What Is a Brokerage Trading Platform and Should I Use One?

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Tier 4 of the new UNC System Retirement plan will provide you with access to thousands of new investment options. These additional options will be introduced through a brokerage trading platform. Brokerage has been available to 403(b) plan participants for a few years. As of June 6, 2014, participants in the Optional Retirement Plan (ORP) will have access to brokerage as well.

Brokerage is well suited for those investors who need a wider selection of options to achieve the portfolio diversification. It can also be a good fit for those that have an interest in taking a more focused approach to their investments, such as an investment in sector funds or funds focused on sustainable investing.

As of July 1, 2014, the sole providers of both the 403 (b) and the ORP will be TIAA-CREF and Fidelity. Fortunately, enabling the brokerage feature with either provider is fairly straightforward. However, the process of allocating funds and making exchanges is quite different from that you would use within the “core” platform.

If you have an interest in learning about what is right for you, contact us. We welcome an opportunity to explain the benefits and mechanics of the brokerage options that are coming your way very soon.

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