PRU GIA

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Topic Author
GordonG
Posts: 64
Joined: Mon Mar 23, 2015 2:24 pm

PRU GIA

Post by GordonG » Wed Jan 10, 2018 11:23 am

I see this guaranteed interest account from Prudential is one option in my 403 plan. What is the deal with something like this? Is it something to consider over a regular bond fund?

I have a very basic portfolio through my company retirement plan, consisting of passively-manged index funds with about 85% in a stock fund and 15% in a bond fund. The only choice I have for a passive, index bond fund is VBMPX, which has not shown impressive results lately, but I guess that is just par for the course with most bond funds at the moment?

b42
Posts: 337
Joined: Thu Apr 11, 2013 7:00 pm

Re: PRU GIA

Post by b42 » Wed Jan 10, 2018 11:33 am

Do you have some more information about the guaranteed interest account?

Your current option of Total Bond Market Index Fund Institutional Plus Shares (VBMPX) (Expense ratio of 0.03%) is a good choice, and I'd stick with it.

Topic Author
GordonG
Posts: 64
Joined: Mon Mar 23, 2015 2:24 pm

Re: PRU GIA

Post by GordonG » Wed Jan 10, 2018 12:18 pm

b42 wrote:
Wed Jan 10, 2018 11:33 am
Do you have some more information about the guaranteed interest account?

Your current option of Total Bond Market Index Fund Institutional Plus Shares (VBMPX) (Expense ratio of 0.03%) is a good choice, and I'd stick with it.
This is all I could find. Right now the guaranteed rate is 3%, but I'm sure they change that based on interest rates?

https://nb.fidelity.com/public/workplac ... mmary/OJ4Q

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