Guide · 2026
Low-cost alternatives to TIAA for educators
If your priority is keeping costs low and flexibility high, here are the routes educators most commonly consider — and the honest trade-offs.
Important: This is independent educational information only. It is not financial advice, and Elmscotton is not affiliated with or endorsed by TIAA. Confirm the rules for your own contract and consider a licensed advisor before acting.
1. Low-cost index funds inside your plan
Many 403(b) menus include cheap broad-market or target-date index options (sometimes Vanguard or Fidelity funds). Often the simplest win is switching to the cheapest available share class you already have access to — no provider change needed.
2. A self-directed IRA
Rolling eligible balances into an IRA can unlock the full universe of low-cost index funds. Watch the Traditional Annuity’s transfer rules and any tax consequences first.
3. A simple three-fund portfolio
A total US market, total international, and bond index fund is a widely-followed, low-cost approach. It trades the Traditional Annuity’s guarantee for lower fees and full liquidity.
The honest catch: alternatives usually win on cost, but they give up the one thing TIAA does uniquely well — a guaranteed, lifetime-income floor. Decide which you value more for which slice of your money.