Tier 4 – Self- Directed Brokerage Account

Investing Style: For investors who want additional choice and investment flexibility.

Tier 4 is the Fidelity BrokerageLink®, a self-directed brokerage option, that combines the convenience of the BU Retirement Savings Program with the additional flexibility of an individual brokerage account. If you are a more engaged investor looking for additional investment selection and flexibility, a self-directed brokerage account gives you opportunities to invest in a wide range of mutual funds outside of the Plans’ investment lineup.

If you open a self-directed brokerage account, keep in mind that you are responsible for selecting and monitoring your investments under the account. Neither Boston University nor the Committee evaluate or monitor the investments available through the self-directed brokerage account. In addition, Fidelity does not offer investment advice for balances in these accounts. It is your responsibility to ensure that the investments you select are suitable for your situation, including your goals, time horizon, and risk tolerance.

If you do not feel comfortable actively managing a portfolio of investment options beyond those offered through the Plans’ investment lineup, then a self-directed brokerage account may not be appropriate for you.

Before investing in any mutual fund, consider the investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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.