401k Stable Value Fund Rates?

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pollifax
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401k Stable Value Fund Rates?

Post by pollifax » Tue May 01, 2018 12:24 pm

I'm wondering what the typical rates are for Stable Value Funds in a 401k? I'm becoming annoyed with ours because it has stayed at 1.1% for the past couple of years. We don't have any money in the fund currently, mainly because the interest rate seems pretty paltry to me, especially when there are some savings accounts right now at around 1.5% and short term interest rates have been inching up.

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whodidntante
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Re: 401k Stable Value Fund Rates?

Post by whodidntante » Tue May 01, 2018 12:28 pm

Mine is conservatively managed in that it uses synthetic GICs. Current yield is 2.05% but it changes (or can change) every market day. I see reports of higher yields but the posters don't often say what the fund holds, so the fund may be taking more risk.

You're right to expect more.

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willthrill81
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Re: 401k Stable Value Fund Rates?

Post by willthrill81 » Tue May 01, 2018 12:39 pm

I have an account with TIAA that offers a SVF. Currently, the one that offers full liquidity is paying 3.25%, and the other that requires withdrawals to be made over a nine year period is paying 4.0%. These are the highest rates of any SVF that I've heard of.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

grkmec
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Re: 401k Stable Value Fund Rates?

Post by grkmec » Tue May 01, 2018 12:46 pm

Mine is 3.34%. I was pleasantly surprised how high it was. I believe it resets quarterly.

pollifax
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Re: 401k Stable Value Fund Rates?

Post by pollifax » Tue May 01, 2018 12:57 pm

grkmec wrote:
Tue May 01, 2018 12:46 pm
Mine is 3.34%. I was pleasantly surprised how high it was. I believe it resets quarterly.
Thanks -- would you mind sharing the name of the fund? Ours resets quarterly as well (supposedly). However, it has remained unchanged for many quarters. :annoyed

grkmec
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Re: 401k Stable Value Fund Rates?

Post by grkmec » Tue May 01, 2018 12:59 pm

pollifax wrote:
Tue May 01, 2018 12:57 pm
grkmec wrote:
Tue May 01, 2018 12:46 pm
Mine is 3.34%. I was pleasantly surprised how high it was. I believe it resets quarterly.
Thanks -- would you mind sharing the name of the fund? Ours resets quarterly as well (supposedly). However, it has remained unchanged for many quarters. :annoyed
Sure -- MassMutual Diversified SAGIC II

pollifax
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Re: 401k Stable Value Fund Rates?

Post by pollifax » Tue May 01, 2018 1:06 pm

grkmec wrote:
Tue May 01, 2018 12:59 pm
pollifax wrote:
Tue May 01, 2018 12:57 pm
grkmec wrote:
Tue May 01, 2018 12:46 pm
Mine is 3.34%. I was pleasantly surprised how high it was. I believe it resets quarterly.
Thanks -- would you mind sharing the name of the fund? Ours resets quarterly as well (supposedly). However, it has remained unchanged for many quarters. :annoyed
Sure -- MassMutual Diversified SAGIC II
Thank you.

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Earl Lemongrab
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Re: 401k Stable Value Fund Rates?

Post by Earl Lemongrab » Tue May 01, 2018 1:06 pm

Megacorp is another that uses synthetic GICs. Its rate tends to be close to the TSP G Fund. This quarter, it's 2.65% (G is 2.75%, but it resets monthly).

I have been 50/50 with this and bond index since I devised my portfolio back in 2007. The latter has been more volatile over the years, but the two have remained within a small percentage most of the time.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Nate79
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Re: 401k Stable Value Fund Rates?

Post by Nate79 » Tue May 01, 2018 1:14 pm

T.Rowe Price 401k here.
TRP STABLE VALUE FUND - N
SVF-N Rate is running about 2.04%.

From the plan documents as of 3/31: 30 Day Effective Yield: 2.29%

pollifax
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Re: 401k Stable Value Fund Rates?

Post by pollifax » Tue May 01, 2018 1:18 pm

Thank you all -- this is great information. We are thinking about asking for something that has a better rate, so having a few examples of various funds with higher rates is very helpful.

