November 3, 2024

TIAA Overview

TIAA

TIAA

Introduction

Initially founded with the sole aim of providing and availing teachers with comprehensive and reliable retirement system, but today has grown and evolved to become a giant in the financial industry, whilst providing sustainable financial needs of people across all sectors of the economy which include government and private parastatal–academic, cultural, engineering, medical, profit and not for profit organizations, et cetera, and dedicated to keeping the same momentum for the next 100 years. TIAA is a fully established financial institution offering products and services which include but not limited to personal banking, investment products, retirement plans, et cetera tailored for customers to make rational financial decisions. This article, however, tends to avail you with full details about TIAA, touching every aspect of the organization which include: a quick snapshot of the company’s history, its products and services, business model, pros and cons, et cetera.

History

First, before delving deeply, it would be worthwhile to understand the company’s history and how it came into existence. Although, TIAA as a company is major case to study as it has myriads of astounding history, however, for the sake of brevity, the succeeding few lines briefly reveals the company’s history beginning from its inception henceforward.

TIAA is an acronym connoting the full meaning as Teachers Insurance Annuity Association.

“No man becomes rich, unless he enriches other,” the company’s vision and mission evolves and built on this quote by Andrew Carnegie who is known to be the founder of the company.

Founded in 1918 with an endowment of $1 million from the founder’s foundation–the Carnegie Foundation for the Advancement of Teaching. The company was initially founded with the aim to avail and provide pension related services to teachers and professors. And thus, the name TIAA-CREF, an acronym for Teachers Insurance and Annuity Association-College Retirement Equities Fund was birthed as the initial name of the company. However, as time whirls, the company’s operations became widened, transforming into a wider and fully financial services whose mission now isn’t only limited to provide pension services for teacher, but also, to provide wider financial services. Hence, in 2016, the company was re-branded and christened with the name–TIAA.

Dating from 2013 to 2018, amounting to six years consecutively, Refinitiv Lipper Fund Awards ranked TIAA as the No. 1 Best Overall Large Fund Company. In addition to this great feat for five consecutive years, 2016 to 2020, the company also won itself the Best Mixed Asset Large Fund Group awards. On 4th of October, 2021, Nuveen, TIAA’s investment manager ranked the No. 1 real estate asset manager. 

Business Model

 Congress’s cancellation of its tax-exemption status listed in the Taxpayer Relief Act of 1997 compelled TIAA to change its business model into being a for-profit organization, offering fully traditional financial services with focus on such products as (1) savings plans (2) retirement plans (3) investment plans, et cetera. TIAA is as of now structured as a profit making organization, having its taxable subordinates and subsidiaries. Its profits are shared annually amongst its traditional accounts holder and the amount of profits accrued to each holders are determined by its board members. TIAA’s headquarters is mounted in the heart of New York City, having a totality of 146 branches scattered across the United States as of March 2022.

In 2021, TIAA accounted for $1.3 trillion with over 5 million active and retirees accounts in over 15,000 institutions. 

Products Overview

TIAA offers wide range of products across all its entire business scopes ranging from investment products, to personal banking plans to retirement plans. In its entirety, TIAA products offers varieties of features specifically tailored for customers’ satisfaction and experience. The below lines highlights its products across its entire business scope.

Retirement Plans

Saving for future purpose especially when you eventually decide to hang your working boot could sometime be a difficult decision to make and a crooked path to navigate. However, with TIAA retirement product plans, you can retire with easy without having to worry about financial distresses. Below are the retirement plans currently being offered by TIAA.

  • Employer Plans for employees
  • Small Business Plans for SMEs
  • Individual Retirement Account (IRA) Plans

Personal Banking Products

No doubt, banking operations are enshrined with a lot of principles and standards which ought to comply with industrial banking standard and rules emanating from the Federal Reserve (the Central Bank of the United States). With such principles are minimum cash reserves, interest rate, and other Open Market Operation rules issued by the Federal Reserve, TIAA has proven pro-activeness by introducing banking products that not only satisfying to customers, but by extension, comply with banking standards and rules formulated by the Federal Reserve. Below are the list of TIAA’s banking products.

