As we enter into the new year, different trends will come andgo, but the need for a balanced retirement plan will never fade.One retirement product that has stood the test oftime, for good reason, is a stable value fund.

Given recent marketplace volatility, the product can providepeace of mind for plan participants, especially since stablevalue funds can offer strong returns and guarantees in a low-riskenvironment.

Each new year means new opportunities. Whether you’verecommended stable value funds in the past or it’s a newer productfor you, the new year can be a good time to rethink your retirementplanning sales strategy and consider adding different products toyour 2018 investment lineup.

As you evaluate what products to add, here are a few importantpoints to understand about stable value funds and the benefits theproduct can offer your clients and their employees.

Product structure

Stable value funds are a relatively low-risk asset class thatfocuses on capital preservation and liquidity, while providingsteady, positive returns to participants within qualified andnonqualified retirement plans.

The product can offer participants the liquidity andprincipal-protection features of money market products, but withthe higher yields that are comparable with intermediate-termbonds.

This has been especially useful during the low-interest rateenvironment of recent years. Contracts can be issued by banks andinsurance companies and are not subject to the Securities andExchange Commission regulations.

Stable value funds are still able to ensure that participantsreceive book value on any transaction regardless of marketconditions, allowing participants’ investments to safely earnyield.

Now that you’ve piqued your clients’ interest about stable valuefunds, further sell in the product by highlighting these threebenefits that could help increase plan participants’ retirementreadiness.

1. Guaranteed rates with low-riskinvestments

Depending on the carrier, a stable value fund’s creditingrate is typically contractually guaranteed and known toparticipants in advance. The rate is often locked into place everyquarter or at least semiannually. Some insurers even guarantee thatthe crediting rate will never fall below 1 percent.

The promise that the crediting rate will never fall below astated minimum can be an advantage for plan participants who havebeen hurt by financial instability in the marketplace and want apredictable return on investment in 2018. The guaranteed creditingrate can help garner more yield for participants who are able toinvest in stable value funds longer-term, allowing theirinvestments to gradually grow in a safe environment.

2. Daily liquidity regardless ofmarketplace changes

Stable value funds focus on capital preservation and liquiditythat provide constant, guaranteed returns for participants. Forclients that have employees nearing retirement, a conservativeinvestment offering could help ensure participants’ savings areprotected regardless of economic change.

For younger participants who may be paying off student loans, asecure, guaranteed investment option also can be the perfect fit tohelp set them on the road to retirement savings with little riskinvolved.

3. Higher yields with noadditional volatility

Holding steady through marketplace volatility, stable valuefunds continue to be a strong go-to option to provide planparticipants with a guaranteed yield through a low-risk investmentvehicle. Stable value funds are backed by a high-quality,well-diversified portfolio of fixed-income options. These types ofdiversified investments allow the fund carrier to reduce the riskof market volatility and its impact on plan participants’returns.

When it comes to defined contribution options, stable valuefunds can provide safety, liquidity and, most importantly, yield.Because of the product structure and promise of strong guarantees,it may be easy to see why stable value funds can be a retirementproduct worth considering.

Kent Bartell is the director of investment research,Standard Insurance Company (The Standard).