The information contained herein is general in nature and is provided solely for educational and informational purposes. It is not intended to provide a specific recommendation for any type of product or service discussed in this presentation or to provide any warranties or legal advice. Stable Value Investments is a division of New York Life Insurance Company.

Debbie Vince is a 20-year veteran in the retirement business. She represents New York Life Stable Value Investments VP DCIO Sales - West

In this episode, Eric and Debbie discuss:

• Cash equivalent options in retirement plans 
• Factors to evaluate when considering stable value funds 
• Should you choose money market or stable value funds? 
• Monitoring, analyzing, and documenting as a fiduciary 

Key Takeaways:

• Stable value funds, along with money market funds and ultra-short bond funds, are the main cash equivalent options available in retirement plans. What sets stable value funds apart is their ability to offer what is typically a bond portfolio experience without the volatility of a bond-type mutual fund, making them an attractive choice for risk-averse investors.
• When considering stable value options, plan sponsors and advisors must evaluate various factors such as performance, portability, benefit responsiveness, and the financial strength of wrap providers. 
• With changing interest rates, the debate between choosing a money market or stable value funds has resurfaced. While some plan sponsors are considering switching to money market funds due to the current inverted yield curve, stable value funds have historically outperformed money market funds over the long term.
• In today's litigious environment, it is essential for 401k plan committees to fulfill their fiduciary responsibility by regularly monitoring and analyzing stable value funds. Documenting due diligence at least once a year, or more frequently during turbulent markets, is crucial.

“Once we start seeing interest rates decline, which the feds have alluded to, that money market rate is going to follow that very tightly, and you're going to see a decrease. If you look at historical charts, what money market does compare to stable value, most of the time, stable value outperforms money market. ” - Debbie Vince

Connect with Debbie Vince:

LinkedIn: https://www.linkedin.com/in/debbie-vince/ 

Connect with Eric Dyson: 

Website: https://90northllc.com/

Phone: 940-248-4800

Email: [email protected] 

LinkedIn: https://www.linkedin.com/in/401kguy/ 

Opinions expressed herein are current opinions as of the date appearing in this material only. You should obtain advice specific to your circumstances from your own legal, accounting, and tax advisors.

Eric Dyson is not affiliated with New York Life Insurance Company.

The information contained herein is general in nature and is provided solely for educational and informational purposes.

It is not intended to provide a specific recommendation for any type of product or service discussed in this presentation or to provide any warranties, financial advice, or legal advice.

The specific facts and circumstances of all qualified plans can vary and the information contained in this podcast may or may not apply to your individual circumstances or to your plan or client plan-specific circumstances.