  • Yield Pledge Checking
  • Yield Pledge Money Market
  • Basic Savings
  • Basic CD’s
  • Bump Rate CD’s

Investment Plans

Making financial decisions that has the tendency to create future wealth is the basis of investment. Although, investment is often times characterized with elements of risk. As a matter of fact, the higher the risk, the higher the return on investment (ROI) accrued to you at end of the investment period. Nonetheless, investment is a rational venture. As Denzel Washinton, an American actor and veteran says, “nothing in life is worthwhile unless you take risks.” TIAA understands the merits that comes with investment and has done its best to introduce packages that are profitable whilst putting its clients first.  

Retirement Annuities

IRA’s

Mutual Funds

Brokerage Accounts

529 Education Savings

Managed Accounts

Health Savings Accounts (HSAs)

MarketSafe CDs

Pros

Wide range and variety of products: Just as walking into a large bookstore to face a lot of catalogue, with tons of books to select from, TIAA offers wider range of products in variety and this thus give customers an edge to pick from pool of products that best suit their needs.

Waivable monthly charges: In addition to giving customers a memorable services, TIAA offers free charges to some of their product. A typical example of this, is their personal banking products which virtually attract no maintenance cost. 

Minimum investment amount are allowed: TIAA offers minimum amount on investment especially on NFT mutual funds investment, as a matter of fact, you can invest as low as $500 and get a fair ROI at the end of your investment period.

Competitive returns: Most of the products listed on TIAA platform attract competitive returns compared to the same products offers by their counterparts in the same industry.

Digitalize products: As the is world thriving effortlessly in the digital space, TIAA has not been lagging behind as an organization. Many of its products and services can be accessed digitally, without having the need to visit their physical branches

Growth guaranteed: Being a customer of TIAA or holding an account with them avails you the opportunity to grow financially as the return you get on your investments, or the interest you enjoy on your savings account, or profit accrued to you as a holder of TIAA traditional account would no doubt be fair share of the cake for you.  

Loyalty bonus: For individuals who have been with the company for a number of years, TIAA offers them amazing bonuses for their loyalty.

Returning profits to clients: Through TIAA traditional account customers can be eligible to partake in the profit sharing of the company, as this is the sole premise in which TIAA is built upon.  

Cons

Limited Branch Location: Although, it was noted in the preceding lines of this article that TIAA has myriads number of branches, nonetheless, due to their vast mode of operation and massive customer base, TIAA is yet to adequately build that service tentacles that will serve is customers optimally.

Overdraft fee charges with no linked TIAA account: According to a research based review, some clients complain of being charged an overdraft fee without a linked account at TIAA. 

No single browser based platform: All products of TIAA are not listed on a singe browser platform, as a result, it’s often cumbersome to browse conveniently, and user might experience crashed-links whilst trying to access a product.

Conclusion

All being said, in this article, we have judiciously explore all the basic part of TIAA company, beginning with a snapshot from its background history, to exploring its business model, to addressing its products, to analyzing its pros and cons. Hence, I am confident this piece have given you a comprehensive overview of the Fortune 100 company, TIAA. And thus, this would aid you in deciding whether or not to opt for the company whilst making your retirement plans, or use them as your financial institution for personal related banking services, or perhaps, yours could be to make them your investment broker; however, whatever stratum you fall into, to me, giving TIAA a shot wont be a bad idea.

After operating for several years with proven records and astounding achievements both regionally and globally, and with assuring commitment to serve without jeopardizing their quality in the next 1oo years to come, TIAA has in no doubt proven to be a behemoth and colossus in the financial industry, and as a result, without conservation, I rank the company the best amongst its counterparts.