1 New money allocated to TIAA Traditional within the TIAA IRA and Investment Solutions (IS) IRA accounts starting in May 2022 will receive a credited rate of 2.00% through February 28, 2023. New money is defined as any contribution made to TIAA Traditional within an existing or new TIAA IRA or IS IRA. This includes dollars reallocated from another investment into TIAA Traditional as well as transfers, rollovers and contributions.
2 Certain products and services, such as TIAA Traditional, are only available to eligible individuals.
3 Returns are largely unaffected by movements in stock or bond markets since returns are generated by rental income and changes in property values. For the 10-year period ended June 30, 2020, REA correlation to the S&P 500 Index and Barclay's Aggregate Bond Index was 0.11 and -0.07, respectively. Over this same period, correlation between the FTSE Nareit All Equity REIT Index and the S&P 500 Index was 0.76. You cannot invest directly in any index. Index returns do not reflect a deduction for fees and expenses.
4 Direct real estate has delivered higher risk-adjusted returns than bonds since the account's inception in 1995. As of June 30, 2020, the REA since-inception Sharpe ratio (a measure of risk-adjusted return) was 1.1, while the Bloomberg Barclays U.S. Aggregate Bond Index was 0.9 over the same period. The REA inception date is October 2, 1995. You cannot invest directly in any index. Index returns do not reflect a deduction for fees and expenses. Past performance does not guarantee future results.
Diversification is a way to help avoid risk and does not guarantee against loss. The real estate industry is subject to various risks including fluctuations in underlying property values, expenses and income, and potential environmental liabilities.
In general, the value of the TIAA Real Estate Account will fluctuate based on the underlying value of the direct real estate or real estate-related securities in which it invests. The risks associated with investing in the Real Estate Account include the risks associated with real estate ownership including among other things fluctuations in underlying property values, higher expenses or lower income than expected, risks associated with borrowing and potential environmental problems and liability, as well as risks associated with participant flows and conflicts of interest. For more complete discussion of these and other risks, please consult the prospectus.
This material is for informational or educational purposes only and does not constitute fiduciary investment advice under ERISA, a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor's own objectives and circumstances.
Prior to rolling over, consider your other options. You may be able to leave money in your current plan, withdraw cash or roll over the assets to a new employer's plan, if one is available and rollovers are permitted. Compare the differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features and tax treatment. Speak with a TIAA consultant and your tax advisor regarding your situation. Learn more at TIAA.org/reviewyouroptionsOpens pdf.
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TIAA Traditional is a fixed annuity product issued through these contracts by Teachers Insurance and Annuity Association of America (TIAA), 730 Third Avenue, New York, NY, 10017: Form series including but not limited to: 1000.24; G-1000.4; IGRS-01-84-ACC; IGRSP-01-84-ACC; 6008.8. Not all contracts are available in all states or currently issued.
