AFTER THE FALL:INVESTING FOR RETIREMENT IN A POST-CRISIS MARKET

Brett Hammond, Chief Investment StrategistOctober 1, 2009Oberlin College

GROSS DOMESTIC PRODUCT1

Source: Bureau of Economic Analysis

2INTEREST RATES

Source: Bloomberg

3INFLATION

Source: Barclay’s Capital

4JOB LOSSES

-8000

-7000

-6000

-5000

-4000

-3000

-2000

-1000

0

1/08 4/08 7/08 10/08 1/09 4/09 7/09

Months

in t

ho

us

an

ds

Cumulative Monthly

Source: Bureau of Labor Statistics

5SAVINGS RATE

Source: Bureau of Economic Analysis

6HOUSING

Source: Global Insight

COMMERCIAL REAL ESTATE7

Source: NCREIF

8COMMODITIES

Source: Global Insight

9EQUITIES

U.S. Equities Market Total ReturnsRussell Indices

12/31/2008YTD

8/31/2009YTD

Russell 3000® Index -37.31% 16.32%

Russell Midcap® Index -41.46% 25.51%

Russell 2000® Index -33.79%% 15.75%

S&P 500 -37.00% 14.97%

Dow Jones Industrial Average -31.93% 10.79%

NASDAQ Composite -42.21% 28.30%

FTSE NAREIT Equity REIT -39.83% 9.97%

Source: Global Insight

01FIXED INCOME

Fixed Income Market Total ReturnsBarclays Capital

12/31/2008YTD

8/31/2009YTD

U.S. Aggregate 5.24% 4.62%

U.S. Government 12.39% -1.94%

U.S. Credit -3.08% 12.90%

Municipal Bond 10-Year 1.52% 7.85%

U.S. TIPS -2.35% 7.22%

Global Emerging Markets -16.16% 26.59%

Source: Barclays Capital

THE VALUE OF THE DOLLAR

Source: Morgan Stanley

PERSONAL INCOME

Group Employment Share Earnings Growth

Not High School Graduate 9.1% -0.1%

High School Graduate 28.8% -3.9%

Some College 27.9% -7.8%

College Graduate 21.8% -5.6%

Masters 8.9% -7.0%

Ph.D. 1.6% -2.2%

MBA, JD, MD 2.0% 5.6%

Source: Bureau of Labor Statistics

1 You have to save to have savings

THE NEW RULES OF INVESTING

2 You need a truly well-diversified portfolio

3 Understand your risk tolerance

4 Slow and steady wins the race

5 The goal is to replace income

6 Rely on a trusted advisor

04/12/23 21

IT’S NOT JUST “AFTER THE FALL” THAT’S IMPORTANT

Investments in variable annuities and mutual funds are subject to market risk and other risk factors.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log on to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing.

This material has been prepared by and represents the views of Brett Hammond, and does not reflect the views of any TIAA-CREF affiliate. These views may change in response to changing economic and market conditions. The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service.

TIAA-CREF Asset Management is a division of Teachers Advisors, Inc., a registered investment advisor and wholly owned subsidiary of Teachers Insurance and Annuity Association (TIAA). TIAA® personnel in its investment management area provide investment advice and portfolio management services through the following entities: Teachers Advisors, Inc., TIAA-CREF Investment Management, LLC, and Teachers Insurance and Annuity Association® (TIAA®). TIAA, TIAA-CREF, Teachers Insurance and Annuity Association, TIAA-CREF Asset Management and FINANCIAL SERVICES FOR THE GREATER GOOD are registered trademarks of Teachers Insurance and Annuity Association.

TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.

©2009 Teachers Insurance and Annuity Association-College Retirement Equities Fund, New York, NY 10017

C45732