DUKE UNIVERSITY MAY, 2012 “HOW AM I DOING?” UNDERSTANDING AND ACHIEVING YOUR LONG-TERM FINANCIAL GOALS C48690

TODAY’S OBJECTIVES Take stock of your progress towards a successful retirement Consider other important lifetime financial goals Understand strategies and actions for realizing your goals WELCOME

OVERVIEW “RETIREMENT: HOW AM I DOING?” Am I on track? What can I do to get on track? What can I do to stay on track?

OVERVIEW “MY FINANCES: HOW AM I DOING?” Am I living within my means? How am I managing debt? Can I afford home improvement? A bigger house?

OVERVIEW “PROTECTING AND PLANNING: HOW AM I DOING?” Do I have enough for emergencies? Do I have enough insurance, and the right kind? Am I saving and investing systematically, and the right way?

OVERVIEW WHAT WE’LL DISCUSS TODAY Getting to retirement Investing and taxes Envisioning your retirement Protecting and planning Getting it done

OVERVIEW THE MANY WAYS TIAA-CREF CAN HELP Planning for retirement Planning for other lifetime financial goals Offering the right products at the right time Providing financial advice along the way

GETTING TO RETIREMENT THE VALUE OF STARTING NOW Hypothetical Illustration. Based on a 6% Annualized Rate of Return. By paying less taxes, you’ll have more money to save. This graph shows how your extra savings can grow over time with potentially compounded earnings. Of course, investments carry risks, including the risk of loss. These returns are for illustrative purposes only and do not reflect actual product performance. Age 40-70Age 35-70Age 30-70Age Annual $4,800 Contributions $144,000$168,000$192,000$216,000 Earnings$247,703$384,116$574,785$838,061 Total Accumulation$391,703$552,116$766,785$1,054,061

GETTING TO RETIREMENT HOW MUCH WILL YOU NEED, NOW AND LATER? Percentage of preretirement income Retirement can last 30+ years

GETTING TO RETIREMENT EXPECTED MAJOR SOURCES OF RETIREMENT INCOME SourcesAll Workers Employer-sponsored retirement plan42% Social Security32% Pension28% Employment26% Personal savings25% IRAs24% Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2009 Retirement Confidence Survey

GETTING TO RETIREMENT PAY YOURSELF FIRST! You won’t spend what you don’t take home Can you put aside more?

GETTING TO RETIREMENT GOING BEYOND YOUR EMPLOYER RETIREMENT PLAN Before-Tax Investor After-Tax Investor Annual Salary$50,000 Before-Tax Contribution to IRA/SRA $4,000$0 Taxable Salary$46,000$50,000 Federal Income Tax$2,090$2,690 Social Security Tax$2,825 After-Tax Salary$41,085$44,485 After-Tax Investment$0$4,000 Savings$600$0 Assumptions: Four exemptions, joint return, standard deduction, 2011 tax rates. This is a hypothetical example for illustrative purposes only.

GETTING TO RETIREMENT SRA, IRA, ROTH IRA: VARIATIONS ON A POWERFUL THEME Applicable tax year is Contributions are subject to limits imposed by current tax laws. *Roth IRAs allow for tax-free withdrawals of contributions at any time and tax-free withdrawals of both contributions and earnings after 5 years if age 59 1/2, disabled, deceased or used for qualified first-time homebuyer expenses (up to $10,000). **Under each scenario, you must have a salary at least equal to the maximum amount you can contribute. ***You must be an employee of an eligible teaching institution, hospital, church, home health agency or health and welfare service agency to be eligible for these contribution limits. IRARoth IRA*SRA** Contribution limit$5,000 $16,500 Contribution limit age 50+$6,000 $22, years of employment service$19,500*** 15+ years of employment service (age 50+)$25,000***

GETTING TO RETIREMENT MEET DIANA: HOW IS SHE DOING?

GETTING TO RETIREMENT MEET DIANA: HOW IS SHE DOING Age 38, in profession 12 years Maximizes her voluntary plan (to receive match) Makes voluntary contributions beyond employer match

GETTING TO RETIREMENT MEET DIANA: HOW IS SHE DOING Current Tax Advantages of IRAs/SRAs Before-Tax Contribution to Employer Retirement Plan $3,000 Employer Match (up to 6% of salary)$3,000 Voluntary Contribution to SRA$2,400 Total Contributions and Match$8,400 Annual Income$50,000 Annual Taxable Income$44,600 Federal Income Tax Savings$810 Assumptions: Four exemptions, joint return, standard deduction, 2011 tax rates. This is a hypothetical example for illustrative purposes only.

