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TIAA-CREF Strategy |
TIAA-CREF Strategy
from Good Fortune
This page offers a basic investment strategy for those with access to the TIAA-CREF family of funds, usually in 403(b) retirement plans.
The intent is a basic 75% equity and 25% bond income allocation with a modest amount of market timing to avoid significant loss periods, such as 2001-2 and 2008. This approach can at least match buy and hold with reduced risk and most often provide a return several percent per year above buy and hold. Over 10 years a 2% 'edge' means 38% more gain.
This method follows the Level 2 Strategy presented on Page 15 of Mastering The Market's Mind which you receive with your Good Fortune subscription and upon each renewal. This strategy holds equity funds when our Trend Long-term Indicator and Sentiment Indicator SI both have 'buy' status. Other combinations generate a 'sell' signal for equities. The income holding is determined by the relative performance of a medium term bond fund versus a money fund.
Bond funds are generally unattractive due to their low dividend rate and sensitivity to a rising interest rate. Thus, that allocation is parked in the safety of a money fund.
As our Trend Long-Term Indicator is on a "buy equities" and the bond component is too risky, our holdings a split between equities and cash. When our TLI Trend Indicator moves to a sell the TISPX portion will move to a money fund.
Last updated June 23, 2011.
| Fund | Symbol | Allocation |
| S&P 500 Index Fund | TISPX | 75% |
| Money Market Fund | TCIXX | 25% |
| Bond Fund | TIBDX | |
| Equity Index Fund | TIEIX | |
| High-Yield Fund | TIHYX | |
| Short-Term Bond Fund | TISIX | |
| International Equity Index Fund | TCIEX |
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Last Modified 2011-06-23