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Post by yogibearbull on Jul 2, 2022 12:22:34 GMT
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Post by Capital on Jul 2, 2022 14:08:54 GMT
I wish that Stable Value Funds were available to taxable retail accounts; however, I understand that their inherent illiquidity due to their structure makes this somewhat impossible.
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Post by yogibearbull on Jul 2, 2022 14:22:52 GMT
Capital, reason is that there are some limitations on SVs that can be imposed/monitored only within the 401k/403b, but not in IRAs and taxable a/c. Within the 401k/403b, SVs are liquid enough and the SVs count on the fact that most don't trade furiously there. Another thing to keep in mind is that SVs from insurance companies offer better rates than the SVs from brokers/fund families (Fido, Vanguard, etc). The latter tend to rely on large BICs/GICs, or are subadvised by some insurance companies, and offer no guarantees beyond the sponsors claiming to be very conservative and cautious. Insurance co SVs are guaranteed by the insurance co, so check insurance co ratings. A big exception is the TSP G Fund that is guaranteed by none other than Uncle Sam and that is as good as it can get.
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