INVESTING AND TAXES “AM I PROPERLY DIVERSIFIED?” *Based on the claims-paying ability of TIAA. YEARS UNTIL RETIREMENT : Guaranteed* Fixed Income Equities Real Estate Money Market

INVESTING AND TAXES DIVERSIFY ACROSS ASSET CLASSES, AND WITHIN THEM Diversification is a technique to help reduce risk. There is no absolute guarantee that diversification will protect against investment losses. *Based on the claims-paying ability of TIAA. Large Cap Mid Cap Small Cap International Guaranteed* Fixed Income Equities Real Estate Money Market

INVESTING AND TAXES “HOW SHOULD I INVEST?” Here’s the number of funds/accounts offered at your institution: s1 Fixed Income3 Equities23 Real Estate1 Money Market Multi-Asset 1 12

INVESTING AND TAXES TIAA-CREF LIFECYCLE FUNDS*: AGE-APPROPRIATE ALLOCATIONS *Available through the Institutional Class of shares of TIAA-CREF Institutional Mutual Funds TIAA-CREF Lifecycle Funds are actively managed, so their asset allocations are subject to change and may vary from those shown or discussed. Approximately seven to ten years after a Lifecycle Fund’s target date, the fund may merge into the Lifecycle Retirement Income Fund or a similar fund. Asset allocations become more conservative as you approach retirement As with all mutual funds, the principal value of a Lifecycle Fund isn’t guaranteed. Also, please note that the target date of the Lifecycle Fund is an approximate date when investors may begin withdrawing from the fund Fund2045 Fund2040 Fund2035 Fund2030 Fund 2025 Fund2020 Fund 2015 Fund 2010 FundRetirement Income Fund Fixed Income Funds Equities and Real Estate Securities Funds

DOLLAR COST AVERAGING CAN WORK TO YOUR ADVANTAGE Contributions made regularly and systematically Not as vulnerable to market levels as investing all at once Dollar cost averaging does not assure a profit or protect against a loss in declining markets. Because such a strategy involves periodic investment, you should consider your financial ability and willingness to continue purchases through periods of low price levels. INVESTING AND TAXES

DOLLAR COST AVERAGING CAN WORK TO YOUR ADVANTAGE Potential lower average cost per share Does not guarantee against loss Dollar cost averaging does not assure a profit or protect against a loss in declining markets. Because such a strategy involves periodic investment, you should consider your financial ability and willingness to continue purchases through periods of low price levels. INVESTING AND TAXES

Lump Sum Investment Unit Price Units Purchased $10 $20 $5,000$25200 $20 $10 $25 $5,000$40125 $20 $25 $40 Total Units325 Average price per unit$30.77 INVESTING AND TAXES DOLLAR COST AVERAGING AT WORK Information is hypothetical and for illustrative purposes only. Figures are not indicative of the performance of any particular investment. Dollar cost averaging does not assure a profit or protect against a loss in declining markets. Because such a strategy involves periodic investment, you should consider your financial ability and willingness to continue purchases through periods of low price levels. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Dollar Cost Averaging Investment Unit Price Units Purchased $1,000$10100 $1,000$2050 $1,000$2540 $1,000$2050 $1,000$10100 $1,000$2540 $1,000$4025 $1,000$2050 $1,000$2540 $1,000$4025 Total Units520 Average price per unit$19.23

INVESTING AND TAXES IMMEDIATELY LOWER YOUR CURRENT TAXABLE INCOME Available with employer plan Possibly available with SRA and IRA

GETTING TO RETIREMENT IMMEDIATELY LOWER YOUR CURRENT TAXABLE INCOME Plan Participant Non-Plan Participant Gross Income$50,000 Annual Contribution$5,000$0 Taxable Salary$45,000$50,000 Federal Income Tax$3,050$3,800 Tax Savings$750$0 Assumptions: Four exemptions, joint return, standard deduction, 2011 tax rates. This is a hypothetical example for illustrative purposes only.

