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Current "Stable Value" Fund Returns ?
10-10-2013, 01:56 PM
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#1
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Full time employment: Posting here.
Join Date: Dec 2004
Posts: 699
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Current "Stable Value" Fund Returns ?
Most Megacorp 401Ks have a "stable value" fund. I assume most of these are various insurance contracts.
Two questions:
1. What are these returning today ? My Megacorp's is 2.69% currently.
2. When/if interest rates rise, will the returns on these lag ?
I thought I heard these are "more sticky on the way down" - meaning that when overall interest rates fall, companies keep the contracts with higher returns and benefit. When interest rates are rising, there's these insurance contracts can be cancelled and other contacts purchased with higher current returns.
Thanks !
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10-10-2013, 02:07 PM
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#2
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,169
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Ours is just above 2.6%.
I think ours is based on annuities - so it's sticky in both directions. Higher interest rates now because the fund holds annuities bought back when interest rates were higher... It's been steadily declining in payout for the past few years... I would imagine it would be slow to creep up, but would go up, when interest rates rise again.
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10-10-2013, 02:17 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Posts: 2,777
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I was getting 3.2 percent on my Stab Val as of April of 2013. Haven't checked it since. Years ago it was as high as 5 percent.
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10-10-2013, 02:36 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Aug 2013
Posts: 1,660
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1 Year 2.37%
3 Year 3.05%
5 Year 3.55%
10 Year 4.01%
See attached
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10-10-2013, 03:25 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
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1 Yr 2.19%
3 Yr 2.66%
5 Yr 3.10%
10 Yr 3.80%
Life of Fund 4.44%
Fidelity Standish Stable Value
__________________
FIRE'D in July 2009 at 51...Never look back!
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10-10-2013, 03:46 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,686
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Ours is largely the Invesco Stable Value Portfolio, which is 2.6% as of June 30.
In my plan I see YTD of 0.83.
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10-10-2013, 04:08 PM
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#7
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Recycles dryer sheets
Join Date: Oct 2010
Posts: 113
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1.83% last 12M, 1.34% YTD.
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10-10-2013, 07:35 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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The SV fund is one of the main reasons I left my old 401k open. I don't even use the SV fund in my current 401k.
Old 401k
1yr 3yr 5yr Life of Fund (1978)
2.62% 2.97% 3.16% 4.14%
Current 401k
1yr 3yr 5yr Life of Fund ( 2008)
1.31% 2.06% 2.48% 2.69%
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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10-10-2013, 09:36 PM
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#9
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Full time employment: Posting here.
Join Date: Feb 2008
Posts: 920
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2.5%
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10-11-2013, 03:27 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Dec 2012
Location: Georgia
Posts: 2,240
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The closest thing we have is returning 0.00%.
I really appreciate them carrying the precision out to two decimal places.
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10-11-2013, 05:32 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: The Beautiful Blue Ridge Mountains
Posts: 2,781
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We have two in our plan. One has a 1-year return of 1.02% with an ER of 0.41%; the other has a 1-year return of 0.13% with an ER of 0.16%.
Gotta love those returns and expenses.
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10-11-2013, 12:02 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 1,555
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About 2.5. Currently maintaining them as a large portion of my bond allocation.
__________________
"Growing old is no excuse for growing up."
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10-11-2013, 03:35 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Stable Value Fund in my wife's 401k: 1.1%YTD, 1.49% last 12 months.
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10-11-2013, 03:41 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Oct 2010
Location: irradiated - too close to the nuclear furnace
Posts: 1,294
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I left money in my 401k to take advantage of my Stable Value fund. Annualized it will be 3.15%.
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10-11-2013, 04:08 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,983
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1.24% - 100% Treasuries
__________________
Took SS at 62 and hope I live long enough to regret the decision.
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10-11-2013, 04:12 PM
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#16
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Full time employment: Posting here.
Join Date: Feb 2008
Posts: 920
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Quote:
Originally Posted by seraphim
About 2.5. Currently maintaining them as a large portion of my bond allocation.
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Ditto. We rearranged asset allocations all over the portfolio's tax deferred accounts just to get my wife's 457 having all of the bond slice of the pie, just to be able to stash it in the stable value fund at 2.5%.
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10-11-2013, 04:23 PM
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#17
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Moderator
Join Date: Oct 2010
Posts: 10,656
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I didn't know ours was on the high side until now... 3.5%
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10-11-2013, 04:59 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Yeah, most of these funds are so stable, they hardly move! Or rather, Bernanke won't let them move.
Oh well, it's still better than the bond fund in my wife's 401k, which is down -0.87% YTD, and -0.25% last 12 months. Of course, there are some bond funds that do worse.
There's a poster here who's been 100% in equities. That turns out to be the best move. However, this late in the game, I am not going to chase after US equities. Been moving more into some emerging markets, which have been beaten down bad.
PS. My mixture of I-bonds is 2%YTD, 2.8% last 12 months, and I have more of that than in the stinkin' stable fund.
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10-15-2013, 10:17 PM
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#19
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Recycles dryer sheets
Join Date: Jun 2012
Location: Seattle
Posts: 82
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Just a smidgen under 3.5%. And a healthy % of my current 401k in it since it's the money to use first. The rest of the investment options really blow with this megaCorp employer. If it wasn't for the great match, I'd be after-taxing it at Vanguard.
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10-16-2013, 04:18 AM
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#20
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Recycles dryer sheets
Join Date: Oct 2010
Posts: 113
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You asked if the returns lag the market. Based on observing our GIC fund for the last 30+ years, yes they lag, they follow interest rates but very slowly, in both directions. Ours are insured bundles or mortgages so the slow lag makes sense.
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