AIMING TO HELP EMPLOYEES OPTIMIZE THEIR PERSONAL WORKPLACE RETIREMENT ACCOUNT
HOW EMPLOYEES CAN MAXIMIZE THEIR RETIREMENT WORKPLACE ACCOUNT
What is a Self Directed Brokerage Account (SDBA)?
Many employers have enhanced their retirement plans to include a brokerage window opportunity that offers participants more choice and flexibility with their retirement investments. This option, known as the Self-Directed Brokerage Account (SDBA), exists in 401(k), 403(b) and 457 plans where participants will have access to professional management, stocks, bonds, mutual funds and ETFs.
How it Works?
Employees’ retirement plans exist in the core 401(k) account that offers limited, pre-selected investment choices. Plans that offer the SDBA option provide the opportunity for employees to take full control of a portion of their current retirement account by linking it to the existing core 401(k) account. That expands the range of investment choices beyond the core 401(k) investments and provides access to the same management style as high-net worth investors, institutions and foundations.
Managing Expectations
Creating healthy habits and a disciplined approach with your experienced advisor helps with managing investor expectations and behavior. Using risk-analysis tools to help determine how much downside risk is reasonable to achieve your goals, we can now establish a reasonable expectation of participating in a fair share of the upside.
