: Projections or other information generated by the Morningstar Investment Management software program used by the TIAA Retirement Advisor regarding the likelihood of various investment outcomes are hypothetical, do not reflect actual investment results and are not a guarantee of future results. Results may vary with each use and over time. The projections are dependent in part on subjective assumptions, including the rate of inflation, tax rates and the rate of return for different asset classes. These rates are difficult to accurately predict. Changes in the law, financial markets, or your personal circumstances can cause substantial deviations from the estimates. This could result in declines in the account's value over short or even extended periods of time. While the advice given through the TIAA Retirement Advisor is based on strategies consistent with prudent long-term investing and diversification principles, any investment is subject to risk. These risks are described in the securities' respective prospectuses. The prospectuses, which provide additional information on investment objectives, charges and expenses, should be read carefully prior to investing. Visit www.tiaa.org or call 877-518-9161 for a prospectus. TIAA Retirement Advisor is not a substitute for a comprehensive financial plan. You should not rely on the report as a primary means of planning for retirement. You should periodically monitor your retirement strategy as your needs and circumstances change.
TIAA-CREF Individual & Institutional Services, LLC provides a range of brokerage and investment advisory services, but does not provide tax or legal advice. Consult a qualified tax advisor or attorney for specific tax or legal advice.
The TIAA Retirement Advisor is a brokerage service provided by TIAA-CREF Individual & Institutional Services, LLC, a registered broker-dealer, member FINRA and SIPC.
The TIAA Retirement Plan Portfolio Manager program is a discretionary fee-based asset allocation advisory program provided by the TIAA-CREF Trust Company, FSB.
Certain securities may not be suitable for all investors. Securities are subject to investment risk, including loss of the principal amount invested.
Investment (including securities), insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value. The mutual funds available through TIAA, including available share classes and certain funds within a fund family, may change over time at TIAA's discretion.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. Advisory services provided by Advice & Planning Services, a division of TIAA-CREF Individual & Institutional Services, LLC, a registered investment adviser. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Please contact your financial advisor or call 877-518-9161 for a current prospectus that contains this and other information. Please read the prospectuses carefully before investing.
©2017 and prior years, Teachers Insurance and Annuity Association of America - College Retirement Equities Fund (TIAA-CREF), New York, NY 10017
IMPORTANT: Projections or other information generated by the Morningstar Investment Management software program used by the TIAA Retirement Advisor regarding the likelihood of various investment outcomes are hypothetical, do not reflect actual investment results and are not a guarantee of future results. Results may vary with each use and over time. The projections are dependent in part on subjective assumptions, including the rate of inflation, tax rates and the rate of return for different asset classes. These rates are difficult to accurately predict. Changes in the law, financial markets, or your personal circumstances can cause substantial deviations from the estimates. This could result in declines in the account's value over short or even extended periods of time. While the advice given through the TIAA Retirement Advisor is based on strategies consistent with prudent long-term investing and diversification principles, any investment is subject to risk. These risks are described in the securities' respective prospectuses. The prospectuses, which provide additional information on investment objectives, charges and expenses, should be read carefully prior to investing. Visit www.tiaa.org or call 877-518-9161 for a prospectus. TIAA Retirement Advisor is not a substitute for a comprehensive financial plan. You should not rely on the report as a primary means of planning for retirement. You should periodically monitor your retirement strategy as your needs and circumstances change.
TIAA-CREF Individual & Institutional Services, LLC provides a range of brokerage and investment advisory services, but does not provide tax or legal advice. Consult a qualified tax advisor or attorney for specific tax or legal advice.
The TIAA Retirement Advisor is a brokerage service provided by TIAA-CREF Individual & Institutional Services, LLC, a registered broker-dealer, member FINRA and SIPC.
The TIAA Retirement Plan Portfolio Manager program is a discretionary fee-based asset allocation advisory program provided by the TIAA-CREF Trust Company, FSB.
Certain securities may not be suitable for all investors. Securities are subject to investment risk, including loss of the principal amount invested.
Investment (including securities), insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value. The mutual funds available through TIAA, including available share classes and certain funds within a fund family, may change over time at TIAA's discretion.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products. Advisory services provided by Advice & Planning Services, a division of TIAA-CREF Individual & Institutional Services, LLC, a registered investment adviser. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association of America (TIAA) and College Retirement Equities Fund (CREF), New York, NY. Each is solely responsible for its own financial condition and contractual obligations.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Please contact your financial advisor or call 877-518-9161 for a current prospectus that contains this and other information. Please read the prospectuses carefully before investing.
©2017 and prior years, Teachers Insurance and Annuity Association of America - College Retirement Equities Fund (TIAA-CREF), New York, NY 10017