The broader policy goal is to create a currency of stable value, free of human manipulation.
To prevent yield chasing, most stable value funds prohibit transfers to similar options, such as a money market or short-term bond fund.
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Pooled stable value funds, more common at larger companies, use multiple insurers.
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Plus, stable value funds have steadily outperformed money markets for two decades.
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Often, you can buy just 10 to 12 types of investments, ranging from cash-like stable value funds to bonds and a collection stock funds.
But half of 401(k) participants have another, intriguing choice for a safe haven: stable value funds, which returned 2.36% on average over the past year.
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Note that stable value funds are mostly available only in 401(k)s.
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This added protection allows investors to trade in and out at a relatively stable value rather than at the underlying portfolio's actual market value, which can bounce around.
Moreover, not all stable value funds are created equal.
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Any bond investor will tell you that, assuming a currency of stable value such as is provided by a gold standard system, yields on high-quality debt will tend to decline in a recession.
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Investment Options and Advice: Your retirement plan may offer unique investment options like stable value funds and low cost institutional shares as well as investment education or advice services at no additional cost to you.
Money manager Dwight Asset Management, for example, now is considering changes in its asset mix, such as boosting allocations to government securities, "to appease the demands of some of the wrap providers, " says Matt Gleason, head of stable value.
Instead, you have to move your money first to, say, a stock fund, for 90 days or so. (Cash withdrawals have no waiting periods.) And in the rare case that your employer ends its participation in a stable value fund, your money might be held for up to 12 months (still earning a return) as the fund unwinds.
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Money should be stable in value, just as measurements of distance or time are stable.
Strong money that is stable in value is much demanded as a ticket used to exchange real wealth, and if the euro had a stable definition, it would quickly trump the dollar.
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Stable-value accounts are at their most valuable in a period of rising interest rates.
Stable-value funds typically consist of a diversified bond portfolio combined with bank or insurance-company "wrap" contracts.
Holders of money-market funds would also see their accounts grow, although not as much as stable-value accounts.
The average stable-value fund delivered 3.1% last year, down from 4.6% in 2008, according to Hueler Cos.
American innovation and productivity, underscored by low taxes and stable monetary value, have attracted massive capital flows.
Currencies should be stable in value, just as an hour has 60 minutes, a foot has 12 inches.
Some employers are re-evaluating their retirement plans' stable-value options in the wake of poor performance during the financial crisis.
Gold has historically served as the measure meant to make the tickets in our pockets most stable in value.
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These were caused for all manner of reasons, none of which include a currency that was stable in value.
It is the best way to achieve the goal of stable monetary value.
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Investors should note that generally there are restrictions on the ability to shift money out of stable-value accounts into competing low-risk accounts.
Stable-value funds are designed to deliver steady performance and protect against losses.
According to an investor alert issued by FINRA, the securities industry self-regulator, many REITs were sold to people who were promised stable-value products.
All of the above in mind, perfect money is money that is stable in value, thus the need for gold to define it.
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