Description: The following article mainly has the topic about tiaa login, which shows you how to get your money out of TIAA-CREF after you retire. The author assists university faculty with asset management, estate planning, retirement planning, tax preparation and financial projections.
How do you get your money out of TIAA cref after you retire? That will be a cornerstone of today’s talk, it is accumulating money, let’s for the moment forget about the university match, for the CMU people that are here, if you work for University of Pittsburgh and you put in eight percent, the university puts in twelve percent, so you get a hundred and fifty percent return on your investment on day one.
They’re at CMU, they put in eight percent, you can put in whatever you want, but at the University of Pittsburgh you’d have to be crazy, you do not put in eight percent because if you put in eight percent, they put in twelve percent, for the cost of eight percent, you get a tax deduction, you get twenty percent of your pay.
Let’s even assume that you’re doing that, if you’re not doing that, you should sign up tomorrow, there isn’t one excuse in the world that you could give me that, that would not satisfy me, that isn’t the right thing to do, people have tried.
But let’s assume for discussion’s sake that you’re already doing that or you’re at CMU, the question is should you put more money on top of that? What I’m going to do is that I’m going to compare two people, they each earn the exact same amount of money.
They have identical investments, they have identical taxes, but one says that he is going to put some money in his retirement plan over and above what he is required to or over and above the match, the other person says that now he is going to save money the old-fashioned way. He is going to earn the money, pay the tax, have the money be taxable every year.
Compared to the first person, the person in blue who says that he is going to earn the money and does not pay the tax has the money earn interest, dividends, capital gains and does not pay tax on that until he takes it out, what you can see is that the person in blue is way ahead.
Let’s say that they each work till they’re 70, person in Blue has a lot more money but to be fair the person in blue hasn’t paid taxes yet, so the person in blue pays taxes on the distribution, but because they had so much more, they can afford to pay two taxes and still have a lot more.
After a lifetime you’re talking about a two million dollars difference, they earn the same, tax rates are the same, spending is the same, but by putting money in their retirement plan even forgetting the match, there’s a two million dollars difference over a lifetime.