POINT OF INTEREST
Xerxes Nabong, CFP®, CDFA®
Philip M. Maliniak, CRPC®
Nicole Brown-Griffin, CFP®, CDFA®, EA
Aaron Petty, Client Associate
Hampton Roads: (757) 394-3486
Greater Phoenix: (480) 687-9339
Orange County: (949) 660-8869
Does Your Retirement Plan Include This Powerful Investing Feature?
Did you know that at Wealth Avenue, we offer custom management strategies for 401(k) and 403(b) retirement plans?
Most investors are familiar with the standard investment options, typically mutual funds or target-date funds selected by a plan administrator. While these choices provide a solid foundation, they often lack the flexibility and customization many investors seek.
Introducing the Self-Directed Brokerage Account (SDBA)
A Self-Directed Brokerage Account (SDBA) is a “brokerage window” available within many employer-sponsored retirement plans—including 401(k), 403(b), and 457 plans. It offers access to a broader range of investment choices than the traditional core lineup. This brokerage window allows you to invest your retirement savings in a wider variety of assets, all within the tax-advantaged structure of your retirement plan. With an SDBA, you gain access to:
- Investing in and owning individual stocks (e.g., Microsoft, Apple, Nvidia)
- Exchange-traded funds (ETFs)
- Mutual funds beyond your plan’s standard lineup
Popular custodians like Fidelity and Schwab offer SDBA options under the names BrokerageLink and Personal Choice Retirement Account (PCRA), respectively.
What Does This Mean for You?
With an SDBA, you benefit from:
- Greater investment flexibility
- Direct ownership of high-quality companies
- Access to professionally managed strategies, including Reservoir Financial’s customized allocation recommendations
- Enhanced diversification, including U.S. large-, mid-, and small-cap companies as well as international markets
Depending on your employer’s retirement plan structure, we may be able to implement a robust, actively managed strategy through direct stock ownership or an allocation of actively managed mutual funds, tailored to your investing desires.
Already Using This Feature?
If you’re already using a brokerage window, great! We’ve recently expanded our offerings and may be reaching out soon to ensure your current strategy still aligns with your objectives.
Snapshot: Employers Offering Access to This Retirement Plan Advantage
We regularly work with individuals whose employers offer retirement plans that include a brokerage window. Below is a sample of organizations whose plans offer this powerful feature:
- American Airlines
- BAE Systems
- Bon Secours
- Broadcom
- California City and State Employees
- CDW
- Children’s Hospital of the King’s Daughters
- Christian Broadcasting Network
- Chubb
- Delta Airlines
- General Dynamics
- Honor Health
- Huntington Ingalls
- Kaiser Permanente
- Lockheed Martin
- Mayo Clinic
- Northrop Grumman
- Raytheon
- Sentara Healthcare
- Virginia Retirement System 457
And this is just a small sample of the thousands of companies nationwide where we’ve helped individuals take greater control of their retirement investing. If you’d like to find out whether your retirement plan includes a brokerage window and explore how we can help optimize your investment strategy, please don’t hesitate to reach out. With advisors based in Arizona, California, and Virginia, and the convenience of virtual meetings, we’re able to support clients across the country. We’re here to guide you, and anyone you refer, every step of the way.
Thank you, as always, for the trust you place in us.
Your Team at Wealth Avenue,
