Top 5 self directed 401K Brokerage Account Options for the Self-Employed
March 4, 2023 | by FreeRetireCalc
Investing in a 401k plan is a wise way to prepare for retirement. It’s a tax-advantaged account that allows you to save money for your retirement years. Although many people find it difficult to manage their 401k plans effectively due to busy schedules or lack of financial expertise, some prefer to have more control over their investments and wish to take an active role in their retirement savings. Fortunately, there are self directed, online 401k management options that you can use to make investing in your 401k plan easier and more effective. In this article, we’ll take a look at the best five self directed, online 401k management options.
1. Empower
Empower, is an online investment management and financial planning service that provides a range of tools and resources to help users manage their finances and investments. The service offers a free analysis of your 401k plan, as well as other investment accounts, to help you better understand your investment performance, fees, and asset allocation. This analysis includes an evaluation of the overall diversification of your portfolio, a review of fees and expenses, and a detailed assessment of the historical performance of your investments.
In addition to the free analysis, Empower also offers a paid service that allows them to manage your 401k plan for you. With this service, Empower's team of financial advisors will work with you to create a customized investment plan based on your goals and risk tolerance. They will then manage your investments on your behalf, continually monitoring and rebalancing your portfolio as needed to ensure that it stays aligned with your investment objectives.
Empower's investment management services are supported by a team of licensed financial advisors who are available to provide personalized advice and guidance as needed. The service also offers a range of other financial planning tools, including retirement planning, college savings planning, and estate planning, to help users better manage their finances and plan for the future.
Overall, Empower is a comprehensive online investment management and financial planning service that offers a range of tools and resources to help users manage their investments and achieve their financial goals. Whether you're looking to take a more hands-on approach to managing your 401k plan or you're interested in professional management, Empower is a great option to consider.
- Cost: 0.89% for account balances under $1 million, decreasing to 0.49% for account balances over $10 million
- Features: Professional management, personalized advice, tax-efficient portfolio management, access to financial advisors
2. Wealthfront
Wealthfront is an online investment management service that uses advanced algorithms and data-driven strategies to help users manage their 401k plan and other investments. The service offers a range of low-cost investment options, including a diversified portfolio of index funds and exchange-traded funds (ETFs), to help users achieve their investment objectives.
Wealthfront's investment management services are designed to be fully automated, which means that users can set up their 401k plan and other investment accounts and let Wealthfront handle the rest. The service uses a combination of modern portfolio theory and tax-efficient investing strategies to optimize each user's portfolio and minimize fees and taxes.
In addition to its investment management services, Wealthfront also offers a range of financial planning tools to help users better understand their finances and plan for the future. These tools include a retirement planning calculator, a college savings planning tool, and a home planning tool, among others.
Wealthfront's investment management services are supported by a team of experienced financial advisors who are available to provide personalized advice and guidance as needed. The service also offers a range of educational resources, including a blog and a knowledge center, to help users learn more about investing and financial planning.
Overall, Wealthfront is a great option for users who are looking for a fully automated and low-cost investment management service. With its advanced algorithms and data-driven strategies, the service is designed to help users achieve their investment objectives and maximize their returns over the long term. Whether you're a novice investor or an experienced trader, Wealthfront is a great option to consider for managing your 401k plan and other investments.
- Cost: 0.25% per year on total account balance
- Features: Low-cost, professional management, no additional fees for trades or rebalancing
3. Vanguard
Vanguard is an online investment management service that is known for its low-cost index funds and ETFs. The service offers a range of investment options, including mutual funds, ETFs, and individual stocks and bonds, to help users achieve their investment objectives.
Vanguard's investment management services are designed to be flexible and customizable, which means that users can choose the investment options that best align with their goals and risk tolerance. The service also offers a range of investment tools and resources, including a portfolio analysis tool and a retirement planning calculator, to help users better understand their investments and plan for the future.
In addition to its investment management services, Vanguard also offers a range of financial planning and advisory services to help users manage their finances and achieve their financial goals. These services include retirement planning, college savings planning, and estate planning, among others.
