Human Resources
Retirement Investors' Club (RIC) 403b Program
Investment Options
Different investments with various objectives and management styles perform differently in the market. You may view past performance of general investment categories here. Each of the six active providers offer one or more of the following products*:
Mutual Funds
Variable Annuities
Fixed Rate Accounts (also referred to as Stable Value)
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 investment requirements for performance and cost. You may want to compare your investments with those being offered by RIC's 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
- large cap stock funds
- mid cap stock funds
- small cap stock funds
- international funds
- target date/life stage 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.
Variable Annuity
A variable annuity is an insurance contract designed to be both an investment vehicle and a source of retirement income. A variable annuity allows you to contribute to a variety of investments including variable rate funds (sub accounts) or fixed rate accounts. Fixed rate accounts are guaranteed by the provider. There are no surrender fees or annual contract fees on RIC's variable annuity products
The variable rate funds will fluctuate in value over time, reflecting the value of the underlying portfolio selected. The funds do not provide a guarantee of principal or earnings. Hartford's annuity does provide a death benefit (unused principal guarantee) to beneficiaries. Although the names, investment objectives, and management style of the funds may be similar to those of mutual funds available to the general public, they are not the same fund. These funds are available in a variety of investment categories including, but not limited to:
- bond funds
- balanced funds
- large cap stock funds
- mid cap stock funds
- small cap stock funds
- international funds
- life stage funds
Variable annuity returns are not guaranteed by the State of Iowa or the US Government and are not FDIC insured.
Annuitization is a distribution option in an annuity contract that entitles you to payments that are an even distribution of your account’s principal and interest for your lifetime or the lifetimes of you and your survivor. Your payment amount will depend on the annuity option selected, your age, and the value of your account and frequency of payments
Fixed Rate Accounts (Stable Value)
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 will be updated on our website periodically. For the most accurate rate information contact the providers directly.
Self-Directed Brokerage Account (SDBA)
The self-directed brokerage account investment option (offered by ING for 2009) allows you to transfer a specified amount of your 403b investment dollars to a designated broker for investment in a full array of mutual funds (11,000+). Various fees and minimum deposit amounts may apply to each self-directed brokerage account. Contact ING for additional information.