INVESTING AND TAXES THE POWER OF TAX DEFERRAL Dollar cost averaging does not assure a profit against a loss in a declining market. Because such a strategy involves periodic investments, you should consider your financial ability and willingness to continue purchases through periods of low price levels. The calculations assume a 6% annual rate of return on investments with no withdrawals during the period indicated and do not reflect the deduction of expenses. If expenses were deducted, the performance would be lower. The assumed rate is purely hypothetical and is not intended to predict the actual performance of any TIAA-CREF account. Please remember that there are inherent risks associated with investing in securities. Total returns and the principal value of investments in the variable annuity accounts will fluctuate and yields may vary. Past performance is no guarantee of future results. $100 monthly contribution $16,326 $45,565 $97,926 Principal Investment growth Total accumulation $61,926 $21,565 $4,326 $36,000 $24,000 $12, Years 20 Years30 Years

INVESTING AND TAXES MANAGE YOUR RETIREMENT PROGRESS ONLINE

INVESTING AND TAXES MEET RENALDO. HOW IS HE DOING? Assumptions: 6% effective annual interest rate, 15% tax bracket. This illustration is hypothetical and does not reflect the performance of any specific TIAA-CREF account. There is no assurance that your investments will actually earn this rate. This is a hypothetical illustration and is not intended to predict the actual performance of any account and does not reflect deduction of any expenses. Age 46, been in profession 21 years Pays attention to asset allocation Has benefited from staying invested and tax deferral On a monthly basis, he makes this before-tax annual contribution to employer plan $4,000

INVESTING AND TAXES MEET RENALDO. HOW IS HE DOING? Assumptions: 6% effective annual interest rate, 15% tax bracket. This illustration is hypothetical and does not reflect the performance of any specific TIAA-CREF account. There is no assurance that your investments will actually earn this rate. This is a hypothetical illustration and is not intended to predict the actual performance of any account and does not reflect deduction of any expenses. Age 46, been in profession 21 years Pays attention to asset allocation Has benefited from staying invested and tax deferral His tax-deferred accumulations after 20 years are $151,882

INVESTING AND TAXES MEET RENALDO. HOW IS HE DOING? Assumptions: 6% effective annual interest rate, 15% tax bracket. This illustration is hypothetical and does not reflect the performance of any specific TIAA-CREF account. There is no assurance that your investments will actually earn this rate. This is a hypothetical illustration and is not intended to predict the actual performance of any account and does not reflect deduction of any expenses. Age 46, been in profession 21 years Pays attention to asset allocation Has benefited from staying invested and tax deferral His taxable accumulations after 20 years would have been $116,735

INVESTING AND TAXES MEET RENALDO. HOW IS HE DOING? Assumptions: 6% effective annual interest rate, 15% tax bracket. This illustration is hypothetical and does not reflect the performance of any specific TIAA-CREF account. There is no assurance that your investments will actually earn this rate. This is a hypothetical illustration and is not intended to predict the actual performance of any account and does not reflect deduction of any expenses. Age 46, been in profession 21 years Pays attention to asset allocation Has benefited from staying invested and tax deferral After all taxes are paid on Renaldo’s tax-deferred accumulations, tax deferral increased his accumulations by $12,365

ENVISIONING YOUR RETIREMENT INVESTING IN STOCKS CAN PROTECT AGAINST THE EFFECT OF INFLATION ON INVESTMENT RETURNS Source: Ibbotson Associates, Inc. Hypothetical value of $1 invested at year-end Assumes reinvestment of income and no transaction costs or taxes as of 12/31/10. $1 invested at year-end % 5.48% 2.99% $ 2,976 $12 $93 Stocks (S&P Total Return) Bonds (Long-term Government) Cost of Living Stocks Bonds Cost of living Average return

ASSET ALLOCATION IS IMPORTANT IN RETIREMENT TOO *Based on the claims-paying ability of TIAA. The specific asset allocations shown in the model portfolios were generated by Ibbotson Associates, one of the nation’s leading financial advisors. They are based on well-known optimization techniques, using historical return, volatility and correlation data from indices like the Russell 1000 stock index. This optimization procedure is based on assumptions about historical market data, and future market conditions may vary from these assumptions. Conservative 12% 29% 8% 41% 10% ENVISIONING YOUR RETIREMENT Guaranteed* Fixed Income Equities Real Estate Money Market

ASSET ALLOCATION IS IMPORTANT IN RETIREMENT TOO *Based on the claims-paying ability of TIAA. The specific asset allocations shown in the model portfolios were generated by Ibbotson Associates, one of the nation’s leading financial advisors. They are based on well-known optimization techniques, using historical return, volatility and correlation data from indices like the Russell 1000 stock index. This optimization procedure is based on assumptions about historical market data, and future market conditions may vary from these assumptions. Moderately Conservative 32% 24% 8% 28% 8% ENVISIONING YOUR RETIREMENT Guaranteed* Fixed Income Equities Real Estate Money Market

