Fidelity’s BrokerageLink® is an innovative investment option designed for select retirement plans, including 401(k) plans. Functioning as a self-directed brokerage account within your employer-sponsored retirement plan, BrokerageLink® provides you with an exceptional opportunity to enhance your investment choices and take greater control over your retirement savings.
Diverse Investment Selection
Traditional retirement plans often offer a limited range of pre-selected mutual funds. However, with BrokerageLink®, you gain access to a much broader selection of investment options. This includes the ability to invest in individual stocks, exchange-traded funds (ETFs), bonds, and mutual funds from various fund families. This expanded investment universe allows seasoned investors to pursue a more self-directed approach and enables diversification beyond standard plan options.
Tailored Investment Strategy
Personalization is key when it comes to retirement planning. BrokerageLink® empowers you to craft a customized investment strategy that aligns with your financial goals, risk tolerance, and individual preferences. This flexibility is especially beneficial for those who wish to actively manage their retirement savings and have specific investment preferences or beliefs.
Professional Advisor Option
While BrokerageLink® caters to self-directed investors, it also offers the unique advantage of partnering with a professional third-party advisor (where permitted by your employer’s plan). If you prefer to have a financial advisor manage your investments or to seek expert guidance on your retirement strategy, you should opt for a qualified advisor who is familiar with the BrokerageLink® platform. This option is ideal for individuals who value professional advice and management while still having access to the BrokerageLink® expanded investment choices.
How to Set Up BrokerageLink®
To take advantage of the benefits offered by Fidelity’s BrokerageLink®, follow these steps:
- Confirm Eligibility: Check with your HR department or retirement plan administrator to ensure that your employer’s retirement plan includes the Fidelity’s BrokerageLink® option.
- Access Your Account: Log in to your retirement account on Fidelity’s website or contact their customer service for account access. You’ll need your account information and personal details before proceeding to the next steps.
- Review Plan Information: Familiarize yourself with the details of your retirement plan, including the available investment options, fees, and any specific guidelines related to using BrokerageLink®.
- Enroll: If your retirement plan includes BrokerageLink®, submit a request to activate this option within your account. The enrollment process may involve an online submission through Fidelity’s website or coordination with your retirement plan administrator.
- Risk Acknowledgment: Before proceeding with BrokerageLink®, you may be asked to review and acknowledge the potential risks associated with accessing a broader range of investment choices, including individual stocks and other higher-risk securities.
- Agree to Terms and Conditions: Carefully read and understand Fidelity’s terms and conditions for using BrokerageLink® as part of your retirement plan and provide your consent accordingly.
- Fund Your Account: Once your enrollment request is approved, fund your BrokerageLink® account by transferring funds from your existing retirement plan investments or by making new contributions.
- Explore Investment Options: With your account funded, begin exploring and selecting investments from the expanded range of options available through BrokerageLink®. Tailor your portfolio to suit your specific financial objectives.
In conclusion, Fidelity’s BrokerageLink® offers a powerful combination of flexibility and choice for retirement investors. Whether you prefer a hands-on approach, want personalized advice from a professional advisor, or seek diversification beyond traditional mutual funds, BrokerageLink® has the potential to elevate your retirement planning experience.
For those with an active Fidelity 401(k) plan through their employer, reaching out to a financial advisor at Capital Advantage can provide valuable insights and determine whether BrokerageLink® aligns with their investment goals.
Disclaimer: Capital Advantage, Inc. is not affiliated, associated, authorized, endorsed by, or in any way officially connected with Kaiser Permanente® or TPMG (The Permanente Medical Group)