TIAA-CREF Introduces Lifecycle Retirement Income Fund
NEW YORK, NY, January 22, 2008 -- Building on ninety years of helping to meet the financial needs of clients to and through retirement, TIAA-CREF today introduced the Lifecycle Retirement Income Fund, a new low-cost, well-diversified mutual fund that seeks high total return over time primarily through income, with a secondary emphasis on capital appreciation.
The Fund is intended for investors who are nearing retirement, are looking to roll over assets to an IRA from another tax-advantaged retirement plan, such as a 403b or 401k, or investors already in retirement seeking the convenience and flexibility of a diversified income generating fund. The Fund's annual net expense ratio (for the Retirement Class), 0.61% of net assets, is among the lowest in the financial services industry.i
"This new fund offers retirement investors what we believe is an optimal amount of growth without undue risk, and complements other funds and accounts as part of a well-diversified retirement portfolio," said Scott C. Evans, Executive Vice President, Asset Management. "The Lifecycle Retirement Income Fund builds on TIAA-CREF's innovations in investing for retirement including creating the first variable annuity in 1952, pioneering international equity investing in the early 1970s, and taking a leading role in creating the first inflation-protected bonds."
A Convenient Retirement Income Option
The Lifecycle Retirement Income Fund is designed to help support investors' capital preservation and income needs throughout retirement. The Fund, from which investors may withdraw assets at any time, complements guaranteed retirement income vehicles such as annuities or systemic withdrawals from an IRA or other account. Thus, the Fund offers investors the freedom to access their capital easily through a mutual fund investment, combined with the opportunity to draw a modest stream of income.
"TIAA-CREF's unique advantages of choice, objectivity, personalized advice, commission-free products and servicesii, exceptional value and staying power continue to distinguish our service for individuals investing to and through retirement," said Maliz Beams, executive vice president of Individual Client Services. "The Lifecycle Retirement Income Fund builds on these unique advantages to offer clients a convenient and easy-to-use option for income replacement in retirement."
The Lifecycle Retirement Income Fund, along with other retirement income vehicles such as low-cost annuities that can provide guaranteed lifetime income, can enable individuals to create a foundation that balances income, preservation of capital and the flexibility to convert assets to cash as needed.
Optimal Asset Allocation, Objective Advice, No Sales Commissions and Value
The Lifecycle Retirement Income Fund, part of TIAA-CREF's family of Lifecycle Funds, is a "fund of funds," and primarily invests in Institutional Class shares of other TIAA-CREF funds (called "underlying funds"). The Fund is typically forty percent invested in underlying funds that invest in equity securities, like stocks, and sixty percent invested in underlying funds that invest in fixed-income securities, like bonds. This asset allocation is consistent with the final asset allocation of TIAA-CREF's target date Lifecycle Funds and reflects the organization's rigorous internal research and modeling, informed by academic and industry research, to ensure access to capital appreciation without undue risk. This asset mix continues to allow investors access to any appreciation in equity markets during retirement. The Lifecycle Retirement Income Fund's asset allocation positions it as the most conservative option in the spectrum of Lifecycle Funds available.
TIAA-CREF currently provides 500,000 participants with a combined $10 billion in annual payments. TIAA-CREF also offers participants over 20 income options.
The organization's retirement specialists receive no sales commissions as part of their total compensation. Instead, they are compensated through a salary plus incentive program that rewards client service excellence, rather than product promotion.
About TIAA-CREF
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization and the leading provider of retirement services in the academic, research, medical and cultural fields with $437 billion in combined assets under management (9/30/07). TIAA-CREF Individual & Institutional Services, LLC, and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. Annuity products are issued by TIAA (Teachers Insurance and Annuity Association), New York, NY. Brokerage Services are provided by TIAA-CREF Brokerage Services, a division of TIAA-CREF Individual & Institutional Services, LLC. Advice and Planning Services is a division of TIAA-CREF Individual & Institutional Services, LLC.
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