So many 401(k) plans and plan participants have fallen in love with these products without truly understanding how they work, especially how they can benefit the companies offering them at the plan participant’s expense. This Morningstar article by Scott Simon provides an excellent analysis.
Source: http://www.morningstar.com/advisor/t/113861786/stable-value-funds-in-the-litigation-crosshairs.htm
About investsense
I am an ERISA/securities attormey, CFP Emeritus, and Accredited Wealth Management Advisor. I am also a former securites compliance director, I provide forensic investment analyses to help 401(k)/403(b) plan sponsors and other investment fiduciaries avoid legal liability exposure and protect their financial well-being. I am the creator of the Active Management Value Ratio metric, which analyzes the cost-efficiency of investments for investment fiduciaries and attorneys.
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