A Retirement Account With The Power of Choice

No two employees have the same investment goals. Which begs the question: Does your current retirement plan accommodate different kinds of investors?

For your employees looking for more hands-on control over their portfolio, self-directed brokerage accounts (SDBA) allow them to make their own investment decisions—and they’re growing in popularity.

The options your employees expect

These accounts allow employees to buy and sell securities within their 401(k)s from a wider range of investment options than a typical retirement plan.

Employees are increasingly using these types of accounts, too, according to The Schwab Self-Directed Brokerage Account Indicators Report , an industry benchmark on retirement plan participant investment activity within SDBAs.

The report for the fourth quarter of 2023 shows that the average account balance across all participant accounts finished at $310,400 for the fourth quarter of 2023, up 10.8% year-over-year and a 7.9% increase from the third quarter. Gen X made up approximately 46% of SDBA participants, followed by Baby Boomers (27%) and Millennials (21%), according to the report.

Investor-first philosophy in action

Schwab’s 50-year history of innovating and advocating for investors are reflected in the Schwab Personal Choice Retirement Account? (PCRA) , helping make it an industry-leading self-directed brokerage account. These accounts allow your employees to invest in individual stocks and bonds, exchange-traded funds (ETFs), mutual funds, ESGs, and other securities that are not part of their retirement plan's core investment offerings.

To help your employees navigate their options and optimize their strategy, Schwab offers resources for market insights including research reports, advanced screening tools, and thought leadership from industry experts.

Schwab also makes it easy for plan administrators. Along with full integration with your existing plan, Schwab PCRAs also include seamless employee enrollment, dedicated service teams, and quarterly indicators reports ?on participant investment activity within self-directed brokerage accounts.

Learn more about how Schwab’s self-directed brokerage account can help set your company’s benefits apart—for both your current and prospective employees—or contact a Schwab representative to discuss adding PCRA to your plan.

Note that the numbers in the Schwab Self-Directed Brokerage Account (SDBA) Indicators Q4 2023 Report may have been impacted by Schwab’s integration with TD Ameritrade Self-Directed Brokerage Account Retirement Plans and Plan Participants on September 1, 2023.

“We,” “us,” and “our” refer to Schwab Retirement Plan Services Inc., unless otherwise noted.

“Schwab” refers to Charles Schwab & Co., Inc.

Schwab Personal Choice Retirement Account? (PCRA) is offered through Charles Schwab & Co., Inc. (Member SIPC), the registered broker/dealer, which also provides other brokerage and custody services to its customers.

Because environmental, social and governance (ESG) strategies exclude some securities, ESG-focused products may not be able to take advantage of the same opportunities or market trends as products that do not use such strategies. Additionally, the criteria used to select companies for investment may result in investing in securities, industries or sectors that underperform the market as a whole.

Schwab Retirement Plan Services, Inc. and Charles Schwab & Co., Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products and services are offered by Charles Schwab & Co., Inc. (Member SIPC).

Schwab Retirement Plan Services, Inc. created this communication for retirement plan sponsors and retirement plan consultants, advisors, and other retirement plan service providers and fiduciaries only. Schwab Retirement Plan Services, Inc. is not a fiduciary to retirement plans or participants and only provides recordkeeping and related services.

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