457 acct - stable value options/core bond index

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gnostic19
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Joined: Mon Feb 27, 2012 4:06 pm

457 acct - stable value options/core bond index

Post by gnostic19 »

About 10 month ago i moved half of my funds in my 457 acct to the MissionSquare PLUS Fund, in anticipation of the market downturn and also being about 1-2 years from retirement. I will have a moderate pension upon retirement so i don't need to be extra conservative with this 457 acct, but i do plan on withdrawing from it to pay for my health care premiums once i retire. This is what that 1/2 - 3/4 of the acct funds will be used for.

The fee for the MissionSquare PLUS Fund is 1.32% (i know ugh, more on this in a bit), and it's benchmark is ICE BoFa 3M Treasury Bills. As of 12/31/22 (latest fact sheet i have access to) the sector allocation was 25% credits, 22% Maturing GICs, 20% mortgage backed and 11% treasuries. Here is a link to the PDF with the various tier holdings...https://accountaccess.icmarc.org/docs/p ... 202302.pdf

When i made this move i was debating between this fund and the MSQ Cash Mgmt fund (invests its assets in Class III of the Fidelity Money
Market Funds Government Portfolio), which has a 1% fee. At the time the PLUS fund seemed a better choice, notwithstanding the higher fee. Now, after re-assessing (something i do way too much)...i want this money in Cash Mgmt Fund. Thing is, i can't move it directly there, i have to move it to another fund for 90 days before i can do that.

I asked our plan advisor for a fund option that was low risk/low fee and he mentioned the MSQ Core Bond Index fund at 0.95% (this is the lowest fund fee available) because the bond mkt outlook is better now than it was in '22, and they also pay dividends. This Core Bond fund invests in the Bloomberg US Agregate Bond Index, with the note that it "typically holds less securities than are contained in the Index".

Question is...is the Core Bond Index fund indeed something i should dive in to with the 1/2 of this account in order to get it over to the Cash Mgnt fund eventually, or are things still too volatile in the Bond market. Also, are there risks to leaving it in the PLUS fund. Am i making too much out of this and should i just leave it in the PLUS fund...or move half to the Core Bond and hedge a bit?

thank you, appreciate any comments/suggestions.
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