Quote:
Originally Posted by GenXguy
The "value" of the fund is definitely not stable. It's losing value quickly due to inflation, which is why I'm trying to time my moves out. It's unfortunate they put me in this situation by slashing the interest rate and starting to charge plan administration fees on it after 10+ years at 3% and no fees.
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Okay, yes, like any other fund denominated in dollars, the actual "value" goes down during inflation. Same with MYGAs, savings accounts, CDs, check books, etc., etc. But, then again, it's the same with equity funds that don't expand as quickly as the rate of inflation.
The "stable" in stable value means that the NOMINAL value will not go down. The interest rate WILL fluctuate. If you check the nominal value every day, you won't find the value going down. It will virtually always go up.
People like SVF BECAUSE they don't go down (yes, nominally.) Is that a good reason to buy one? That's something each of us have to answer for ourselves. You're not gonna get 'rich' with an SVF but at least as you're watching your equities drop (maybe) 50% (nominally) your SVF will inch up (nominally).
I have an SVF but don't necessarily recommend SFV for others because YMMV.