Fidelity 401K brokeragelink

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Ringochan
Posts: 4
Joined: Mon Jun 28, 2021 3:32 pm

Fidelity 401K brokeragelink

Post by Ringochan »

I am planning to retire in 3-4 years.
As part of my bond allocation, I would like to start investing in treasury bonds rather than bond funds.
My 401K at Fidelity has "brokeragelink" option.
I can open it and transfer some fund from 401K and buy treasury bonds there.
I called Fidelity and they confirmed there is no fee for this option.
Just wondering if there is any catch for this before I hit the button?
Is this good idea?
LongRoad
Posts: 201
Joined: Mon Dec 31, 2018 2:00 pm

Re: Fidelity 401K brokeragelink

Post by LongRoad »

Ringochan wrote: Wed Sep 21, 2022 6:01 pm I am planning to retire in 3-4 years.
As part of my bond allocation, I would like to start investing in treasury bonds rather than bond funds.
My 401K at Fidelity has "brokeragelink" option.
I can open it and transfer some fund from 401K and buy treasury bonds there.
I called Fidelity and they confirmed there is no fee for this option.
Just wondering if there is any catch for this before I hit the button?
Is this good idea?
I have some T-Bills (and even a few brokered CDs) in Brokeragelink, and the mechanics are the same as in a regular brokerage account. Our plan has no (employee, anyway) fees for this either, and I don’t see any real gotchas with your idea. If you expect to buy any issues with a term that extends past your expected 3-4 years to retirement, you might want to confirm your plan’s options for when you retire — can you roll over your investments to an IRA in kind, or else what distribution options do you have, etc.
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FreddieFIRE
Posts: 438
Joined: Tue Aug 03, 2021 11:49 am

Re: Fidelity 401K brokeragelink

Post by FreddieFIRE »

Brokeragelink is a FANTASTIC option for some 401ks and a nice option for others (the good ones). I used it early and often. 8-)
A house and a job. Once the American dream. Two things I'll never again have. Life is simple (and good).
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David Jay
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Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Fidelity 401K brokeragelink

Post by David Jay »

LongRoad wrote: Wed Sep 21, 2022 6:14 pmIf you expect to buy any issues with a term that extends past your expected 3-4 years to retirement, you might want to confirm your plan’s options for when you retire — can you roll over your investments to an IRA in kind, or else what distribution options do you have, etc.
This is critical. If you purchase 5 year or 10 year Treasuries you need to know how you will handle those after retirement. Will Brokeragelink even be available after retirement?
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
Hebell
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Location: Boca Raton, FL

Re: Fidelity 401K brokeragelink

Post by Hebell »

I love the brokeragelink. It is linked to the 401k plan. The bulk of my husband's assets are in it in the form of etfs, TIPS, and treasury notes. On apthe non-brokerage side we have stable value funds, and a money market like account that we use for passing the cash back and forth.

At my husband's retirement, my understanding is we can keep the 401K without converting it to a rollover IRA. So why should I worry about having treasury bills or bonds in the 401K? This being a concern never entered my mind.
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kelway
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Joined: Wed Jan 06, 2016 2:37 pm
Location: Nashville, TN, USA

Re: Fidelity 401K brokeragelink

Post by kelway »

Hmm I pay $100 per year for access to BrokerageLink in my 401k. I may to ask if yours is free. Is anyone else paying?
Rd123123
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Joined: Fri Aug 03, 2018 6:55 am

Re: Fidelity 401K brokeragelink

Post by Rd123123 »

kelway wrote: Wed Sep 21, 2022 7:27 pm Hmm I pay $100 per year for access to BrokerageLink in my 401k. I may to ask if yours is free. Is anyone else paying?
That's all negotiated between your workplace's plan administrator and Fidelity. Where I work, it is free for employees, but could be the case that my employer pays for it. The employer plan administrator determines what features are available to employees in the Fidelity 401K plan.
sailaway
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Re: Fidelity 401K brokeragelink

Post by sailaway »

Rd123123 wrote: Wed Sep 21, 2022 10:42 pm
kelway wrote: Wed Sep 21, 2022 7:27 pm Hmm I pay $100 per year for access to BrokerageLink in my 401k. I may to ask if yours is free. Is anyone else paying?
That's all negotiated between your workplace's plan administrator and Fidelity. Where I work, it is free for employees, but could be the case that my employer pays for it. The employer plan administrator determines what features are available to employees in the Fidelity 401K plan.
Sometimes things that are free to employees are no longer free once you are no longer an employee. Sometimes it is free to all plan participants. Anyone who wants to use brokeragelink should check their own plan.
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