Eyeworld

139 OPHTHALMOLOGY BUSINESS October 2016 digital.ophthalmologybusiness.org SBDA is simply a brokerage account inside your employer's 401(k). A participant moves money through a "brokerage window" to this self-di- rected brokerage account. The event is not taxable because it's not a withdrawal of funds. You invest some portion of your contri- butions outside of the mutual funds within the typical 401(k) menu. The feature is also referred to as a "self-directed" 401(k) or "self-direct- ed brokerage account." Most important, the Pension and Protection Act of 2006 solved the biggest problem for 401(k) participants, allowing them to work with an investment advisor to final- ly receive the advice and guidance they need (and deserve) to preserve and plan for their retirement. EW fund—just basic information. The phone representative was prohibited from offering guidance or advice on changing funds or reallocating money. To recap, from its birth in the 1980s until early 2000, the 401(k) plan became the main retirement vehicle for American workers. The growth has been spectacular, yet there was still no guidance and no advice for participants in the plan. All this changed in 2006, mainly as a result of the collapse of Enron. As Enron was disintegrating, the organization's chairman, Kenneth Lay, was exhorting employees to buy more Enron stock through their 401(k) plans. Many followed his ill-conceived advice and lost not only their jobs but their retirement. It was a real mess. In response, Congress passed the Pension and Protection Act of 2006. This act created one of the best options available for a 401(k). The "brokerage window" allows 401(k) participants to move a portion (and in some cases all) of their 401(k) dollars over to a self-directed broker- age account, commonly called an SBDA. Today, the institutional lead- ers in this field are Charles Schwab, TD Ameritrade, and Fidelity. The your 401(k)? " The 401(k) savings tool has come a long way since its inception, offering more options and versatility than ever before. The problem is that many plan participants aren't aware of these changes, and that can result in unproductive plans that are greatly affecting retirement outcomes. " Mr. Balser is the managing partner and chief invest- ment officer of Balser Wealth Management in Avon, Ohio. He can be contacted at roger@ balserwealth.com. About the author

• Cover