The Benefits of Self-Directed Brokerage Options in 401k Plans

Brian, also known as loophole McGee, asks a question about self-directed brokerage options in 401k plans. Providers like Fidelity and Schwab offer these options, allowing investors to access the entire investment universe, including individual stocks, ETFs, and mutual funds. This is a major advantage compared to traditional 401k plans that limit investment choices. When comparing a Roth IRA to a Roth 401k, we often highlight the benefit of having more investment control in a Roth IRA.