What is a stable value account?
A stable value fund is a portfolio of bonds that are insured to protect the investor against a decline in yield or a loss of capital. The owner of a stable value fund will continue to receive the agreed-upon interest payments regardless of the state of the economy.
Can you withdraw from stable value fund?
Participant withdrawals and transfers are freely permitted daily according to plan provisions. Stable value funds from The Standard provide participants with full book value liquidity for benefit payments (death, disability or retirement) and transfers to other investment options.
Is stable value fund a good investment?
Stable value funds are an excellent choice for conservative investors and those with relatively short time horizons, such as workers nearing retirement. These funds will provide income with minimal risk and can serve to stabilize the rest of the investor's portfolio to some extent.
What are the risks of stable value funds?
Investing in stable value is subject to many similar risks of investing in fixed income, including, but not limited to, credit risk, default risk, interest rate risk, issuer risk, liquidity risk, manager risk, market risk, regulatory risk, and tax and accounting risk.