Stable Value investments vs. money market mutual funds

Lincoln Stable Value investments offer stability, liquidity and yield. See how they can provide an attractive alternative to money market mutual funds.

Explore the difference

Stable value investments and money market funds often have similar investment objectives. Both can offer participants current income, stability of principal and liquidity.

Features of typical stable value investments and money market mutual funds in retirement savings plans:

 

stable value money market funds
Investments

These investments are backed by insurance company guarantees, designed for participants of retirement savings plans and often offered only in tax-qualified retirement savings plans.

These mutual funds that hold very short-term money market instruments and are available for tax-qualified retirement savings plans, IRAs and other savings accounts.

Investment objectives

These investments provide current income and stability of principal.

These investments provide current income and stability of principal.

Safety

Principal and interest are guaranteed by the issuing insurance company. Guarantees are subject to the claims-paying ability of the issuing company. These investments aren't covered by federal deposit insurance.

Although money market funds seek to maintain a value of $1.00 per share, they don’t have guarantees and aren’t covered by federal deposit insurance. Institutional share classes have floating net asset values.

Liquidity

Participants have daily liquidity for participant-related requests based on plan provisions. Some restrictions, such as a waiting period, may apply for participants who wish to transfer into competing investment options.

Participants have daily liquidity based on plan provisions. Retail and institutional share classes can have liquidity fees and redemption gates that allow suspension of redemptions for up to 10 business days when liquidity falls below 30%.

Investment returns

These are based on short- to intermediate-term bonds. Some stable value investments can also provide a guaranteed minimum interest rate.

These are based on short-term securities, such as certificates of deposit, commercial paper, and Treasuries.

Costs

Fees are typically based on a spread determined by the issuing insurance company.

Fees are expressed as an expense ratio and are based on the expenses of the mutual fund.

 

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Call us

To find out how Lincoln Stable Value solutions can help you support positive retirement outcomes, call our Sales Desk at 855-533-2170.

The Lincoln Stable Value Account is a fixed annuity issued by The Lincoln National Life Insurance Company, Fort Wayne, IN. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so.


For contracts issued in New York, the Lincoln Stable Value Account is a fixed annuity issued by Lincoln Life & Annuity Company of New York, Syracuse, NY.