Vanderbilt’s new 403(b) retirement plan structure that will take effect in April includes three investment tiers that you can choose from depending on how involved you want to be in managing your investments. Tiers 1 and 2 allow you to choose from carefully pre-selected funds monitored by Vanderbilt and chosen for their strong performance and low management cost, among other factors. Tier 3 allows you to choose from many funds managed by different companies through a self-directed brokerage account. Fidelity calls this option BrokerageLink®.
If you like the funds you have in your retirement plan, but those funds are not included in the core investment lineup, you may be able to keep them by establishing and investing through a BrokerageLink account. You can find more information about BrokerageLink accounts, the funds available for you to invest in through a BrokerageLink account, and associated fees on the self-directed brokerage account page on the Retirement Plan Transition website.
BrokerageLink accounts are not for everyone. If you are an investor who is willing to take on the additional effort and are prepared to assume the responsibility of more closely monitoring this portion of your portfolio, it could be appropriate for you. However, if you do not feel comfortable actively managing a portfolio of options beyond those offered through the plan’s core options, then a self-directed brokerage account may not be appropriate for you.
If you plan to request an in-kind transfer of the eligible funds in your retirement plan account to a BrokerageLink account, you should meet with a Fidelity representative and open an account by March 9, 2015, to take advantage of a one-time in-kind transfer fee waiver. If you decide to transfer funds to a BrokerageLink account later, additional fees may apply.
To learn more about BrokerageLink accounts, visit the self-directed brokerage account page on the Retirement Plan Transition website. You also can schedule an appointment to meet with a Fidelity Planning Guidance Consultant for a one-on-one consultation by calling 800-642-7131, or visiting www.netbenefits.com/vanderbilt, then clicking on the Contact Us tab.