Self-Directed 401(k) Plan – Take Control of Your Retirement

Self-Directed 401(k) Plan – Take Control of Your Retirement

In today’s increasingly personalized world, we’ve come to expect easy, intuitive ways to customize the services and products we use to fit our individualized needs and situations. This is especially true with our finances. Unfortunately, when it comes to your retirement savings, you don’t always have the flexibility you’ve become accustomed to.

Saving for retirement through a 401(k) plan is easy, right?

Yes and no. Qualified 401(k) plans provide eligible employees with the opportunity to save for retirement by putting away hard-earned income every pay period. Contributing to the plan is the easy part. How you choose to invest your savings can be more challenging.

It’s my money and I want to choose how it’s invested.

If only it were that simple. Unfortunately, the investment options inside a 401(k) plan are limited to a preselected group of funds. As a result, your investment decisions are dictated by the fund options provided through the plan, and not based on the needs of your particular situation. Therefore, it can be difficult to create an asset allocation with your 401(k) savings that aligns with the goals and objectives you’ve outlined in your overall financial plan.

I want more investment choices. What are my options?

If you want to invest in funds that aren’t available within your company’s qualified retirement plan, you can explore the possibility of a self-directed brokerage option. A self-directed brokerage account provides the flexibility to access a wider array of investment options outside of the preselected group of funds offered through your company’s 401(k) plan. By utilizing a self-directed brokerage account, you can leverage the expertise of a financial advisor to create an asset allocation for your retirement savings that complements your overall investment strategy. If you don’t have a relationship with a financial advisor, consider establishing one with a CERTIFIED FINANCIAL PLANNER who can help you navigate your financial situation and provide a personalized approach to managing your assets – all of your assets, not just those in a self-directed brokerage account.

Not all 401(k) plans offer a self-directed option. To find out whether or not a self-directed option is available, contact your benefits department.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.

Investment advice offered through Stratos Wealth Partners, Ltd., an SEC registered investment advisor.

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