Employer Retirement Plans

[auron]

Is it common for companys' to have an administered 401k plan that has the option to roll funds into a brokerage account within said plan?

My company just switched from Vanguard to Fidelity, both plans had the brokerage option and was stressed as one of the major advantages of our plan. It was hard to tell if it was just salespeak or a truely uncommon plan benefit.

[Like2Plan]

Is it common for companys' to have an administered 401k plan that has the option to roll funds into a brokerage account within said plan?

My company just switched from Vanguard to Fidelity, both plans had the brokerage option and was stressed as one of the major advantages of our plan. It was hard to tell if it was just salespeak or a truely uncommon plan benefit.

It sounds like a good option to me. It is not an option that DH or I have in our 401K plans.

If you want to rate your 401K, you can go to this link:
Brightscope

If your company is large enough, it will compare your 401K with others in the same peer group.

[Petunia 100]

If the mutual fund choices inside the 401k plan are mediocre or worse, then $30 per year for a brokerage acount would be a bargain. You would then have the ability to construct an excellent portfolio out of low-cost ETFs.

If the 401k plan already offers quality, low-cost mutual funds, then there is no reason to switch to the brokerage account unless you want to actively trade. The vast majority of us should not be actively trading.

[kv968]

Is it common for companys' to have an administered 401k plan that has the option to roll funds into a brokerage account within said plan?

My company just switched from Vanguard to Fidelity, both plans had the brokerage option and was stressed as one of the major advantages of our plan. It was hard to tell if it was just salespeak or a truely uncommon plan benefit.

Only about 30% of 401k plans offer a self-directed brokerage account.

I'd like to have that option with my plan if the fees were reasonable but it might be a problem for some to have it. I can just see some of co-workers throwing 90-100% of their money into Apple or something like that