What is a Self-Directed Brokerage Account (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. Today, 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), 401(a), 403(b), or 457 plans where participants have access to stocks, bonds, mutual funds and ETFs.

In their favor, brokerage accounts allow investors to choose from a vast array of investment choices, ones that permit them to invest in specific sectors, subsectors, or other elements of the market that may be very difficult to duplicate with traditional plan alternatives.

Professional Advice Inside Your Retirement Plan

Not only do self-directed brokerage accounts significantly increase the number of options beyond their core investments, you can now have a financial professional advise you on those assets.

By working with a financial advisor to create and understand your personal financial goals and investment strategy, investors have a better chance at avoiding higher risk, emotion-driven trading, poor market timing decisions, misunderstanding market volatility, or not being properly diversified. There is an abundance of behavioral finance research that emphasizes the importance of a trusted client-advisor relationship. These reports prove that advisors can add significantly to a clients’ net returns even after the fees they paid for that advice.

We also know that in some cases, too many options can actually hinder retirement plan participation. A growing number of plan participants are seeking professional investment advice on their workplace retirement accounts to help clarify the complexities inherent in retirement plan investing.

How it Works

A self-directed brokerage account is an option that opens up what is called a "brokerage window" which allows access to a broader network of mutual funds, stocks, bonds, and exchange-traded funds. When retirement savings are placed in an account like this, investments are allocated to investments apart from those available in the core plan.

With Serve & Protect, you have have access to Strategy PLUS, a next gen investment platform that taps the intellectual capital of some of the most recognized and respected investment managers in the country. You can choose from a suite of 30 Model Portfolios, built especially for participants of group retirement plans and customized to your specific risk tolerance level and investment goals. A blend of choice and talent not found in traditional retirement plans.

Our elite manager relationships allow Serve & Protect to incorporate sophisticated modeling within your current plans:

• A full range of risk tolerance levels from conservative to aggressive
• Asset allocation strategies that range from strategic to tactical
• Underlying investment strategies ranging from active to passive

Your Future

Our first priority is helping you take care of yourself and your family. We want to learn more about your personal situation, identify your dreams and goals, and understand your tolerance for risk. Long-term relationships that encourage open and honest communication have been the cornerstone of our success.