I'm interested to know how those of you who have experience with fully self-directed 401k plans (those that allow individual secutiry investments, not exclusively in mutual funds), feel about them.
I don't have one, but previous posters have indicated they often have high transaction costs. So develop a strategy to minimize those expenses. Otherwise, its a matter of choosing good investments.
The 401k at my place of business has a self directed option, but you have to have over 10,000$ before you can start, and only 30-50% of your total assets can be self directed (I forget the figure). Also their trade comission rates are very high compared to what I'm used to looking at (ex: 25$ for a trade plus .03$ per share). I have not used it as I have less than the minimum funds (I am 22 and have been an employee for less than a year). From talking to others who use it it is great. I would ask your 401k plan administrator what the details of the plan are. The fees and restrictions would vary widely between employeers.
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