TIAA vs. Fidelity — Which Is Better for Your 403(b) at Mid-Career?

Feeling Stuck Between Two Retirement Giants?

If you’ve ever logged into your retirement portal and stared at “TIAA” on one side and “Fidelity” on the other, wondering which is the better home for your hard-earned contributions, you’re not alone.

Most university employees are offered both options, but very few actually know the differences. And if you’re in your 40s — already mid-career — you might be especially worried that picking the “wrong” one will hurt your chances of catching up before retirement.

Here’s some good news: both can be excellent. The “better” choice depends on your goals, preferences, and how you want your money to work for you.

Fidelity: The Big Buffet

Fidelity offers a wide menu of investment options — mutual funds, index funds, and even target-date funds — making it easy to tailor a portfolio to your preferences.

Strengths:

• Low-cost index funds — great for long-term growth with minimal fees

• Wide range of choices — from conservative bond funds to aggressive stock funds

• Easy to rebalance — adjust allocations quickly if your strategy changes

Potential Drawbacks:

• Too much choice can overwhelm you into inaction

• Without guidance, you may accidentally pick funds that overlap too much or carry higher fees than necessary

  
  

Best for: Investors who want flexibility, lower costs, and the ability to fine-tune their portfolio over time.

TIAA: The Curated Menu

TIAA offers a smaller, more curated selection of about 50–60 funds. But it also has some unique options you can’t get at Fidelity:

• TIAA Traditional Annuity — offers guaranteed income in retirement (like a personal pension)

• TIAA Real Estate Account — invests directly in commercial real estate, offering diversification beyond stocks and bonds

Strengths:

• Stable, income-oriented options for retirement

• Simpler choices mean less decision fatigue

• Historically strong performance in certain specialty accounts

  
  

Potential Drawbacks:

• Liquidity rules — some funds, especially annuities, may restrict how and when you can move money out

• Fewer index fund options compared to Fidelity

Best for: Investors who value stability, predictable income, and less hands-on management.

Why Not Both?

Here’s the secret most people don’t know: you don’t have to choose one over the other. You can use Fidelity for growth-oriented investments (like stock index funds) and TIAA for stability (like the Traditional Annuity or Real Estate Account).

At Provizr, we often manage TIAA and Fidelity accounts side-by-side as one portfolio — without transferring your funds or changing account numbers. That way, you get the best of both worlds while keeping your retirement savings exactly where they are.

The Bottom Line for Mid-Career Catch-Up

If you’re in your 40s and feel behind, the goal isn’t to find “the perfect provider.” The goal is to make what you already have work smarter:

• Avoid high-fee funds that drain your returns

• Pick a balanced mix of growth and stability

• Rebalance regularly so your portfolio stays on track

• Use both platforms if it helps you get the mix you need

You’re not starting from scratch — you’re optimizing. And that’s how you close the gap faster.

Not sure how to split your investments? Our free Provizr Blueprint can show you exactly how to use TIAA and Fidelity together to get caught up.