ASSET ALLOCATION IS IMPORTANT IN RETIREMENT TOO *Based on the claims-paying ability of TIAA. The specific asset allocations shown in the model portfolios were generated by Ibbotson Associates, one of the nation’s leading financial advisors. They are based on well-known optimization techniques, using historical return, volatility and correlation data from indices like the Russell 1000 stock index. This optimization procedure is based on assumptions about historical market data, and future market conditions may vary from these assumptions. Moderate 53% 16% 7% 19% 5% ENVISIONING YOUR RETIREMENT Guaranteed* Fixed Income Equities Real Estate Money Market

ASSET ALLOCATION IS IMPORTANT IN RETIREMENT TOO *Based on the claims-paying ability of TIAA. The specific asset allocations shown in the model portfolios were generated by Ibbotson Associates, one of the nation’s leading financial advisors. They are based on well-known optimization techniques, using historical return, volatility and correlation data from indices like the Russell 1000 stock index. This optimization procedure is based on assumptions about historical market data, and future market conditions may vary from these assumptions. Moderately Aggressive 72% 8% 13% 7% ENVISIONING YOUR RETIREMENT Guaranteed* Fixed Income Equities Real Estate Money Market

ASSET ALLOCATION IS IMPORTANT IN RETIREMENT TOO *Based on the claims-paying ability of TIAA. The specific asset allocations shown in the model portfolios were generated by Ibbotson Associates, one of the nation’s leading financial advisors. They are based on well-known optimization techniques, using historical return, volatility and correlation data from indices like the Russell 1000 stock index. This optimization procedure is based on assumptions about historical market data, and future market conditions may vary from these assumptions. Aggressive 85% 10% 5% ENVISIONING YOUR RETIREMENT Guaranteed* Fixed Income Equities Real Estate Money Market

ENVISIONING YOUR RETIREMENT Annuity account options are available through contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Payments from the variable accounts (and mutual funds) are not guaranteed and may rise or fall based on investment performance. Mutual funds do not offer the range of income options available through annuities. Not all income options are available at all institutions or for all contracts. YOU CAN CHOOSE FROM AN ARRAY OF INCOME OPTIONS Cash withdrawals Systematic withdrawals Income for a fixed period TIAA Traditional Interest Only

Annuity account options are available through contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Payments from the variable accounts (and mutual funds) are not guaranteed and may rise or fall based on investment performance. Mutual funds do not offer the range of income options available through annuities. Not all income options are available at all institutions or for all contracts. ENVISIONING YOUR RETIREMENT YOU CAN CHOOSE FROM AN ARRAY OF INCOME OPTIONS Minimum distribution Lifetime income Survivor benefits Transfer Payout Annuity (TPA)

LEAVING A LEGACY Survivor benefits are only part of the story TIAA-CREF Life Insurance can mean passing value to your heirs ENVISIONING YOUR RETIREMENT

MEET KAREN AND JIM: HOW ARE THEY DOING?

ENVISIONING YOUR RETIREMENT MEET KAREN AND JIM: HOW ARE THEY DOING? *Based on the claims-paying ability of TIAA. The specific asset allocations shown in the model portfolios were generated by Ibbotson Associates, one of the nation’s leading financial advisors. They are based on well-known optimization techniques, using historical return, volatility and correlation data from indices like the Russell 1000 stock index. This optimization procedure is based on assumptions about historical market data, and future market conditions may vary from these assumptions. 75% 5% 13% 7% Guaranteed* Fixed Income Equities Real Estate Money Market Recently retired; late 60s, early 70s Still include equities as inflation hedge Karen is planning to take minimum distribution option

5% Recently retired; late 60s, early 70s Still include equities as inflation hedge Karen is planning to take minimum distribution option *Based on the claims-paying ability of TIAA. The specific asset allocations shown in the model portfolios were generated by Ibbotson Associates, one of the nation’s leading financial advisors. They are based on well-known optimization techniques, using historical return, volatility and correlation data from indices like the Russell 1000 stock index. This optimization procedure is based on assumptions about historical market data, and future market conditions may vary from these assumptions. ENVISIONING YOUR RETIREMENT MEET KAREN AND JIM: HOW ARE THEY DOING? 13% 7% 75% Karen stays invested in equities Guaranteed* Fixed Income Equities Real Estate Money Market

PROTECTING AND PLANNING MAKE SURE YOUR BASES ARE COVERED Do I keep a budget? Emergency fund – 3 to 6 months’ living expenses Managing household debt

PROTECTING AND PLANNING “AM I COVERED?” THE NEED FOR INSURANCE Life insurance (permanent, term) Disability income Long-term care Property and liability Excess (umbrella)

PROTECTING AND PLANNING LIFE INSURANCE FROM TIAA-CREF Protecting lives since 1918 Providing security to the families of our customers

PROTECTING AND PLANNING WE CAN HELP YOU SAVE FOR COLLEGE AND OTHER PRIORITES Tax-advantaged 529 college savings and investment plan Ways to save for other major life events

PROTECTING AND PLANNING MEET GEOFFREY AND ERIN: HOW ARE THEY DOING?

