I have a some 401k funds in a Stable Value Fund at Fidelity. It's showing 2.12% YTD returns. I'm losing to inflation here. Should I move those funds (Fidelity allows this with BrokerageLink) into a money market fund?
I assume the MM is outside the 401k.
What is the history of your SV fund in terms of yield?
I have an SV fund which is currently at a net 4% yield, but for many years it was way above any mm fund, so for me I will keep it for now.
1 Yr
+2.61%
3 Yrs
+2.24%
5 Yrs
+2.37%
10 Yrs
+2.38%
My plan allows a certain percentage of funds to be invested outside the company plan sponsored funds. You can buy stocks etc.
Yes. And this lag provides arbitrage opportunities if your plan allows. Stable value funds will likely generate lower than market yield for some time so MM funds or short term treasuries make more sense now.My stable fund tends to move toward market rates but with a big lag. It's good on the downside but not so much on the rise.