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Resources developed to support strategic planning and decision-making by higher education leaders. The Series on Higher Education includes forums, DVDs, books, and other publications focused specifically on issues of critical importance to colleges and universities.
Demystifying Endowments
This report gives a basic understanding of how endowments work. Using national data reflecting a broad range of institutions, the report asserts there is a need for increased flows of philanthropy in light of economic declines and increased attention to donor requests for how gifts should be treated. It also calls into question whether spending rules of college and university endowments need to be altered, with consideration of market volatility. For example, wide fluctuations in endowment values may suggest the need to base spending on a longer period of endowment values to provide less variability in the flow of spending. The report offers important considerations for campus administrators as they think strategically about use of their endowments in light of increased pressure to maintain (or decrease) tuition levels.
(Author: Ronald Ehrenberg, Cornell University, TIAA-CREF Institute Fellow)
How Institutions Affect Academic Careers
This report explores the implications of survey findings about how academics’ views of their careers differ by type of institution. The author suggests that the increasing trend of institutions embracing the model of the American research university, without attendant increases in research support and productivity, will lead to increased career dissatisfaction among academics throughout the system of higher education. Interesting questions about the types of people, with what levels of talent, the academic profession will be able to attract in the future are raised.
(Author: Joseph C. Hermanowicz, The University of Georgia)
Resources developed to help individuals and their advisors make better financial and strategic decisions for themselves and/or their institutions. The Series on Financial Security includes forums and publications focused specifically on issues related to financial planning for retirement and other goals, employer-provided retirement plans and other benefits, and other issues that affect budgets and balance sheets.
Retirement Savers Respond to the Market Meltdown: Avoiding the “Hail Mary Pass” in Higher Education
Data from a recent TIAA-CREF Institute survey of near-retirees (age 50 to 70) in the higher education sector who are saving for retirement indicate realism among this group as they adjust their savings in response to the financial market meltdown. The survey measured the self-reported attitudes and actions of respondents and did not examine actual investment outcomes or objective measures of retirement preparedness. One-half of these near-retirees have changed their retirement savings rate and/or the investment allocation of their retirement savings during the past year in response to the economy and financial markets—11% changed the amount being saved, 28% changed their asset allocation and 13% have changed both the amount they are saving and the investment allocation of their savings.
(Author: Paul Yakoboski, TIAA-CREF Institute)
New Roth IRA Conversion Opportunities
Recent tax law changes create an opportunity to consider converting a traditional retirement account to a Roth account for many who have traditionally been unable to take advantage of this planning strategy due to income limitations imposed on such conversions. Beginning in 2010, these income limitations will be eliminated. This report discusses factors to consider in determining if a conversion from traditional to Roth is a smart move, unwise, or much ado about nothing.
(Authors: William Richenstein, Baylor University; Douglas Rothermich and Alicia Waltenberger, TIAA-CREF)
Converting Assets to Income: What Near-Retirees are Thinking Financial Literacy: Evidence and Implications for Financial Education
Findings from a recent TIAA-CREF Institute survey of higher education employees aged 50 – 70 highlight the value of annuitization as a response to individuals’ concerns about managing longevity risk. The data also indicate a correlation between financial preparedness in retirement and consultation with financial advisors during the pre-retirement years.
(Author: Paul Yakoboski, TIAA-CREF Institute)
Designing Hospital Pensions for the 21st Century: A Risk-Managed Approach
In the current economic climate, budget-constrained employers are reexamining the design, funding, administration and governance of their retirement plans. A 2008 American Hospital Association survey indicated that about 60% of hospitals with DB plans are expecting increased pension costs. But largely missing from the standard approach to pension design is an assessment of the risks associated with any particular plan design. This paper proposes that plan sponsors for both DB and DC plans add a financial risk management process when reconsidering plan design and funding policies. Some of the principal risk areas to be assessed include, for DB plans, long-term funding risk, short-term funding volatility risk and inflation risk; in DC plans, longevity risk, inflation risk, funding risk and investment risk.
(Authors: Rod Crane and Mike Heller, TIAA-CREF; Paul Yakoboski, TIAA-CREF Institute)
Moving from Financial Planning to Financial Life Planning
Financial life planning is an integrated and humanistic approach to address personal financial issues. At the core of financial life planning is the process of “discovery,” with an emphasis on asking meaningful questions. The author explores this type of thoughtful interaction with clients and asserts its importance especially with respect to planning for retirement.
(Author: Elizabeth Jetton, RTD Financial Advisors)
David Breneman, University of Virginia, and TIAA-CREF Institute Fellow, will serve as co-editor of a forthcoming TIAA-CREF Institute book based on the 2009 TIAA-CREF Institute Higher Education Leadership Conference, Smart Leadership in Difficult Times. The conference will take place on November 5-6 and the book will be published in late 2010.
James Hearn, University of Georgia and TIAA-CREF Institute Fellow, was named associate editor of peer-reviewed Educational Researcher. ER is a publication of the American Educational Research Association.
Risa Palm, TIAA-CREF Institute Fellow was named as Georgia State University’s Senior Vice President for Academic Affairs and Provost. Prior to this appointment, she served as Provost and Vice Chancellor for Academic Affairs for the State University of New York (SUNY) System.
Luis Viciera, Harvard Business School and TIAA-CREF Institute Fellow, was appointed to the Financial Accounting Foundation’s Board of Trustees.
The TIAA-CREF Institute is proud of its affiliation with some of the best minds through the TIAA-CREF Institute Fellows Program. Week after week, Fellows are featured in publications across the country providing quotes, opinions and analysis in their fields of expertise. Throughout this past quarter, the Institute saw nearly half of its Fellows quoted in the media. We congratulate all our Fellows for being important contributors to our country’s thought leadership, and highlight some notable clips below:
Annamaria Lusardi, Dartmouth College, “What Works in Financial Education,” BusinessWeek. According to Professor Lusardi, financial literacy is just as important today as learning how to read and write. Fellows Robert Clark, North Carolina State University, and Olivia Mitchell, The Pennsylvania State University, were also quoted in this special section on financial education and literacy.
Richard Thaler, University of Chicago, “The Price is Not Always Right and Markets Can Be Wrong,” The Financial Times. In an opinion piece, Thaler debates whether the view on efficient market hypothesis should be challenged in light of the financial market downturn.
Jack VanDerhei, Employee Benefit Research Institute, “Your 401(k): Getting Back What You Lost,” CNNMoney.com. VanDerhei provided commentary and analysis on 401(k) balances outperforming stocks in the past 18 months.
Generational Shockwaves – Implications for Higher Education
Part of the TIAA-CREF Institute Series on Higher Education, this book is based on the TIAA-CREF Institute 2007 Higher Education Leadership Conference. It sheds light on managing the melding of generations – Boomers, Generation X, and Millennials – within higher education, and examines relevant risks and opportunities for consideration by campus leaders and researchers.
The book’s editors are Donald E. Heller, Professor of Education, Senior Scientist, and Director of the Center for the Study of Higher Education at The Pennsylvania State University and TIAA-CREF Institute Fellow, and Madeleine d’Ambrosio, Vice President and Executive Director, TIAA-CREF Institute.
To request a copy of this book, please send a message with your mailing address to aollen@tiaa-cref.org.
Other books in the Series available to you include:
Transformational Change in Higher Education: Positioning Colleges and Universities for Future Success
The New Balancing Act in the Business of Higher Education
Books are available on a first come, first served basis. Please specify which book(s) you would like to receive.
