Please make sure you carefully read your Summary Plan Description to find out if you can access this specific benefit called a “brokerage window” offered through custodians like Charles Schwab, Fidelity, TD Ameritrade, Empower, and Voya. Because typical retirement plans have a relatively limited amount of investments to choose from, companies have increasingly been utilizing this option to empower employees by letting them personalize their long-term retirement plan based on individual needs, objectives, and risk tolerance. As economic conditions and goals change over time, the brokerage window can provide the flexibility needed to adjust a customized investment strategy.

What is a brokerage window?

  • Labeled as benefit option “2R”
  • Built into a company retirement
  • Greatly increases investment options and capabilities beyond those of the “core plan”
  • Participant remains in the plan and maintains plan benefits
  • Each custodian typically has their own specific name
    • Charles Schwab “Personal Choice Retirement Account” (PCRA)
    • TD Ameritrade “Self-Directed Brokerage Account” (SDBA)
    • Fidelity “BrokerageLink&rdquo (BL)

Available investment vehicles in addition to your plan’s “core funds” can include:

  • Mutual Funds
  • Exchange-Traded Funds (ETFs)
  • Common Stock
  • Bonds
  • Options

Depending on the details of your company plan, you may or may not be allowed to appoint a third-party advisor to assist you in managing your tailored plan.

If you have any more questions, please feel free to contact me at alano@palmcm.com.

Alano Massi, MBA, CFP®
Managing Director - Financial Planning & Investment Management
Palm Capital Management, LLC