Stable Value: An education option for 529 plans

Stable Value has long played an important role in the retirement savings market. Stable Value’s benefits also extend to 529 plans, whether used as an age-based, risk-based or individual option.

What is Stable Value?

Stable Value is an asset class built for safety, liquidity and a competitive return. It provides a unique combination of benefits: 

  • Principal preservation
  • Stability and steady growth in principal and earned interest
  • Returns similar to intermediate bond funds with the liquidity of money market funds1

Why Stable Value for 529 plans?

Stable Value’s characteristics and track record make sense for 529 savers in a number of ways:

  • Savers’ investment time horizon may be short, making principal risk mitigation crucial (e.g., during the college years, when the focus is on preserving principal)
  • Stable Value’s book value feature ensures the money will be there when investors need it
  • It’s a low-risk investment option with steady, attractive returns
  • As an asset class, Stable Value has performed consistently during rising rate environments
    and financial crises

 

1 Money market funds are diversified. Stable Value allows withdrawals at book value for benefit-responsive withdrawals.

For Compliance use Only:1009834-00001-00

For Compliance use Only: