SWEngParticipantStatus: Other Professional, Small Business Owner, SpousePosts: 48Joined: 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!June 13, 2019 at 8:08 am MST #221576PedsModeratorStatus: PhysicianPosts: 4442Joined: 01/08/2016
depends on if you believe the TIAA special sauce is worth 7x a plain REIT index.Faithful StewardParticipantStatus: Financial Advisor, Small Business OwnerPosts: 517Joined: 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