It may be time to offer a self-directed brokerage account option

Description

Abstract: Self-directed brokerage accounts (SDBAs) within a 401(k) plan typically offer participants the ultimate investment smorgasbord: a virtually unlimited selection of stocks, bonds, exchange traded funds, and mutual funds to feast on. Yet relatively few sponsors — only 16% of plans on the platform of one of the largest 401(k) recordkeepers — offer them. This article looks at the pros and cons of SDBAs, as well as the ongoing monitoring and fiduciary aspects of these types of accounts. A short sidebar reviews recent market data about the typical SDBA account holder.