Having access to a 401(k) is a fantastic investment vehicle as part of your overall financial situation, especially with a generous employer match. However, sometimes the investment options can be overwhelming, both the number of funds available and what the funds actually represent. Well, it’s time to stop panicking about the investment selection process because this post will help make sense of it all.

Lockheed’s SDBA is an additional way you can grow your money and it allows for a variety of investment options:

  • Most stocks listed on the New York Stock Exchange or NASDAQ
  • Exchange-traded funds (ETFs)
  • Corporate bonds
  • Government bonds
  • Mutual funds
  • Another benefit of the Self-Directed Brokerage Account is that if you leave Lockheed, you have the flexibility of distributing stock positions in-kind or taking the distribution in cash. The key words with this account are “self-directed” meaning you are responsible for managing this account, not Lockheed or Empower. This type of account is best suited for those with investment experience and understanding of the various risks associated with it. It is also recommended to obtain and peruse the summary prospectus of specific mutual funds or ETFs prior to investing.The Self-Directed Brokerage Account uses TD Ameritrade as the custodian, which is where the funds are held. Total annual operating expenses of using the account are 0.03%. Expenses are determined daily based upon the market value of the Separately Managed Account and will be charged monthly to the Core Fund and Target Date Fund balances as a reduction in applicable units owned.

    To participate in the brokerage account:

    • Open a SDBA with the current provider by accessing the Savings Plan Participant website and selecting the Enroll icon in the Brokerage link under investments or you may call the Savings Plan

    Call Center.

    • Have a combined balance of at least $1,000 in your Core Funds and Target Date Funds and make an initial transfer of at least $500 from your Core Funds and/or Target Date Funds.

    Considerations:

    • Only Savings Plan assets can be transferred into the SDBA, meaning you may not contribute any outside assets. For a full list of transfer restrictions, refer to the Self-Directed Brokerage Account Fact Sheet provided by Lockheed Martin.
    • Loans and withdrawals cannot be made directly from assets in your SDBA

    To begin an application, click here and for frequently asked questions about the Self-Directed Brokerage Account, here is the link as well. Happy investing!

For more tips like these, click here to sign up for our weekly email blog newsletter. If you would like to get better educated on Lockheed retirement strategies, click here to download our Free Report titled Retire with Confidence: The Top 4 Things You Can Do Now to Maximize your Lockheed Retirement. And, if you want to have face time with a Lockheed Retirement Specialist², you can click here to schedule an appointmentclick here to sign up for our Lockheed Retirement Workshop or click here to just give us a call (817) 210-3444.

Be sure and check back next week for more incredibly valuable information. Cheers!

Disclosures*

Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.

Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.

Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.

SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.

Investing involves the risk of loss, including loss of principal. Past performance does not guarantee future results. Investment products are not FDIC insured, have no bank guarantee, and may gain or lose value. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable for a client’s investment portfolio.

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