Day9
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Re: 401k Stable Value Fund Rates?

Post by Day9 » Tue May 01, 2018 2:27 pm

I just reread the section on Stable Value Funds in Larry Swedroe's book The Only Guide You'll Ever Need for the Right Financial Plan and he says "Generally not recommended" though sometimes it is the best choice in a 401k where your only other fixed income choices are high fee actively managed funds. He does say that generally the data shows they have provided higher returns than short term bonds with the same level of risk. But it is very difficult for an individual investor to judge the fund. He gives a list of half a dozen things to check if you really did want to to due diligence. For example a few of the criteria he lists are at least 90% of the vehicle's assets should be in AA or better bonds, it should be clear if the fund is using derivatives or leverage, the vehicle should carry contracts with multiple insurers who should themselves have ratings of AA or better.

I am not able nor interested in doing this level of due diligence, and I have decent fixed income options in my 401k, so I do not invest in stable value funds.
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pollifax
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Re: 401k Stable Value Fund Rates?

Post by pollifax » Tue May 01, 2018 5:46 pm

I agree it's difficult to judge these funds. I suppose I would prefer a short term treasury fund or similar. My goal is to just get a conversation going where the office considers the fact that this stable value fund we have in the plan right now is poor in comparison with whatever else is out there, such as other stable value funds, short term treasury funds, savings accounts, etc. I won't be able to choose a different option, but I can at least start the discussion and then hope a better option might be presented.

2pedals
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Re: 401k Stable Value Fund Rates?

Post by 2pedals » Tue May 01, 2018 6:44 pm

2.8% based on April

madbrain
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Re: 401k Stable Value Fund Rates?

Post by madbrain » Tue May 01, 2018 7:18 pm

My stable value fund is with Galiard. 1.98% 1-year return.

YTD (Daily)* +0.67%

Average Annual Returns

1 Yr +1.98%

3 Yrs +1.82%

5 Yrs +1.67%

Life +1.76%

Not much to be excited about. I'm still invested in it given the fed policy of rising rates this year.

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KSOC
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Re: 401k Stable Value Fund Rates?

Post by KSOC » Tue May 01, 2018 7:32 pm

3.15% (thru June 2018) ER .32 - 401k plan thru Prudential. Part of my bond allocation.
Too soon old, too late smart.

FCM
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Re: 401k Stable Value Fund Rates?

Post by FCM » Wed May 02, 2018 7:56 am

My "megacorp" stable value fund rate is currently 2.4% and has been at that rate for the last few years.

rg422
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Re: 401k Stable Value Fund Rates?

Post by rg422 » Wed May 02, 2018 11:08 am

My 401K has the following...

Standard Stable Value Fund

YTD - 0.58%
1 year - 2.34%
3 year - 2.27%
5 year - 2.33%


ER of 0.18% and guaranteed minimum return of 1%. Rates are adjusted every 90 days.

Engineer250
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Re: 401k Stable Value Fund Rates?

Post by Engineer250 » Wed May 02, 2018 11:19 am

Vanguard Retirement Savings trust. It’s at around 2% and its one year return was just under 2%. Looks like it invests in short term bonds so historically it had times of higher return.

I only use it to park my mega backdoor money before my yearly withdrawal. I do use the G Fund in the TSP as well for a tiny percentage and that just went up to 2.875% for May (whoo).
Where the tides of fortune take us, no man can know.

gweezer
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Re: 401k Stable Value Fund Rates?

Post by gweezer » Wed May 02, 2018 11:24 am

Mine is in a megacorp plan as well:


YTD (Daily)* +0.99%

1 Yr. +3.02%

3 Yrs. +3.04%

5 Yrs +2.94%

10 Yrs. +3.30%

ER 0.36%

nervouscorps
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Re: 401k Stable Value Fund Rates?

Post by nervouscorps » Wed May 02, 2018 11:49 am

My wife's 401k has an option from New York Life SVF that is around 1.9% right now. I wasn't tempted by it, that's just not enough for me to get interested-- I went for total bond market. If the rate goes up maybe I'll dip my toe in.

Mitchell777
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Re: 401k Stable Value Fund Rates?

