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Old 06-12-2013, 12:14 AM   #21
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What I recall when I looked at this recently is that Stable Value funds are not permitted by the SEC. the Dept of Labor controls 401(k)'s and allows Stable Value funds.

So the only way you invest is inside a 401(k) or other defined contribution plan.

http://en.wikipedia.org/wiki/Stable_value_fund
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Old 06-12-2013, 05:41 PM   #22
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With the latest corporate takeover I now have access to a stable value fund. (former corporate overlords didn't offer that.) It's run by prudential. The one I've got says 3.2% net interest.

A far cry better than the money market fund with the former 401k plan.

(Unfortunately, the other fund choices are mostly suck-tastic... except the lone vanguard institutional fund.... so my new contributions are going to these two funds and I balance accordingly in my IRAs and taxable.)
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Old 06-12-2013, 07:14 PM   #23
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Quote:
Originally Posted by brewer12345 View Post
Stable value funds are an ideal choice for fixed income allocations at this part of the cycle. If I had access to one I would have all my fixed income exposure there.
+1, me too.
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Old 06-12-2013, 07:17 PM   #24
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I wish I had a stable value fund available to me.
Yeppy. I lost mine when I converted my 401K. The very next day after making that mistake, I tried in vain to reverse it.
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Old 06-12-2013, 07:44 PM   #25
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A 457 is for public employees: it can be rolled over into an IRA, but if one is between the ages of 55 and 59.5, one loses the ability to withdraw fuds without a tax penalty. My standard account has an ER of .25 and has been returning about 2.5%, down from about 5% of several years ago. Another 457 account is less traditional, a DROP account, which had a guaranteed return of 5%, until April of 2012, when the board tied the return to the 10 year treasury yield. When they submitted the plan to the state for approval, about a year or so earlier, I don't think they expected the Treasry yield to drop as low as it did.
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Old 06-12-2013, 09:05 PM   #26
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Attached the prospectus this time for my SVF.
This one had a 3.59% return last year. And a 0.33 expense ratio.
Attached Files
File Type: pdf P01638X503.pdf (158.2 KB, 13 views)
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Old 06-13-2013, 10:57 AM   #27
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My husband has a Fidelity stable value fund - Fidelity Managed Income Porfolio. It returned about 1% last year and will be about the same or lower this year. It appears to return less than most others.
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Old 06-13-2013, 11:13 AM   #28
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Well, now I am wondering if a should convert the majority of my funds in my 457 to stable value so I get to my 50% for total portfolio and then convert the fixed income in my inherited ira and taxable account to mostly my stock funds so I have a 50/50 holistic approach. I would then have to calculate how I would withdraw from these accounts to reach my 2.5% withdraw rate. Any thoughts from this distinguished panel?
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Old 06-13-2013, 09:23 PM   #29
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Well, now I am wondering if a should convert the majority of my funds in my 457 to stable value so I get to my 50% for total portfolio and then convert the fixed income in my inherited ira and taxable account to mostly my stock funds so I have a 50/50 holistic approach. I would then have to calculate how I would withdraw from these accounts to reach my 2.5% withdraw rate. Any thoughts from this distinguished panel?
Since I don't have any inherited IRA's, I'm not sure what the differences are between pulling from that vs the 457. But I presume they're both penalty-free withdrawls but both taxable income, the difference being required minimum timing? If the 457 has better rmd rules, it would make sense to have the stability there, I guess?
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Old 06-13-2013, 09:55 PM   #30
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Originally Posted by ripper1 View Post
Well, now I am wondering if a should convert the majority of my funds in my 457 to stable value so I get to my 50% for total portfolio and then convert the fixed income in my inherited ira and taxable account to mostly my stock funds so I have a 50/50 holistic approach. I would then have to calculate how I would withdraw from these accounts to reach my 2.5% withdraw rate. Any thoughts from this distinguished panel?
The 457 and IRA should be identical for holding fixed income versus stocks, so it works for that. I hesitate about losing stock growth in the 457, given that the markets cooperate. It is relatively easy to sell a stock fund or whatever in the taxable account and buy it in the 457 or IRA to maintain the AA while "moving" cash into the taxable account. Just watch out for wash sale tax rules if you sell at a loss and buy the same fund within 30 days.

So you can do what you're thinking easily enough I think. Just think about growth in your tax advantaged accounts.
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Old 06-14-2013, 07:23 AM   #31
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All stable value funds are not created equal:

My SVF Morningstar Rating shows 1.28% for a 1 year return with a 3.67% category average and a benchmark return of 0.12%. It uses "Barclays US Trsy Bellwethers 3Mon TR USD" for a benchmark. Known expenses will drain most of my taxable accounts. I put emergency money in this fund while I am in the process of retiring, moving, building a new house, and adjusting to a life without kids' tuition and living expenses. I will move it to a better paying fund in a year or two when I have a better idea of my expenses in retirement.
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Old 07-02-2013, 09:23 PM   #32
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DW's 403b has a stable value/fixed income fund that has a rate guaranteed for six months at a time. It was at 3% for the first half of the year, and just announced 3% for the second half. After reading this discussion, I am considering moving a significant portion of our bond allocation into it. Any reason that's a bad idea?
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Old 07-02-2013, 09:46 PM   #33
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Sounds like a no-brainer to me.
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Old 07-02-2013, 10:17 PM   #34
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+1 Wish I had something like that.
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