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.