Stable Value vs.Money Market

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Tommy
Posts: 173
Joined: Mon Mar 07, 2016 11:47 pm

Stable Value vs.Money Market

Post by Tommy » Sat Nov 16, 2019 3:20 pm

My 401K Offers Stable Value with ER 0.54% and yield 2.15% and Vanguard FMM with ER 0.11% and yield 1.8%.
Looks like from $10000 invested Stable value returns $215 and it will cost $54 - earning $161
MM - returns $180 - $11 ER = $169.
Does my calculation correct? Am I missing something or not count?

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David Jay
Posts: 7890
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Stable Value vs.Money Market

Post by David Jay » Sat Nov 16, 2019 3:46 pm

Yield includes ER, so you can directly compare the 2.15 to 1.8
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

student
Posts: 4648
Joined: Fri Apr 03, 2015 6:58 am

Re: Stable Value vs.Money Market

Post by student » Sat Nov 16, 2019 4:10 pm

David Jay wrote:
Sat Nov 16, 2019 3:46 pm
Yield includes ER, so you can directly compare the 2.15 to 1.8
+1.

JimInIllinois
Posts: 383
Joined: Wed Dec 22, 2010 9:55 am

Re: Stable Value vs.Money Market

Post by JimInIllinois » Sat Nov 16, 2019 9:37 pm

Check the liquidity restrictions on the stable value fund. For ours you can't transfer from stable value to money market, but you can transfer to something more risky like a stock fund. They don't want people jumping in and out of the fund if money market rates spike. It's still likely a fine choice.

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