Insurance company fixed (or general) accounts and stable value funds are prevalent across defined contribution retirement plans. Stable value funds often account for a large portion of a plan’s total assets, particularly in governmental retirement plans where they commonly account for 20-40% or more. But, is that a sound and rational choice for most investors? What role should stable value play for a person saving and investing for retirement?
Chief Investment Officer Kip Robbins, CFA, and President Josh Schwartz, AIF, explore these topics.