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 investment price volatility, or for a participant with a short- to intermediate-term investment horizon, or for a participant seeking a higher yield than money market investments have provided over time.* Alternatively, stable value may make sense for an individual seeking diversification who is interested in balancing other, more aggressive investments with a lower-risk investment. Lastly, some people prefer capital preservation strategies like stable value when there is significant stock market volatility or economic uncertainty. However you may determine to use stable value in your savings and investment strategy, please be aware that all investments have risk, including stable value, and there is no guarantee that any investment will achieve its objectives.
*Past performance is not a guarantee of future results.