Post by Mitchell777 » Wed May 02, 2018 12:39 pm

Was just thinking about this. Mine has been at 2% for the past 1, 3 and 5 yr periods (plus or minus 4 basis points). Thought I may see a very small uptick recently since the turnover is very high, but no change (returns show per month - still at 2%). Good bit of government paper in the fund and much of it short to medium term)

Deaconfan
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Re: 401k Stable Value Fund Rates?

Post by Deaconfan » Wed May 02, 2018 4:02 pm

Like many on this board, I own some TIAA Traditional. Mine comes in three “flavors,” and I own some of each. One currently pays 3.25%, the other 4%, the last 4.25%. The first is fully liquid; the two with higher rates have to be withdrawn over 9 years and one day.
Given the paltry rates others have posted here, I feel very fortunate to have these options.
Deaconfan

jalbert
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Re: 401k Stable Value Fund Rates?

Post by jalbert » Wed May 02, 2018 4:17 pm

pollifax wrote:
Tue May 01, 2018 12:24 pm
I'm wondering what the typical rates are for Stable Value Funds in a 401k? I'm becoming annoyed with ours because it has stayed at 1.1% for the past couple of years. We don't have any money in the fund currently, mainly because the interest rate seems pretty paltry to me, especially when there are some savings accounts right now at around 1.5% and short term interest rates have been inching up.
When the Vanguard Treasury MMF is around 1.6% +/- you can see that 1.1% is not worthwhile. SVF crediting rates are all over the map. And crediting rates are usually annual returns with the effect of compounding factored into the rate. Yield is thus even lower than reported crediting rate.
Index fund investor since 1987.

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willthrill81
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Re: 401k Stable Value Fund Rates?

Post by willthrill81 » Wed May 02, 2018 4:35 pm

Deaconfan wrote:
Wed May 02, 2018 4:02 pm
Like many on this board, I own some TIAA Traditional. Mine comes in three “flavors,” and I own some of each. One currently pays 3.25%, the other 4%, the last 4.25%. The first is fully liquid; the two with higher rates have to be withdrawn over 9 years and one day.
Given the paltry rates others have posted here, I feel very fortunate to have these options.
Deaconfan
I haven't heard of the 4.25% option. When I looked at my account yesterday, 4.0% was the highest rate paid out on any of the current contracts.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

student
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Re: 401k Stable Value Fund Rates?

Post by student » Wed May 02, 2018 4:55 pm

willthrill81 wrote:
Wed May 02, 2018 4:35 pm
Deaconfan wrote:
Wed May 02, 2018 4:02 pm
Like many on this board, I own some TIAA Traditional. Mine comes in three “flavors,” and I own some of each. One currently pays 3.25%, the other 4%, the last 4.25%. The first is fully liquid; the two with higher rates have to be withdrawn over 9 years and one day.
Given the paltry rates others have posted here, I feel very fortunate to have these options.
Deaconfan
I haven't heard of the 4.25% option. When I looked at my account yesterday, 4.0% was the highest rate paid out on any of the current contracts.
It is called the TIAA Trad Retirement Choice. The downside is that the floor is 1%. See https://www.tiaa.org/public/investment- ... r=47933637

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teacher
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Re: 401k Stable Value Fund Rates?

Post by teacher » Wed May 02, 2018 5:09 pm

I am surprised to see Stable Value yields as high as reported on this thread. Here's ours, a 401(k) AT&T SV fund through Fidelity:
0.78% YTD
2.32% 1 Yr
2.36% 3 Yrs
2.31% 5 Yrs
2.98% 10 Yrs
The ER is .31%
I can say this for it....It's been pretty stable since we got into the fund in 2014.

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willthrill81
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Re: 401k Stable Value Fund Rates?

