Is it safe to move money from TIAA to Vanguard funds?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
jfarkleman
Posts: 2
Joined: Fri Oct 27, 2017 12:25 pm

Is it safe to move money from TIAA to Vanguard funds?

Post by jfarkleman » Fri Oct 27, 2017 12:35 pm

One of my retirement accounts is through TIAA-CREF. It is a 403b. Within that account I have access to Vanguard, TIAA, Oppenheimer, and T.Rowe Price funds. Actually, the Vanguard ones are a fairly new offering. I have been following the advice of others by choosing the funds that have the lowest fees, which up until this point have been TIAA funds.

My main question is this: I have about $35k (about 25% of my portfolio at TIAA) in TRLIX TIAA-CREF Large-Cap Value Fund Institutional. The fees are .42%. Should I move all of that money into the newly offered VINIX Vanguard Institutional Index Fund Institutional? All money will remain within my TIAA-CREF account. Sorry if it's a dumb question but do I lose any sort of capital gains or benefit of having owned some of those TRLIX shares for over 15 years? Is there any reason NOT to move the money?

User avatar
ruralavalon
Posts: 11674
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Is it safe to move money from TIAA to Vanguard funds?

Post by ruralavalon » Fri Oct 27, 2017 7:36 pm

Welcome to the forum :) .
jfarkleman wrote:
Fri Oct 27, 2017 12:35 pm
One of my retirement accounts is through TIAA-CREF. It is a 403b. Within that account I have access to Vanguard, TIAA, Oppenheimer, and T.Rowe Price funds. Actually, the Vanguard ones are a fairly new offering. I have been following the advice of others by choosing the funds that have the lowest fees, which up until this point have been TIAA funds.

My main question is this: I have about $35k (about 25% of my portfolio at TIAA) in TRLIX TIAA-CREF Large-Cap Value Fund Institutional. The fees are .42%. Should I move all of that money into the newly offered VINIX Vanguard Institutional Index Fund Institutional? All money will remain within my TIAA-CREF account. Sorry if it's a dumb question but do I lose any sort of capital gains or benefit of having owned some of those TRLIX shares for over 15 years? Is there any reason NOT to move the money?
You do not lose any capital gains, dividends or tax benefit by exchanging between funds inside the same tax-advantaged account like your 403b.

You get a lower expense ratio and a better diversification by exchanging from the TIAA-CREF Large-Cap Value Fund to Vanguard Institutional Index Fund Institutional (VINIX) ER 0.04%, which is a large-cap blend fund using the S&P 500 Index.

You lose the "value" tilt to your investment, which matters to some people. That would not keep me from making the exchange.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

jfarkleman
Posts: 2
Joined: Fri Oct 27, 2017 12:25 pm

Re: Is it safe to move money from TIAA to Vanguard funds?

Post by jfarkleman » Mon Oct 30, 2017 8:33 am

Thank you very much! I appreciate your help!

student
Posts: 1329
Joined: Fri Apr 03, 2015 6:58 am

Re: Is it safe to move money from TIAA to Vanguard funds?

Post by student » Mon Oct 30, 2017 8:58 am

Since you have access to TRLIX TIAA-CREF Large-Cap Value Fund Institutional, do you have TIEIX Equity Index with 0.05% ER?

User avatar
CyclingDuo
Posts: 840
Joined: Fri Jan 06, 2017 9:07 am

Re: Is it safe to move money from TIAA to Vanguard funds?

Post by CyclingDuo » Mon Oct 30, 2017 9:04 am

jfarkleman wrote:
Fri Oct 27, 2017 12:35 pm
One of my retirement accounts is through TIAA-CREF. It is a 403b. Within that account I have access to Vanguard, TIAA, Oppenheimer, and T.Rowe Price funds. Actually, the Vanguard ones are a fairly new offering. I have been following the advice of others by choosing the funds that have the lowest fees, which up until this point have been TIAA funds.

My main question is this: I have about $35k (about 25% of my portfolio at TIAA) in TRLIX TIAA-CREF Large-Cap Value Fund Institutional. The fees are .42%. Should I move all of that money into the newly offered VINIX Vanguard Institutional Index Fund Institutional? All money will remain within my TIAA-CREF account. Sorry if it's a dumb question but do I lose any sort of capital gains or benefit of having owned some of those TRLIX shares for over 15 years? No. Is there any reason NOT to move the money? No.
Yes, switch to the Vanguard funds available at TIAA. Here are the 4 we use to target a Three Fund Portfolio at TIAA...

Vanguard 500 Index Fund Admiral 40% (ER .05)
Vanguard Extended Market Index Fund Admiral 15% (ER .09)
Vanguard Total International Stock Index Fund Admiral 15% (ER .12)
Vanguard Total Bond Market Index Fund Admiral 30% (ER .06)

Pigeye Brewster
Posts: 28
Joined: Thu Oct 05, 2017 7:33 pm

Re: Is it safe to move money from TIAA to Vanguard funds?

Post by Pigeye Brewster » Mon Oct 30, 2017 12:36 pm

My wife's 403(b) administered by TIAA recently added Vanguard Institutional Index (VINIX) and Vanguard Total Bond Market Institutional (VBTIX). Expense ratios are 0.04% and 0.05%, respectively. We moved her balances into those two funds (we have international and total market in other accounts).

Post Reply