White paper, Stable Value: A Risk-Free Dilemma, explores the appropriate use of fixed/stable value funds in defined contribution retirement plans.
If a plan participant wants a balanced portfolio of 60% equities and 40% fixed income, how much of the 40% should be in stable value versus bond funds? What are the relative risks? What about returns? How do stable value and bond funds behave in a diversified portfolio over time?
“Stable value funds frequently hold the largest investment allocation in a participant-directed retirement plan – particularly in a nonprofit or public sector plan, where participation is wholly voluntary,” said Joshua Schwartz, President at Retirement Plan Advisors. “However, RPA’s research shows that a core bond strategy provides better risk-adjusted performance in a balanced portfolio.”
Stable Value: A Risk-Free Dilemma is available now, at no charge, by visiting https://info.retirementplanadvisors.com/stable-value-funds-white-paper
About Retirement Plan Advisors:
A federally registered investment adviser, Retirement Plan Advisors (RPA) specializes in providing plan design, consulting services, and investment advice to public sector employers and employees. With offices across the country, RPA currently serves 650+ governmental retirement plans with over 71,000 participants and $4.3 billion in plan assets.
Published at Wed, 06 Jan 2021 08:00:00 +0000