Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Stable-Value (SV) Rates, 10/1/24

Stable-Value (SV) Rates, 10/1/24

TIAA Traditional Annuity (Accumulation) Rates
Rates down by 25 bps; released early.
Restricted RC 5.00%, RA 4.75%
Flexible RCP 4.25%, SRA 4.00%, IRA-101110+ 4.25%
(TIAA Declaration Year 3/1 - 2/28)

TSP G Fund 3.875% (previous 4.000%).
https://ybbpersonalfinance.proboards.com/post/1676/thread

Comments

  • We sold the bulk of our stable value fund before Powell announced September’s rate cut. It provided a respectable return and stability through 2022. Now it the tiime to move on elsewhere.
  • People know that rates are falling, but a picture is worth 1,000 words. So, in the chart linked,

    The main chart is 3m T-Bill and m-mkt track those with small lag.

    The bottom frame shows 10y T-Note that SVs (TIAA Traditional, etc) tracks, also with some lag.

    Scale is 10x the rate.

    https://stockcharts.com/h-sc/ui?s=$IRX&p=D&b=5&g=0&id=p71662440404
  • @Sven Would you mind telling where you moved to ? I'm thinking I'll keep rolling CD's & T-bills , while adding to some of the MF's I own. Looking a few years back & I can remember collecting 3% on a two year CD.
  • We moved to DODIX (core plus bond), BND (total bond index), and PYLD (multi-sector bond ETF) over 6 months. All of them are intermediate-term investment grade bond funds. Short term T bills have been falling below 5% yield since July this year and it is likely to reach 4% by year end. That is the reinvestment risk we face when FED cut rates. I think intermediate term is the sweet spot now for bonds as more rate cuts are coming through next year.
Sign In or Register to comment.