Stable value is usually offered by a plan sponsor in a defined contribution plan as a low risk investment that focuses on capital preservation and liquidity, while providing steady, positive returns to a plan’s participants. This may make it appropriate for a more conservative participant seeking current income with low volatility, a participant with a short- to intermediate-term investment horizon, or for a participant seeking a higher yield than other principal preservation options. Alternatively, stable value may make sense for an individual seeking diversification and drawdown protection by pairing stable value with more aggressive investments. Lastly, some people prefer capital preservation strategies like stable value when there is significant stock market volatility or economic uncertainty. However you may use stable value in your savings and investment strategy, please be aware that all investments have risk, including stable value, and there is no certainty that an investment will achieve its objectives.
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