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Allie Rivera of OneDigital Retirement + Wealth Discusses Self-Directed Brokerage Accounts

According to the Plan Sponsor Council of America, 44% of plans with 5,000 or more participants have self-directed brokerage accounts (SDBA).

There has been a growth in the use of SDBAs within retirement plan designs. Although they have grown in popularity, in those large plans, less than 3% of participants make use of the brokerage window. An SDBA allows employers to offer more non-standing investment options to their employees, but it is up to the employees to take advantage of this opportunity.

OneDigital’s Vice President of Investments & Retirement Services, Allie Rivera, notes in the PlanSponsor article, “Employers Use SDBAs to Give Employees a Choice,” an SDBA may not be necessary or the most effective for all businesses and their retirement plans.

If not having a brokerage window is creating a barrier for employees who won’t participate because of their religious beliefs, then offering a brokerage window is a solution.
But on the flip side, if you have a diversified investment lineup and your participant base is satisfied, and you have high participation rates, then this might not make sense.
Allie Rivera, Vice President of Investments & Retirement Services, OneDigital Retirement + Wealth

Read the PlanSponsor article here.

Want to read more on investments? Check out this recent media feature: OneDigital Retirement Adviser Discusses the Basics of Qualified Default Investment Alternatives.

Investment advice offered through OneDigital Investment Advisors, an SEC-registered investment adviser and wholly owned subsidiary of OneDigital.