Brokerage accounts are designed for willing investors who prefer to exercise more control over their investments. Opening a brokerage account allows you to continue to invest your retirement savings in mutual funds that are not included in Boston University’s core investment lineup. 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.
How BrokerageLink® Works
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.
You may direct payroll contributions or assets to BrokerageLink. Only 95% of your future contributions or assets are allowed to transfer. Five percent must remain in the investment options under the plan.
If you choose to invest future contributions or transfer assets into your BrokerageLink account, they will first go to the BrokerageLink Core Account (Fidelity Cash Reserves Fund) until you make a new purchase. However, if you select the automatic contribution feature for payroll contributions, your future contributions will move from the BrokerageLink Core Account to the fund(s) you have selected in your BrokerageLink account.
Loans are not permitted from your BrokerageLink account. If you wish to take a loan from your BrokerageLink account, you must transfer those assets to a Vanguard Target Retirement Fund and/or a Core Mutual Fund. The loan that is available to you under the Supplemental Retirement & Savings Plan includes the balance in your BrokerageLink account. Once the transfer has been processed, you can request a loan.
Withdrawals are also not permitted from your BrokerageLink account. If you wish to make a withdrawal from your BrokerageLink account, you must transfer those assets to a Vanguard Target Retirement Fund and/or a Core Mutual Fund. Once the transfer has been processed, you can request a withdrawal.
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.
If you have any questions about BrokerageLink or would like to set up an account, contact Fidelity at 1-800-343-0860.