What Is SDBA?

For many years, the investment options offered in company-sponsored retirement plans were limited to a pre-selected list of mutual funds and annuity contracts. However, thousands of employers have enhanced their retirement plans to include a brokerage window opportunity so that plan participants have more choices and greater flexibility with their retirement investments. This option, known as the Self-Directed Brokerage Account (SDBA), exists in 401(k), 403(b), or 457 plans where participants have access to stocks, bonds, mutual funds and ETFs.

401k

Employer-sponsored defined-contribution pension accounts

There were about 600,000 401(k) plans, with about 60 million active participants and millions of former employees and retirees.

403b

For employees of public schools and other tax exempt organizations

Retirement plan participants may include teachers, school administrators, professors, government employees, nurses, doctors, and librarians. Over $1 trillion market size.

457

Deferred Compensation Plans

Offered to state and local government employees such as police officers, firefighters, or other civil servants. Another market with an over $1 trillion market opportunity.

Coming Trend:

In-Plan Advice

82% of financial professionals

expect increased public demand

for financial planning over the

next 5 years, driven by individual

retirement needs and younger

generations seeking advice.

Start capturing new AUM with

SDBA, create reoccurring revenue

from your in-plan advice, and ride

the big wave ahead.