Join Early Retirement Today
Thread Tools Search this Thread Display Modes
GIC - Stable Value fund
Old 02-19-2006, 08:12 AM   #1
Recycles dryer sheets
Join Date: Jan 2006
Posts: 77
GIC - Stable Value fund

Where does a "Stable Value Income fund" or Guaranteed Income Contract (GIC) belong in an asset allocation? Presume it would take the place of some /all of the bond holdings. We just recently were given this option in our 401K.

Has anyone used them?

Most People are about as happy as they make up their mind to be - A. Lincoln
getoutearly is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: GIC - Stable Value fund
Old 02-19-2006, 12:02 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
Join Date: Mar 2003
Posts: 15,910
Re: GIC - Stable Value fund

Its basically a high yielding money market fund only available in qualified plans. Not a bad choice for MM/bond allocation.

"Neither my companion or I carry firearms on our persons. We depend on the goodwill of our fellow man and the forbearance of reptiles."

- English Bob
brewer12345 is offline   Reply With Quote
Re: GIC - Stable Value fund
Old 02-19-2006, 01:23 PM   #3
Alan's Avatar
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 18,899
Re: GIC - Stable Value fund

I have a portion of my 401(k) in a GIC and I classify it as cash when analyzing my overall portfolio. Unlike bonds the capital is protected so it really behaves much like a MM fund.
Retired in Jan, 2010 at 55
Now it's adventure before dementia
Alan is offline   Reply With Quote
Re: GIC - Stable Value fund
Old 02-19-2006, 02:00 PM   #4
Recycles dryer sheets
Join Date: Oct 2003
Posts: 452
Re: GIC - Stable Value fund

I have most of my 401k in something they call the "Fixed Fund".
Used to be called GIC, the G standing for Guaranteed.
But since it's not really guaranteed, the name was changed after the
insurance industry debacle of some odd years ago.
renferme is offline   Reply With Quote
Re: GIC - Stable Value fund
Old 02-19-2006, 06:14 PM   #5
Full time employment: Posting here.
Join Date: Oct 2003
Posts: 961
Re: GIC - Stable Value fund

I've got a "stable value fund" in my 401(k). Luckily, there is a breakdown of its investments. GIC's from over 20 insurance companies. I'd definitely make sure that the contracts are spread over a number of insurers and they are highly rated.

GIC's and stable value funds could probably substitute for a nominal bond allocation, but IMO aren't a good substitute for TIPS.

- Alec
ats5g is offline   Reply With Quote
Re: GIC - Stable Value fund
Old 02-19-2006, 08:30 PM   #6
Thinks s/he gets paid by the post
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,674
Re: GIC - Stable Value fund

In The Federal Govt TSP retirement plan there is a G Fund which only holds short term (overnight) Govt bonds, it cannot lose money. I have come to appreciate this fund more as I learn more about financial issues. This fund sounds a lot like a stable value fund functionally. As I understand this fund it really helps your portfolio reduce volitility. So if you had selected an AA of 70% equities/30% bonds then you might be able to go say 80% or 90% equities and 20% 0r 10% G/stable value fund as over time the return would be better at the same level of volitility/risk.

T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Withdrawals From Target Retirement Type Fund yakers FIRE and Money 14 02-17-2007 07:01 PM
Why Vanguard does not offer a stable value fund? Spanky FIRE and Money 7 02-05-2007 11:07 AM
Lingo: Stock fund vs Mutual Fund Sam FIRE and Money 9 05-26-2006 10:44 AM
Is There a Good Stable Value Fund? RockMiner FIRE and Money 5 11-24-2004 01:37 PM
Fund Comfort VS Return yakers FIRE and Money 2 11-01-2004 01:58 PM


All times are GMT -6. The time now is 03:41 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.