This month, the nonprofit Stable Value Investment Association (SVIA) began posting one or more informational videos each week, in which its members, representing major financial institutions, discuss a range of topics. The first video focuses on defining stable value funds; others will cover the benefits of stable value funds, their performance history and comparisons with other conservative investment options, etc.
SVIA, whose mission is to educate the public about the importance of saving for retirement, will post 24 of these short videos over the next nine weeks. The organization highlights the contribution stable value funds can make toward a financially secure retirement. The funds are found only in tax-qualified defined contribution (DC) plans, such as 401(k), 403(b) and 457 plans, and invest in short- to intermediate-term bonds, whose investment returns are then protected by investment contracts that help stabilize fund returns and value over time.
“The new year is a great time to reevaluate your retirement portfolio, and, thanks to the help of our members, we are able to educate investors and financial professionals on an investment option they may know little about,” says Gina Mitchell, president of the SVIA. “Currently, 160,000 defined contribution plans offer stable value funds, making this asset class a core investment in most plans, and it is important to understand its unique characteristics.”
The videos may be seen on the SVIA website or on YouTube.