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Article: 'Stable Value' Investment Options in 401k Plans Can Be Risky Too.
- Article from:
- Insurance Weekly News
- Article date:
- August 14, 2009
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Stable value investments provide a unique challenge to employers who offer 401(k) plans. They are intended for investors with low risk tolerances, but pose risks employers need to understand and monitor, especially in times of economic uncertainty.
"It is imperative that employers thoroughly understand stable value investment options," said Kent Peterson, an actuary and Director of Investment Services, Securian Retirement. "In some ways, they have a higher degree of responsibility with these investments because the risks are not as obvious to participants."
According to the Stable Value Investment Association, stable value investments preserve capital ...