There is no right way to allocate your TIAA-CREF contributions. Factors you'll need to consider include performance differences among the TIAA and CREF accounts, diversifying to lower your risk, the effects of inflation, your life expectancy and what income you will receive from Social Security. Because retirement investing is a long-term proposition, the goal for most people will be steady growth or a combination of growth and income.
Most experts agree that long-term growth can be achieved best by investing in stocks.
Remember that returns from the CREF variable investments fluctuate and there are no guarantees. You probably also will want some of your retirement savings in TIAA's traditional annuity, because it guarantees principal and interest while providing the opportunity for extra earnings. A steady course, using a diversified combination of asset types and approaches, may be the best strategy. Your attitude toward risk is vitally important. Investment risk relates to the uncertain nature of the prices of securities.