The Brokerage Window

The Brokerage Window

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” (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

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