Designing Balanced DC Menus: Considering Capital Preservation Strategies​​

If Mark Twain were a defined contribution (DC) participant, chances are he would keep some of his savings in a capital preservation strategy. “I’m more concerned with the return of my money than the return on my money” is one of his most famous (and oft-misattributed) aphorisms.

It is a common sentiment, and it explains why c​apital preservation strategies are among the most popular offerings in DC plans. As their name implies, these approaches seek to help participants preserve invested principal; return is a secondary priority. They also can serve an important role in portfolios by potentially generating income, providing liquidity or offsetting riskier investments.

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