Self Directed Brokerage Account (SDBAs) among your 401k investment options were enhanced by the Pension Protection Act of 2006.
The intent of the Pension Protection Act of 2006 is to expand the choices available to the Plan Participant (you) and address the self-dealing among Plan Providers and the Mutual Fund Industry.
For more information, click here or on the Categories section to the right, under the heading “Self-Directed Brokerage Account Option.”
Steps to evaluate your Self Directed Brokerage Account:
Determine what investment options are available via this channel.
Determine if there are any annual fees just for maintaining the account.
Determine if the plan has in place the ability for pre-tax payment of independent, third-party, investment advice directly from your account.
Ask yourself if you really have the time, talent and persistence to manage this on your own.