Fidelity 403/b with BrokerageLink Option

[justlearning]

My spouse has 403/b plan from her employer. We manage the account via Fidelity and it has  some general investment options. We are still reading WCI and  learning the ropes meanwhile we select "Fidelity Freedom® 2045 Fund - Class K" target date fund with expense ratio 0.64%.

One of the investment option is "BrokerageLink" (attached screenshot). From what i am reading, it looks like brokerageLink provides more access to other funds. I am just trying to understand how it works exactly.

Is it a good idea to utilize BrokerageLink option in 403/b account to pick better low cost index funds? (even though I do not know what kind of funds available in BrokerageLink option)

 

Thank you.

 

 

[WallStreetPhysician]

justlearning wrote:

My spouse has 403/b plan from her employer. We manage the account via Fidelity and it has  some general investment options. We are still reading WCI and  learning the ropes meanwhile we select “Fidelity Freedom® 2045 Fund – Class K” target date fund with expense ratio 0.64%.

One of the investment option is “BrokerageLink” (attached screenshot). From what i am reading, it looks like brokerageLink provides more access to other funds. I am just trying to understand how it works exactly.

Is it a good idea to utilize BrokerageLink option in 403/b account to pick better low cost index funds? (even though I do not know what kind of funds available in BrokerageLink option)

 

Thank you.

 

 

Click to expand...

Hi justlearning,

Your screenshot looks very similar to my employer's Fidelity retirement account investment options before they moved to all index funds last year. In your screenshot I noticed that FSITX is available for an expense ratio of 0.045%. That probably means that there is an S&P 500 option as well as an international index fund option.

I remember they have so many investment options (if I recall > 100 and possibly nearly 200) funds that it's hard for the average investor to find the cheap index funds.

I remember when I had to choose my investment options, I literally typed in "0.0" into the Ctrl-F (Find) button in my browser to be sure I had found all of the cheapest index fund options. This method identifies all funds that have less than 0.1% expense ratio. The FSITX will show up, and probably an S&P 500 option will show up as well. I was able to invest in a 3-fund portfolio with my Fidelity account (both before and after they went to all index funds).

Ctrl+F and type in 0.0 on your investment option page and let us know which funds are available that have expense ratios less than 0.1%.

-WSP

[justlearning]

WallStreetPhysician wrote:

justlearning wrote:

My spouse has 403/b plan from her employer. We manage the account via Fidelity and it has  some general investment options. We are still reading WCI and  learning the ropes meanwhile we select “Fidelity Freedom® 2045 Fund – Class K” target date fund with expense ratio 0.64%.

One of the investment option is “BrokerageLink” (attached screenshot). From what i am reading, it looks like brokerageLink provides more access to other funds. I am just trying to understand how it works exactly.

Is it a good idea to utilize BrokerageLink option in 403/b account to pick better low cost index funds? (even though I do not know what kind of funds available in BrokerageLink option)

 

Thank you.

 

 

Click to expand…

Hi justlearning,

Your screenshot looks very similar to my employer’s Fidelity retirement account investment options before they moved to all index funds last year. In your screenshot I noticed that FSITX is available for an expense ratio of 0.045%. That probably means that there is an S&P 500 option as well as an international index fund option.

I remember they have so many investment options (if I recall > 100 and possibly nearly 200) funds that it’s hard for the average investor to find the cheap index funds.

I remember when I had to choose my investment options, I literally typed in “0.0” into the Ctrl-F (Find) button in my browser to be sure I had found all of the cheapest index fund options. This method identifies all funds that have less than 0.1% expense ratio. The FSITX will show up, and probably an S&P 500 option will show up as well. I was able to invest in a 3-fund portfolio with my Fidelity account (both before and after they went to all index funds).

Ctrl+F and type in 0.0 on your investment option page and let us know which funds are available that have expense ratios less than 0.1%.

-WSP

Click to expand...

Hi WSP,

there are only 40 investment options available. (attached screenshot) and some low cost index funds as well. Perhaps i could create 3-fund portfolio.

Thank you.

 

 

[WallStreetPhysician]

Yea, I'd do the three fund portfolio using S&P 500 (ER 0.035%), international index (ER 0.06%) and us bond (ER 0.045%).

Great investment options. To answer your original question, you don't need the BrokerageLink. Let me know if you need any other help with setting things up.

-WSP