It is reasonable, appropriate, and long-standing for illiquid rates to be higher than liquid account rates. ... Just like normal yield curves. The more important difference is between different accounts with the same liquidity. For example, IRAs have the lowest liquid rates because more day-trader duuudes are there. But illiquid RC rates have been beating illiquid RA rates for several years.Maybe these different treatments could be designed to entice people to take their money from the liquid GRSA to illiquid RC?
Why? Because it is so important to the company to get employers to switch workers to a plan where TIAA can CHANGE the minimum guaranteed rate! That also explains why big RC/RCP plans can get R4 expense ratios for the CREF accounts. However, such plans also have administrative fees that older plan types do not.
Statistics: Posted by crefwatch — Sun Mar 03, 2024 4:15 am — Replies 7 — Views 651