FCG Wealth Management

Self-Directed Brokerage Account (SDBA)

FCG Wealth

What is a Self-Directed Brokerage Account (SDBA)?

For many years, the investment options offered in company-sponsored retirement plans were limited to a pre-selected list of mutual funds. Today, many employers have enhanced their retirement plans to include a brokerage window, so plan participants have more choices and greater flexibility with their retirement investments. This option, known as the Self-Directed Brokerage Account (SDBA), or Personal Choice Retirement Account (PCRA), exists in 401(k), 403(b), or 457 plans where participants have access to professional money management solutions and strategies.

Custodians and Account Name:

  • Fidelity – BrokerageLink
  • Charles Schwab – Personal Choice Retirement Account (PCRA)
  • Alight Financial Solutions – Self-Directed Brokerage Account
  • TIAA – Brokerage Services
  • BOK Financial – Self-Directed Brokerage
  • Empower – Empower Brokerage Services
  • Princor (Principal) – Self-Directed Brokerage Account
  • Prudential Brokerage – Self-Directed Brokerage Account

Professional Advice Inside Your Retirement Plan

Not only do self-directed brokerage accounts significantly increase the number of options beyond their core investments, but you also have access to professional financial advice on those assets.

By working with a financial advisor to create and understand your personal financial goals and investment strategy, investors can avoid:

  • unwarranted risk
  • emotion-driven trading
  • poor market timing decisions
  • not being properly diversified

A growing number of plan participants are seeking professional investment advice on their workplace retirement accounts to help clarify the complexities inherent in retirement plan investing.

There is an abundance of behavioral finance research that emphasizes the importance of a trusted client-advisor relationship. These reports indicate that advisors add significantly to clients’ returns; net of fees paid for the advice.

The Value of Financial Advice:

Link to article http://static.twentyoverten.com/the-added-value-of-financial-advisors.1465329922518.pdf

References for retirement:

Fidelity - How much do I need to retire? https://www.fidelity.com/viewpoints/retirement/how-much-do-i-need-to-retire

SmartAsset - Is 1.5 Million enough to retire at 65? https://smartasset.com/retirement/is-1-5-million-enough-to-retire-at-65

How We Help You Find Your Path

FCG Wealth Management offers a variety of custom services to get you where you need to go. When you connect with us, we listen to your goals and help you find the strategies that fit your needs now and with an eye to the future. We value transparency and keep you updated so you can make critical decisions fully informed.

Schedule A Consultation

 

Ask us a question!

Let us simplify your financial life with some answers.