TIAA (Teachers Insurance and Annuity Association of America) has provided retirement and insurance services to nonprofit organizations and their employees for over 100 years. Iconic industrialist Andrew Carnegie founded the financial services company with a unique charter. It's required to operate on a nonprofit basis, and that allows it to return its profit to participants and reinvest to grow its business to drive future profit returns.
TIAA has grown into one of the country's largest financial services organizations. It invented the variable annuity in 1952, forming the College Retirement Equities Fund (CREF) to manage the innovative product. It also acquired Nuveen in 2014 to expand its asset management capabilities. The Fortune 500 organization had $1.3 trillion in assets under management (AUM) in mid-2024. It served over 4.7 million individual customers and more than 12,000 institutional clients. It offers a variety of financial products and services, including annuities, 401(k) plans, and 529 plans.
You might be one of TIAA's clients and might be wondering if you can invest directly in the company. Here's everything you need to know about investing in TIAA.
Is TIAA publicly traded?
TIAA isn't a publicly traded company. It was a private company owned by its board of governors. Its charter requires that it operate without profit; instead, it returns profits to participants and reinvests in growing its business so it can grow future participant returns.
When will TIAA IPO?
TIAA didn't have an IPO on the calendar in mid-2024. The financial services company might never go public. Its board of governors owns the organization, which operates as a nonprofit. Unless TIAA's board changes its charter, it wouldn't be suitable as a publicly traded company.
How to buy TIAA stock
You can't buy stock in TIAA. It's a private, nonprofit company. However, you can invest with the company if you work in the nonprofit industries it serves. Those who invest in the company share in its profits because it returns them to participants in its retirement plans.
Meanwhile, even though you can't invest directly in TIAA, you can invest in the financial services industry. Many publicly traded companies provide investment, retirement, and insurance services. Here are some TIAA alternatives investors can consider instead:
BlackRock
BlackRock (BLK -0.03%) is a leading global investment manager. The company had a staggering $10.5 trillion in AUM in mid-2024. It manages mutual funds, exchange-traded funds (ETFs), and other assets for individual and institutional clients. The company's diversified financial product portfolio includes equity, fixed income, multi-assets, alternative investments, and cash management.
Fixed Annuity
The bottom line on TIAA
TIAA has been helping nonprofit organizations and their employees secure their retirements for over a century. While you can't invest directly in the company, those who are eligible can invest with it and participate in its success. That model, where plan participants share in the company's profits, makes it stand out in the financial services industry.
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