Self-Directed Brokerage Accounts
Each Participant in the Plan is eligible to open a Self-Directed Brokerage Account (SDBA) at Schwab, Fidelity, or TD Ameritrade. SDBAs are subject to the following fees paid by the participant:
- One-time, setup fee of $150 per Participant
- Recordkeeper annual fee of $50
- SDBAs can be established at any of the following custodians: Schwab, Fidelity, or TD Ameritrade
- Participant may choose to manage his or her SDBA (requires signing waiver/disclosure documents)
- Annual fee for FPL Capital Management to manage a Participant’s SDBA will range between $1,000 and $5,000 depending on desired level of service (See Appendix D for our Advisory Fee Schedule). A level 1 client’s fee is $1,000 per year. If a Participant would like to create a customized portfolio or include other personal account/assets, then they would need to upgrade to Level 2 or Level 3.
- All SDBA fees can be paid directly from the Participant. The Plan does not need to be responsible for SDBA fees.
For more information regarding the advisory fees for your managed Self-Directed Brokerage Account, please contact us at 1-888-401K-FPL.
Investment Selection
You may select one of our Model Portfolios or choose to customize your portfolio by utilizing the wide range of investment products offered on Schwab, Fidelity, and TD Ameritrade’s Institutional platforms. The Model Portfolios available to Self-Directed Brokerage Accounts are as follows:
| Model Name | Risk Score | Risk Category |
|---|---|---|
| Target 10 | 28 | Ultra-Conservative |
| Target 20 | 30 | Ultra-Conservative |
| Target 30 | 35 | Conservative |
| Target 40 | 43 | Slightly Conservative |
| Target 50 | 51 | Balanced |
| Target 60 | 59 | Moderate |
| Target 70 | 68 | Slightly Aggressive |
| Target 80 | 76 | Moderately Aggressive |
| Target 90 | 83 | Highly Aggressive |
| Target 100 | 87 | Highly Aggressive |
| DFA Fixed Income | 3 | Ultra-Conservative |
| DFA Global Equity | 88 | Ultra-Aggressive |
| DFA US Equity | 88 | Highly-Aggressive |
| Model Name | Risk Score | Risk Category |
|---|---|---|
| DFA International Equity | 89 | Ultra-Aggressive |
| ETF Fixed Income | 24 | Ultra-Conservative |
| ETF Equally Weighted | 76 | Highly Aggressive |
| US Dividend Equity | 84 | Highly Aggressive |
| WisdomTree Global Equity | 87 | Ultra-Aggressive |
| WisdomTree US Equity | 87 | Highly Aggressive |
| WisdomTree International Equity | 85 | Ultra-Aggressive |
| PIMCO Fixed Income | 22 | Ultra-Conservative |
| Diversified Fixed Income | 28 | Ultra-Conservative |
| AQR Low Beta | 35 | Balanced |
| Vanguard Global Equity | 86 | Ultra-Aggressive |
| Vanguard US Equity | 86 | Highly Aggressive |
| Vanguard International Equity | 87 | Ultra-Aggressive |
For more information on our Model Portfolios, please visit our website’s Model Folios page. Please note that not all Model Portfolios listed above are available on the Participant-Directed Platform.
Additional Available Investments
Most retirement plans strictly invest in various forms of publicly traded capital market investments such as stocks, bonds, mutual funds, and ETF’s. We believe that individual investors should not be denied access to other forms of investments that are accessible to institutional investors. We allow and oversee investments in Private Funds. These include:
- Private Equity Funds
- Private Credit/Debt Funds
- Private Equity Real Estate Funds
Typically, these funds have minimum investment requirements ranging from $2 million to $10 million. For this reason, they are usually not accessible to individual investors and are only utilized by larger pooled-asset pension plans and endowments. However, FPL Capital Management has arrangement for its clients to access these funds at significantly lower minimums. In some cases, as low as $50,000.