PROTECTING AND PLANNING MEET GEOFFREY AND ERIN. HOW ARE THEY DOING? Early-40s; two young children, a third on the way Seek best way to save for college Will have to expand house or move to new one Retirement Protect family College savings Protect property Protect against negligence New home Need TIAA-CREF Employer plan TIAA-CREF SRA (Supplemental Retirement Annuity) TIAA-CREF Roth IRA TIAA-CREF life insurance TIAA-CREF Section 529 savings plan Homeowners insurance Excess liability (Umbrella) insurance TIAA-CREF mutual funds TIAA-CREF Roth IRA (for tax-advantaged withdrawal) Solution

GETTING IT DONE HOW TIAA-CREF CAN HELP PUT IT ALL TOGETHER Retirement planning and advice Solutions and services Investment expertise Online access

RETIREMENT PLANNING AND ADVICE ADVICE AND PLANNING SERVICES – THE ROAD TO A SUCCESSFUL RETIREMENT To stay on track for retirement, you need to make sure that you are: allocated properly to suit your goals saving enough invested in the proper funds for your particular needs

RETIREMENT PLANNING AND ADVICE ADVICE AND PLANNING SERVICES Benefits: Objective advice and asset allocation Unbiased Retirement Consultants Over 90 years of retirement expertise No additional fee to participant for on demand advice service

RETIREMENT PLANNING AND ADVICE Am I on track to reach my retirement goals? Do I need to save more? How should I allocate and invest to reach my goals? How will various options affect my retirement income and wealth? PERSONALIZED RETIREMENT Your Personalized Retirement Planning Report can help answer these questions:

RETIREMENT PLANNING AND ADVICE *Through Ibbotson Associates, a third-party asset allocation provider. ADVICE AND PLANNING SERVICES Benefits: Specific fund recommendations* Personalized, actionable plan High value at no additional cost

GETTING IT DONE *The expense ratio on all mutual fund products and variable annuity accounts managed by TIAA-CREF are generally less than half the mutual fund industry average. Source: Morningstar Direct (June 2011) based on Morningstar expense comparisons by category TIAA-CREF IS HERE TO GET YOU THERE Experience Credibility Expenses among the lowest* Exceptional customer service Shared values

GETTING IT DONE ADDITIONAL SOLUTIONS AND SERVICES TO HELP YOU GET THERE Mutual funds After-tax annuities Personal trust and private asset management Brokerage services

WEALTH MANAGEMENT PERSONALIZED FINANCIAL AND RETIREMENT REVIEW The cornerstone of our financial plan: Will you have enough to retire? What’s the optimal asset allocation? How much should you draw down each year across all your savings?

GETTING IT DONE NOW IS THE TIME TO TAKE ACTION Assess needs Determine action plan Go to website Sign up for accounts, increase contributions Call us to set up an appointment

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The tax information contained in this presentation is not intended to be used, and cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed in this presentation. Taxpayers should seek advice based on their own particular circumstances from and independent tax advisor.

Investment products are not FDIC insured, may lose value and are not bank guaranteed. You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call , or go to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. Annuity contracts and certificates and issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY. After tax annuities and life insurance issued by TIAA-CREF Life Insurance Co., New York, NY. TIAA-CREF Trust Company, FSB provides investment management and trust services. Brokerage Services are provided by TIAA-CREF Brokerage Services, a division of TIAA-CREF Individual & Institutional Services, LLC, members FINRA and SIPC. Advisory services are provided by Advice and Planning Services, a division of TIAA-CREF Individual & Institutional Services, LLC, a registered investment advisor. Supplemental Retirement Annuity (SRA) TIAA Contract form series /CREF Certificate series ; Group Supplemental Retirement Annuity (GSRA) TIAA Contract form series G (GSRAs are not available in all states)/CREF Certificate series CG1250.1; IRA Annuity TIAA contract form series or (not available in all states) or TIAA-IRA-01/CREF Certificate series C or C or CREF-IRA-01; Roth IRA Annuity TIAA contract form series or (not available in all states) or TIAA-Roth-01/CREF Certificate series C or C or CREF-Roth-01. © 2011 Teachers Insurance and Annuity Association – College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017

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