Lincoln Stable Value vs. money market 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. They both can offer participants current income, stability of principal and liquidity.

The following chart compares the features of stable value investments and money market mutual funds.
 

 

stable value money market funds
Investments

Investments backed by insurance company guarantees, designed for participants of retirement savings plans and typically offered only in tax-qualified retirement savings plans.

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

Investment objectives

These investments offer current income and stability of principal.

These investments provide current income and preservation 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. They’re not 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.

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.

Investment returns

These are based on short- to intermediate-term bonds.

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.


Find out more

This paper explores the similarities and differences between money market funds and stable value investments, including recent regulatory changes imposing restrictions on some money market funds.
Learn about historical performance, the effect of interest rate changes, and the attractive features stable value investments can offer participants.

Download white paper.

Learn more about Lincoln Stable Value solutions.
 

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Call us

To find out how Lincoln Stable Value solutions can help meet your needs, 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.