Self-Directed Brokerage Accounts

What is SDBA?

For many years, the investment options offered in company-sponsored retirement plans were limited to a pre-selected list of mutual funds and annuity contracts. However, thousands of employers have enhanced their retirement plans to include a brokerage window opportunity so that plan participants have more choice and greater flexibility with their retirement investments. This option, known as the Self-Directed Brokerage Account (SDBA), exists in 401(k), 403(b), or 457 plans where participants have access to stocks, bonds, mutual funds and ETFs.

In-Plan Advice: Opportunity is Everywhere

Not only do brokerage accounts allow investors to choose from a vast array of investment options and expand the range of investment choices beyond their core investments, they can now have professional management advise on those assets.

Today, nearly 50% of company 401(k) retirement plans offer SDBA or Brokerage Window options. But as behavioral finance studies have shown, too many options can actually hinder participation rates in 401(k) plans. Given that, a growing number of plan participants are seeking professional investment advice. For the financial advisor, that means the opportunity to turn assets under influence (AUI) into assets under management (AUM) are limitless.

How it Works

Limited core investment options turn to greater choice, flexibility, and access to financial advice:

SDBA Access Points

Our Self-Directed Brokerage Account investment options are available through a variety of custodians:

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