If you have a 401(k) plan, then you likely have a great
investment option known as “stable value.” Just in case you haven’t heard of
this great option- and many people have not- stable value is basically made up
of investment contracts from banks and insurance companies with each contract
paying a specific rate of return.
The whole reason that stable value exists is to help
preserve your capital and to provide liquidity while lowering volatility, but
it’s also a truly great way to invest for some people.
You may want to consider stable value investments if you’re
looking for a low risk investment choice and want something safer and more
secure than the stock market. It’s also not a bad idea for people who are
getting close to retirement age and who want to have funds easily available
when they retire. Stable value can also be used nicely as an opportunity fund.
Obviously, there are a lot of great uses for stable value,
as well as benefits. The reduced risk and the nice return on your investment
certainly don’t hurt! However, this option is not right or doable for all
people, which is why you should speak with your financial adviser before making
any big decisions about what to do with your stable value.
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