Did TIAA-CREF put more or less of my money into CREF Bond Market R1? Was there a reason for doing that? Could I… know that reason?
My 403(b) Account Automatically Rebalanced. Did It Do a Good Job?
Nicole Dieker
159

You can check a previous statement to see if the percentage in Bond Market R1 was higher or lower.

The reason is that the funds change in value at unequal amounts.

For simplicity sake, imagine you originally had $10,000 and selected two funds at a 50/50 allocation. Fund 1 grows 10% a year, and Fund 2 grows 5%. After one year, you will no longer have a 50/50 allocation. Fund 1 has $11,000 and Fund 2 has $10,500 for a total balance of $21,500. TIAA-CREF would rebelance so that $21,500 is once again evenly distributed.

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