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VGSLX or QREARX?

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  • Avatar SWEng 
    Participant
    Status: Other Professional, Small Business Owner, Spouse
    Posts: 48
    Joined: 04/08/2017

    My wife is finishing her residency in a couple of weeks. She was eligible for 403b during second and third year of residency and she will end up with about $50K in that account. The account is with TIAA and all $50K are in QREARX (0.83% ER). Her new employer offers 403b through Transamerica and she’ll have access to VGSLX (0.12% ER). I understand that QREARX is direct ownership of commercial real estate and less volatile than VGSLX. This is currently about 15% of our portfolio, but we plan to keep real estate at 10%.

    Should we rollover her TIAA account into new account with Transamerica and convert QREARX to VGSLX, or keep TIAA account because we don’t have access to QREARX otherwise?

    Thank you in advance!

    #221576 Reply
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4442
    Joined: 01/08/2016

    depends on if you believe the TIAA special sauce is worth 7x a plain REIT index.

    #221579 Reply
    Faithful Steward Faithful Steward 
    Participant
    Status: Financial Advisor, Small Business Owner
    Posts: 517
    Joined: 06/12/2017

    Just looking at the comparison of their 5-year and 10-year returns would sway me toward rolling to Transamerica and utilizing VGSLX for your real estate allocation.

    Michael Peterson, CFP® | Faithful Steward Wealth Advisors
    https://ProsperousPhysician.com | (717) 496-0900

    #221586 Reply
    Liked by SWEng, Peds
    Avatar SWEng 
    Participant
    Status: Other Professional, Small Business Owner, Spouse
    Posts: 48
    Joined: 04/08/2017

    Thank you for your feedback!

    #221783 Reply

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