Brokerage accounts are designed for willing investors who prefer to exercise more control over their investments. Opening a brokerage account will allow you to continue to invest your retirement savings in mutual funds that are not included in Boston University’s core investment line-up. You have a world of choices from which to choose.
While a brokerage account offers expanded flexibility, it also comes with additional personal responsibility and risk. The University does not select or screen these investments. That task falls to you.
You will need to establish a separate account with Fidelity, and in some cases, instruct them each time you want to make a new investment allocation or transfer of the University’s retirement contributions. You may incur additional transaction fees for trades and ongoing fund management.
For some experienced investors, the additional risk and potential fees that come with a brokerage account may represent a reasonable cost relative to potential rewards.