Sun, 03 Feb 2008
Self Directed 401K
Have you ever felt that the funds offered in your 401k are very limited?
Have you ever felt that you want invest in Individual stocks or bonds in your 401k ?
Have you ever felt that the stock market is just not for you and you would rather stick to safe haven like CD's in your for 401k?
If you answered yes to any of the questions above then you might want to check with your employer to see if they offer self-directed 401K.
In simple terms a Self Directed 401k is just like a brokerage account where in you can trade stocks/mutual funds/ETF's and even brokerage CD's.
At my work I was lucky enough to have a self-directed 401k with Fidelity and I have traded ETF's/Brokerage CD's/Mutual Funds etc for it and the possibilities are endless.
Now you would ask if I have a self directed 401k then do I loose the traditional 401k with the 10-19 funds offered by my company. The answer is it really depends on your plan.In general you can have a self-directed 401k and a traditional 401k simultaneously.
Have you ever felt that you want invest in Individual stocks or bonds in your 401k ?
Have you ever felt that the stock market is just not for you and you would rather stick to safe haven like CD's in your for 401k?
If you answered yes to any of the questions above then you might want to check with your employer to see if they offer self-directed 401K.
In simple terms a Self Directed 401k is just like a brokerage account where in you can trade stocks/mutual funds/ETF's and even brokerage CD's.
At my work I was lucky enough to have a self-directed 401k with Fidelity and I have traded ETF's/Brokerage CD's/Mutual Funds etc for it and the possibilities are endless.
Now you would ask if I have a self directed 401k then do I loose the traditional 401k with the 10-19 funds offered by my company. The answer is it really depends on your plan.In general you can have a self-directed 401k and a traditional 401k simultaneously.
posted at: 15:07 | category: /personalfinance | permanent link to this entry
