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Investment Options (403b)

Different investments with various objectives and management styles perform differently in the market. You may view the historical returns of RIC core provider funds here. Each core provider offers one or more of the following products*:

Mutual Funds (for a list of all funds, see 403b At-A-Glance)
Fixed Rate Accounts (guarantees)
Self-Directed Brokerage Account

It is important to note that inactive provider products are not monitored by the State of Iowa and may not meet the basic plan requirements for performance and cost. You may want to compare your investments with those being offered by RICs active providers. Review reasons to consider an exchange.

*Please note: fixed rates and variable rate fund returns are not guaranteed by the State of Iowa or the US Government and are not FDIC insured. Guaranteed rates are insured by the issuing investment provider. These rates are updated on our website quarterly. One or more of the active providers may change rates more frequently than quarterly. To obtain the most current guaranteed rate information, please contact the active provider directly.

Mutual Funds

A mutual fund is a pool of stocks, bonds, cash, or other securities professionally managed to meet a common objective (annuities refer to these as "sub accounts"). Your contributions purchase shares of a portfolio with many other investors; shares are purchased at a specific price per share; the price fluctuates in the market. Mutual funds are available in a variety of investment categories including, but not limited to:

  • Bond funds
  • Balanced funds
  • Target date/Life stage/asset allocation funds
  • Large, Mid, and Small cap stock funds
  • Total US stock market index funds
  • International/Global funds
  • Real estate funds

Mutual fund returns are not guaranteed by the State of Iowa or the US Government and are not FDIC insured. Past performance is no guarantee of future results.

 

 

Fixed Rate Accounts

A fixed rate account is an investment option that provides guarantee of principal and rates of return. Principal and earnings in these fixed rate accounts are guaranteed by the provider (and insured by Iowa state law up to $250,000 per investor). Current rates are updated on our website periodically. For the most accurate rate information contact the providers directly.

Fixed rate guarantees

If your insurance company fails, the maximum amount of protection provided by Iowa Life & Health Insurance Guaranty Association for fixed accounts that are guaranteed by general assets of the insurance company is $250,000. This is the case for fixed accounts offered by MassMutual, VALIC, and Voya.

With regards to funds held in an insolvent insurance company’s separate account, loss of those funds would not be covered by the Guaranty Association. It should be recognized that funds in the insolvent insurance company's separate account are not subject to the claims of the insolvent insurer’s creditors, and therefore it is anticipated the values in that account would not be affected by the insolvency of the insurer. A separate account may increase and decrease in value because of the performance of an external reference or product, but it is not affected by the solvency of the insurer’s general account.

Self-Directed Brokerage Account (SDBA)

The self-directed brokerage account investment option allows you to transfer a specified amount of your 403b investment dollars to a designated broker for investment in a full array of alternative mutual funds. Various fees and minimum deposit amounts may apply to each self-directed brokerage account. Contact the provider directly for additional information. See 403b SDBA comparison.