Self-Directed Brokerage Accounts (SDBAs)
SDBA investing gives you and your employees more investment options to build your retirement savings with the help of a wealth manager. And that’s where we come in.
Self-Directed Brokerage Accounts (SDBAs) are an excellent way to take more control of a 401(k), but it is important to understand what they are first.
What Is a Self-Directed Brokerage Account (SDBA)?
SDBAs give you the opportunity to broaden your investment options beyond what your current 401k offers. You also get the same tax deferral benefits and the convenience of contributions through payroll deductions.
With more control over your investments, you have access to hundreds, even thousands of investment options, including exchange-trading funds (ETFs) and mutual funds.
Why Choose an SDBA?
Along with the advantage of having more investment options, SDBA investing lets a wealth manager or financial advisor monitor and automate your investments for you. You don’t have to worry about emerging markets, market volatility, or what investment choices to make.
That’s because we do it all for your total peace of mind. When we step into this role for you and your employees, we put our proven, data-driven strategies to work for you and your retirement plan.
Disadvantages of SDBAs
As with all investments, nothing is guaranteed. There are always risks of losing money or not growing as fast as other investments. And because SDBAs give you more investment opportunities, it an also pose more risk.
Because of this, we highly recommend that those interested in SDBA investing fully understand the risks of their investment, and partner with us to monitor and automate the process from start to finish.
Accessing your SDBA
Not every employer offers the SDBA option to its employees. This can be a conscious choice or one done out of lack of knowledge of the benefit or process. If you’re interest in the brokerage account option as an employer or employee, please contact us directly. We make the process easy, take the guesswork out of it, and put your retirement plans within reach.
Diversifying your SDBA
Like any good investment portfolio, diversification is key. It helps minimize losses in your investment choices during market downturns. It’s also not necessary or required to transfer all of your 401k assets into an SDBA. You can take as much or as little in SDBAs as you choose based on your desires and comfort levels.
