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I just called TIAA-CREF to close out the mutual fund I have with them. The woman I spoke to asked for identification questions, told me how much money I'll be getting back and when, and made sure I had her full name and telephone extension. She did not ask why I was closing the account, or try to dissuade me. This made the experience quick and pleasant.
There are two reasons I'm closing the account. One is that I can use the money. The other is that the amount currently there is just over half of what I had left the last time I made a withdrawal. The whole point of having professionals manage my money is, or should be, that they have more information and can do a better job than I can; in this case, I'd have done better putting it in my savings account, even allowing for current low interest rates, because at least I wouldn't have lost money.
That said, I'm quite happy having my 401K funds in their hands--that's a long-term thing, and a lot of it is stashed in an account which guarantees me principal plus at least 3 percent, compounded, and has generally paid considerably better than that. But the "growth and income" mutual fund wasn't either, at this stage of the economy; I'm not hanging onto it so I can put more money in later. (Opening a new account would require a minimum of considerably more than the $358 I have there now.)
There are two reasons I'm closing the account. One is that I can use the money. The other is that the amount currently there is just over half of what I had left the last time I made a withdrawal. The whole point of having professionals manage my money is, or should be, that they have more information and can do a better job than I can; in this case, I'd have done better putting it in my savings account, even allowing for current low interest rates, because at least I wouldn't have lost money.
That said, I'm quite happy having my 401K funds in their hands--that's a long-term thing, and a lot of it is stashed in an account which guarantees me principal plus at least 3 percent, compounded, and has generally paid considerably better than that. But the "growth and income" mutual fund wasn't either, at this stage of the economy; I'm not hanging onto it so I can put more money in later. (Opening a new account would require a minimum of considerably more than the $358 I have there now.)