BlueberryPie
Recycles dryer sheets
- Joined
- Feb 17, 2021
- Messages
- 263
I have access to a Stable Value Fund in my 401(k) that guarantees a 2.25% return for the first quarter of 2021, then change quarterly.
Currently, bonds are hovering around 1% and could go lower with inflation threat, but with interest rates so low, there is little room for them to fall even lower.
So does it make sense for me to move my bond allocation into the Stable Value fund until the Bond return exceeds whatever the current Stable Value return is at the time?
If yes, since my portfolio is mostly split between a 401k and an IRA, should I "transfer" all the fixed income my moving most of the 401k into stable value and most of the IRA bonds into stocks to maintain my Asset Allocation (65/35)
Currently, bonds are hovering around 1% and could go lower with inflation threat, but with interest rates so low, there is little room for them to fall even lower.
So does it make sense for me to move my bond allocation into the Stable Value fund until the Bond return exceeds whatever the current Stable Value return is at the time?
If yes, since my portfolio is mostly split between a 401k and an IRA, should I "transfer" all the fixed income my moving most of the 401k into stable value and most of the IRA bonds into stocks to maintain my Asset Allocation (65/35)