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401k Self-directed brokerage accounts


Self-Directed Brokerage Accounts, or SDBAs, are a new feature that’s been making an appearance in corporate 401(k) accounts across the country recently. This feature allows an employee – like you – to take control of the investments in the account directly, or have an advisor do it instead.

As with any self-directed account there are risks, but there are also big opportunities.

Because there are few restrictions on what you select in a 401(k) self-directed brokerage account you can often select whatever stocks, bonds, and funds suit you rather than picking from the dozen-or-so options provided by your plan’s administrator. For those that want options for aggressive, all-stock portfolios, portfolios oriented around specific sectors, or want to be able to avoid certain investments, this is a blessing.

The drawback? You have the same risks as anyone investing in a self-directed account. Make a bad stock pick, rely too much on a volatile sector or security, or allow your portfolio to become concentrated and you could be in for big losses without the ‘guardrails’ usually provided by the more stable investments offered in a 401(k).

That’s a large part of why more and more people are turning to independent Registered Investment Advisors (RIAs) to help with the management of their 401(k)s. Many RIAs offer billing from within or without the account, so you can keep the most of your money possible in this tax-advantaged account, and your RIA may provide anything from direct management to professional guidance to financial planning oriented around your retirement plan.

Zenith has experience with these kinds of accounts, and we’re excited to show you why so many of our clients trust us with their most important goal: their retirement.

To schedule a consultation with one of our advisors and find out if your plan offers this option, and how to take the greatest advantage of it, fill out the form below. An advisor will be in touch shortly.

How should we contact you?

An advisor will reach out to you shortly. We look forward to working with you!

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