How Stable Is Stable Value For 401(K)S?
Without a doubt, stable value is experiencing a resurgence of sorts in the wake of money market reform and recent volatility. Pavilion Advisory Group interviewed four major stable value managers (Galliard, JPMorgan, New York Life and Putnam) on the state of the marketplace. Key questions asked were: What major trends did you notice in 2015? […]
New research from Prudential predicts expansion of stable value market
Growing numbers of plan sponsors and intermediaries may be open to embracing stable value in the coming years, according to a new white paper released today by Prudential Retirement, a business unit of Prudential Financial, Inc. (NYSE: PRU). Favorable perceptions of stable value among plan sponsors and intermediaries coupled with the changing regulatory environment for […]
The Stable Value Conundrum
For years, fewer than half of defined contribution (DC) plans have offered stable value funds. It’s not because plan sponsors and plan advisers don’t know about the asset class. And it’s not because they don’t know about stable value’s benefits: most people know the funds offer steady returns and principal protections. Prudential Retirement set out […]
Stable Value Making a Comeback
A recent survey found that 30% of intermediaries who recommend stable value offerings say they are doing so more this year than they did last year, and 35% say they expect that trend to accelerate over the next three years. The Prudential survey of more than 400 plan sponsors and 300 intermediaries (advisors and consultants […]
Simplifying—and Selling—Stable Value
It’s hard to maximize sales and market share when consumers don’t fully understand or appreciate your brand— Imagine that automobile buyers didn’t know that Ferraris are fast, that Jeeps are designed to take on rugged terrain or that a Lexus is likely to deliver above-average reliability. This is something anyone in the stable value business […]
Sequence of Returns Risk: Worse Than You Thought
The stock market downturn that stretched from late 2007 through early 2009 gave recent and soon-to-be retirees a harsh lesson in the dangers of sequence of returns risk. That’s the risk that poor investment returns at or near retirement age will devastate your portfolio and result in you outliving your savings. It makes a strong […]
Stable Value: Overlooked Solution to Generating Retirement Income
Figuring out how best to convert retirement savings to a lifetime of retirement income has become the new holy grail of the retirement industry. Not coincidentally, it’s also of vital interest to the tens of millions of baby boomers who have retired over the past few years or will likely do so in the next […]
The Rise of Robo Advisors
In the nearly two decades since their debut, online investment advisory services have enjoyed modest success in convincing some investors to use them. Now they’ve got a sexy new name—“robo advisors”—and with it perhaps an improved chance of winning customers. Much has changed since industry pioneers like mPower and Financial Engines starting providing online investment […]
“Follow the Yield” for Stable Value Rate of Return Expectation
By Phil Connor, MassMutual When individuals are faced with a personal decision sometimes they’ll resort to that familiar advice of “follow your instinct.” For stable value investments, a phrase such as “follow the yield” comes to mind when endeavoring to determine how the rate of return on the investment may trend over time. Stable […]