What happens when you compare the dates for 2010-2016?Well, here we are, nearly 1-3/4 years later, and my SVF is still lagging far behind the Vanguard taxable MM funds.Talk about a lag!Code:
Vanguard MMFs Stable Value FundDate of OP: 3.6% 2.36% 1/2023: 4.23 2.43 3/2023: 4.75 2.52 6/2023: 5.05 2.68 9/2023: 5.28 2.68 12/2023: 5.30 2.67 3/2024: 5.28 2.91 6/2024: 5.29 2.92 8/2024: 5.28 3.03
Is there really any reason not to view this cynically as just one more greedy cash grab by the third party administrator? Nearly 2 years later, the SVF is still paying 2.25% less than a taxable MMF.
Sure am glad I didn't hesitate in liquidating the SVF holding in favor of the MMFs. Not sure when, if ever, the SFV rate will be competitive again.
SVFs contain plenty of GICs (guaranteed investment contracts) and participants do not get to see the ‘secret sauce’ of the contract structure. This is normal and I have had money in a SVF since 1988 and still use it in retirement as a great staging place for rebalance and annual distribution. Length of expiration of the contracts causes a lag in the income yield and that is expected.
Did anyone gripe when SVFs were returning nearly 2% while other short-term fixed income instruments were returning 0.0000001% in income? Nope.
Statistics: Posted by Hacksawdave — Wed Aug 07, 2024 5:01 pm — Replies 48 — Views 4704