Post by willthrill81 » Wed May 02, 2018 5:27 pm

student wrote:
Wed May 02, 2018 4:55 pm
willthrill81 wrote:
Wed May 02, 2018 4:35 pm
Deaconfan wrote:
Wed May 02, 2018 4:02 pm
Like many on this board, I own some TIAA Traditional. Mine comes in three “flavors,” and I own some of each. One currently pays 3.25%, the other 4%, the last 4.25%. The first is fully liquid; the two with higher rates have to be withdrawn over 9 years and one day.
Given the paltry rates others have posted here, I feel very fortunate to have these options.
Deaconfan
I haven't heard of the 4.25% option. When I looked at my account yesterday, 4.0% was the highest rate paid out on any of the current contracts.
It is called the TIAA Trad Retirement Choice. The downside is that the floor is 1%. See https://www.tiaa.org/public/investment- ... r=47933637
Thanks. I've not heard of that 'flavor' of TIAA Traditional before and apparently don't have access to it.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

student
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Re: 401k Stable Value Fund Rates?

Post by student » Wed May 02, 2018 6:15 pm

willthrill81 wrote:
Wed May 02, 2018 5:27 pm
student wrote:
Wed May 02, 2018 4:55 pm
willthrill81 wrote:
Wed May 02, 2018 4:35 pm
Deaconfan wrote:
Wed May 02, 2018 4:02 pm
Like many on this board, I own some TIAA Traditional. Mine comes in three “flavors,” and I own some of each. One currently pays 3.25%, the other 4%, the last 4.25%. The first is fully liquid; the two with higher rates have to be withdrawn over 9 years and one day.
Given the paltry rates others have posted here, I feel very fortunate to have these options.
Deaconfan
I haven't heard of the 4.25% option. When I looked at my account yesterday, 4.0% was the highest rate paid out on any of the current contracts.
It is called the TIAA Trad Retirement Choice. The downside is that the floor is 1%. See https://www.tiaa.org/public/investment- ... r=47933637
Thanks. I've not heard of that 'flavor' of TIAA Traditional before and apparently don't have access to it.
TIAA introduced it several years ago to replace the 3% minimum variety.

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The529guy
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Re: 401k Stable Value Fund Rates?

Post by The529guy » Wed May 02, 2018 11:09 pm

Vanguard Retirement Savings Trust III at 2.12% today

fennewaldaj
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Re: 401k Stable Value Fund Rates?

Post by fennewaldaj » Thu May 03, 2018 12:07 am

The one in my 403b only pays 1.6%.

runner1
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Re: 401k Stable Value Fund Rates?

Post by runner1 » Thu May 03, 2018 6:55 am

I work for a megacorp and the rate on the Stable Value fund is 3.50%; the record keeper is Prudential.

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zaplunken
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Re: 401k Stable Value Fund Rates?

Post by zaplunken » Sun May 06, 2018 4:58 pm

My 401k offered by a financial services corporation has a SVF comprised of GIC. For 2017 the return was 2.27% which I consider good. Getting 3%+ sounds risky, what the heck are they investing in junk paper? I have tracked my SVF for well over 15 years and it never loses nav, the nav just goes up faster or slower monthly but it doesn't vary much monthly ie it doesn't increase a lot. When I retired I left a lot of the money in the SVF as it is unaffected by duration risk so it is the bulk of my FI allocation.

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willthrill81
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Re: 401k Stable Value Fund Rates?

Post by willthrill81 » Sun May 06, 2018 5:07 pm

zaplunken wrote:
Sun May 06, 2018 4:58 pm
Getting 3%+ sounds risky, what the heck are they investing in junk paper?
TIAA, who offers one of the largest SVFs, has not failed to meet their stated obligations once in their history. It's obviously possible that they could fail at some point in the future, but they are very stable and secure as of now. They didn't skip a beat in 2008-2009.

Obviously, the story may be very different with other SVF providers.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

rterickson
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Re: 401k Stable Value Fund Rates?

Post by rterickson » Tue May 08, 2018 4:34 pm

Hartford General Account (MassMutual) 4%

KSActuary
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Re: 401k Stable Value Fund Rates?

Post by KSActuary » Wed May 09, 2018 5:35 pm

Please remember that SVF rates can differ because the advisor and/or recordkeeper can shave the yield for a bigger payout.

Monster99
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Re: 401k Stable Value Fund Rates?

Post by Monster99 » Wed May 09, 2018 6:26 pm

Wow! My 401K SVF really lags most of the posted returns -

YTD - 0.69%
1Y - 1.79%
3Y - 1.60%
5Y - 1.56%
ER - 0.334

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