401K Control

Is it a good idea to have a self-directed 401k?

Who can help with your 401(k)?

Exploring an SDBA (Self-Directed Brokerage Account) can potentially provide access to third-party management services for your retirement plan investments.

WHAT IS A SELF-DIRECTED BROKERAGE ACCOUNT? (SDBA)

An SDBA, or Self-Directed Brokerage Account, is a window inside a company-sponsored retirement plan (401(k), 403(b), 457, etc.) which offers plan participants the option to invest in more than the limited pre-selected company choices.

SHOULD I MANAGE MY OWN 401(K) INVESTMENTS?

An HCM SDBA can provide access to proprietary third-party professional money management. Some other potential advantages might include:

  • Take control of your retirement plan with more investment options and potentially greater diversification
  • Access to personalized advice inside your 401(k)
  • Access to third-party active management
  • Potential to sidestep bear markets through additional management strategies

"In a 2014 Financial Engines/AON Hewitt study, the annual median performance gap return between participants that had help and participants that did not have help was 3.32%, net of fees over the period 2006–2012. This difference can have a meaningful impact on wealth accumulation over time. For a 45-year old participant that seeks the help of a financial professional it could translate to 79% more wealth at age 65.3."

— FINANCIAL ENGINES & AON HEWITT

Is it a good idea to have a self-directed 401k?

BEFORE GETTING STARTED WITH A SELF-DIRECTED BROKERAGE ACCOUNT (SDBA) - IDENTIFY THE OPPORTUNITY – CONTACT US TO FIND OUT IF YOU HAVE AN ELIGIBLE PLAN.

We will call your 401(k) plan custodian together or refer to the plan summary to determine the following:

  • Determine if third-party management is available.
  • Determine the minimum core balance requirement and other important factors.
  • Determine if there is any paperwork that requires the plan administrator's signature.