Vanguard's investment management services are supported by a team of experienced financial advisors who are available to provide personalized advice and guidance as needed. The service also offers a range of educational resources, including a blog and a knowledge center, to help users learn more about investing and financial planning.
Overall, Vanguard is a great option for users who are looking for a range of low-cost investment options and flexible investment management services. Whether you're a novice investor or an experienced trader, Vanguard is a great option to consider for managing your 401k plan and other investments. With its range of investment options, financial planning tools, and personalized advisory services, Vanguard is a trusted and reliable partner for helping users achieve their financial goals.
- Cost: $20 per year
- Features: Low-cost, self directed, no additional fees for trades or rebalancing
4. Betterment
Betterment is an online investment management service that uses advanced technology and data-driven strategies to help users manage their 401k plan and other investments. The service offers a range of low-cost investment options, including a diversified portfolio of index funds and ETFs, to help users achieve their investment objectives.
Betterment's investment management services are designed to be fully automated, which means that users can set up their 401k plan and other investment accounts and let Betterment handle the rest. The service uses a combination of modern portfolio theory and tax-efficient investing strategies to optimize each user's portfolio and minimize fees and taxes.
In addition to its investment management services, Betterment also offers a range of financial planning tools to help users better understand their finances and plan for the future. These tools include a retirement planning calculator, a college savings planning tool, and a home planning tool, among others.
Betterment's investment management services are supported by a team of experienced financial advisors who are available to provide personalized advice and guidance as needed. The service also offers a range of educational resources, including a blog and a knowledge center, to help users learn more about investing and financial planning.
Overall, Betterment is a great option for users who are looking for a fully automated and low-cost investment management service. With its advanced technology and data-driven strategies, the service is designed to help users achieve their investment objectives and maximize their returns over the long term. Whether you're a novice investor or an experienced trader, Betterment is a great option to consider for managing your 401k plan and other investments.
- Cost: 0.25% per year on total account balance
- Features: Low-cost, self directed, user-friendly online platform, no additional fees for trades or rebalancing
5. Fidelity
Fidelity is a well-known online investment management service that offers a range of investment options, including mutual funds, ETFs, stocks, and bonds, to help users achieve their investment objectives. The service is known for its low-cost investment options, extensive research resources, and excellent customer service.
Fidelity's investment management services are designed to be flexible and customizable, which means that users can choose the investment options that best align with their goals and risk tolerance. The service also offers a range of investment tools and resources, including a portfolio analysis tool and a retirement planning calculator, to help users better understand their investments and plan for the future.
In addition to its investment management services, Fidelity also offers a range of financial planning and advisory services to help users manage their finances and achieve their financial goals. These services include retirement planning, college savings planning, and estate planning, among others.
Fidelity's investment management services are supported by a team of experienced financial advisors who are available to provide personalized advice and guidance as needed. The service also offers a range of educational resources, including a blog and a knowledge center, to help users learn more about investing and financial planning.
Overall, Fidelity is a great option for users who are looking for a range of low-cost investment options and flexible investment management services. With its extensive research resources and excellent customer service, Fidelity is a trusted and reliable partner for helping users achieve their financial goals. Whether you're a novice investor or an experienced trader, Fidelity is a great option to consider for managing your 401k plan and other investments.
- Cost: $4.95 per trade
- Features: Low-cost, self directed, no additional fees for account transfers or rebalancing
Conclusion
Investing in a 401k plan is a great way to prepare for retirement, but managing it can be challenging. Fortunately, these self directed, online 401k management options make it easier. Each of the services listed above offers low-cost investment options, professional management (if desired), and user-friendly online platforms.
When choosing a 401k management service, it's important to consider factors such as cost, investment options, and user experience. Do your research, compare the various options, and choose the service that best meets your needs and investment goals.
By taking advantage of an online 401k management service, you can rest assured that your retirement savings are being invested wisely and efficiently. Whether you prefer a hands-on approach or professional management, there is a service out there that can help you achieve your retirement goals.
Start investing in your future today and take the first step towards a comfortable retirement.
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