Shutdown. Now What?


America awoke this morning, Tuesday, October 1, to find that the federal government has indeed shut down all nonessential operations and services as a result of Congress not reaching an agreement to pass a continuing resolution. Negotiations between the House of Representatives and the Senate are expected to continue with the hope that the shutdown will be a short-term situation.

What does the situation mean to you as an investor and to TIAA-CREF?

  • Look beyond the headlines: Although the shutdown has generated urgent headlines, TIAA-CREF’s economists believe the economic impact should be minor. Spending should be restored retroactively whenever an agreement is reached. The markets may experience some volatility, but have also become a bit complacent since similar episodes have ended without significant economic disruption.
  • We’re open: TIAA-CREF remains open and ready to serve its participants at its telephone centers at 800 842-2252.
  • Stay the course! TIAA-CREF has always advocated a long-term perspective in investing. Look beyond the immediate headlines and ask yourself: Does this change my fundamental long-term outlook? It would be hard to argue that it does. Therefore, do not try to time the market or make major changes to allocations. A decade from now, this incident will seem minor in the grand scheme of things.