Brokeragelink investment options
My plan added a low-cost collective trust. Her plan is managed by Fidelity. Fidelity calls it BrokerageLink. Some k plans managed by Charles Schwab also have this feature. Schwab calls it PCRA — Personal Choice Retirement Account. She can designate a percentage of her ongoing payroll deductions toward it. She can transfer money between it and other funds. She can rebalance her plan account by saying what percentage of the total plan account should be in BrokerageLink.
You can buy or sell pretty much everything you can with a regular brokerage account. The "link" that connects BrokerageLink to other funds in the plan is a money market fund. Money going into or coming out of the brokerage account is put into or taken from the money market fund. From there, you place trades to buy or sell other mutual funds, ETFs, individual stocks and bonds, etc. This is similar to how Vanguard Brokerage Service works.
Transfer a chunk to BrokerageLink after the money builds up to a larger sum.
Other k providers often charge a high annual maintenance fee and high trading commissions for the self-directed brokerage account. Its BrokerageLink has the same low prices as its retail brokerage accounts. There is no annual fee. Commissions are the same as retail:. The brokerage window opens up a world of good investment options. With Fidelity BrokerageLink, she will have many good options.
There are some newer Spartan index funds, but they are still too new for me to consider at this time. Fidelity has a joint marketing deal with iShares to make 30 iShares ETFs commission-free at Fidelity.
If you purchase often, the lack of commissions will make up for the slightly higher annual expenses. Some notable ones include:. If you buy a large chunk, paying a one-time commission is better than paying a higher expense ratio every year to a similar iShares ETF. With all these great investment options, Fidelity BrokerageLink makes a big difference to an average k plan.
Best Investment Options With Fidelity BrokerageLink
Mortgage rates came back down! Let banks compete for your loan. Get up to 5 offers at LendingTree. March 5, at My employer added Brokeragelink a few months ago. I have used it mainly for buying iShares TIP. It is a nice feature overall, but has a few annoying delays and quirks:. A core mutual fund exchange is an atomic transaction that happens all at once at the end of the business day. It usually, but not always, double-counts them in my total investments and net worth.
For example, my employer used to offer the VIPIX TIPS institutional fund 0. Now they just tell us to use iShares TIP. Dan — Thank you for sharing your experience with Fidelity BrokerageLink.
As mentioned in the post, I think it works best when you transfer a chunk from the core funds to BrokerageLink as opposed to trying to invest new money into it. I agree with your comments about employers or rather the plan vendors using brokerage window to silence the demand brokeragelink investment options better funds.
They must know that very few employees will take the trouble brokeragelink investment options actually use the brokerage window.
As day binary trading kids clothes stock picks result, they get to keep the vast majority of the money in the more profitable core funds.
I like to get my money fully invested where I want it as soon as I malaysia stock market analysis software it, but my habit may be just a neurotic hassle in this case.
The first time I transferred money from BL to the core fund, I asked the Fidelity rep if I could do it online. I guess that inattentive or uneducated investors will always be susceptible to paying too much. I use the Schwab PCRA brokerage window. On the plus side, we can set up automatic monthly rss feed stock market ticker to buy Schwab mutual funds.
March 6, at 3: One additional point, although this may be specific to my plan: As transfers into BL are to the core account FDRXXthe direct competitor on the other side is, of all things, the stable value fund.
March 6, at 8: Is there some regulatory requirement for it? The lockup is an artifact of the stable value fund.
A stable value fund gives you an above-money-market interest rate while maintaining a stable value. In exchange, the investors must agree to keep the money there for some time. It would have to either give you low yield like a money market fund or let the value fluctuate and potentially cause losses like a bond fund.
March 6, at 1: Chasing one hunch after another. March 6, at 7: Are there any restrictions on how much money can be placed in the brokerage window? Perhaps Fidelity and Schwab are more lenient in this department. March 6, at She can also buy ETFs in addition to mutual funds.
March 7, at I have access to BrokerageLink, but cannot trade ETFs. Kind of a pain, but it works. Nickel, your plan probably forbids ETFs and individual stocks, I presume based on similarly poor logic about risk and volatility. Actually, my colleagues made a sufficient fuss about the no-treasury-bonds rule that management is supposed to be fixing it.
If you make enough noise, you might get the no-ETFs rule fixed as well. Point out that iShares ETFs are low-cost and diversified index funds with no commissions? March 10, at 6: For my plan, USTs via BL are no problem. June 13, at I have heard some plans only allow mutual funds.
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Investing With Fidelity’s BrokerageLink @ Financial Ramblings
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Best Investment Options With Fidelity BrokerageLink by Harry Sit on March 5, 15 Comments. FREE E-mail Newsletter Join over 3, readers and get new articles by e-mail: Comments Dan says March 5, at It is a nice feature overall, but has a few annoying delays and quirks: Thanks for the help.
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