In January 2014, the Florida Retirement Systems (FRS) announced a self-directed brokerage account option for FRS Investment Plan participants, including teachers and public school employees. According to the FRS, “The Self-Directed Brokerage Account (SDBA) allows Investment Plan members to invest in thousands of different investments in addition to the Investment Plan’s primary investment funds.”
In the announcement the FRS warns, “The SDBA is for experienced investors who want the flexibility to invest in a variety of options beyond those available in the FRS Investment Plan’s primary investment funds. It is not suitable for all members.” The SDBA provides thousands of investment choices which might seem to FRS Investment Plan participants to compound the complexities of investing for retirement. The FRS cautions investors that, “You assume the full risk and responsibility for the investments you select, so you will need to choose your investments prudently and monitor them carefully and frequently. The following investment options are available in the FRS Self-Directed Brokerage Account option:
- Stocks listed on a Securities Exchange Commission (SEC) regulated national exchange;
- Exchange-Traded Funds (except for leveraged Exchange-Traded Funds);
- Mutual funds (except for any of the Investment Plan’s primary investment funds); and
- Fixed income products.
FRS Investment Plan participants will continue to receive a quarterly statement from the Investment Plan, and your SDBA total balance will be reflected on this statement. FRS Investment Plan participants will also receive a separate brokerage statement detailing your SDBA balances, holdings, and activity. Additionally, trade confirmation will be provided for any purchases or liquidations in your SDBA.
True North Financial Advisors provide investment advisory services for FRS Investment Plan participants through the SDBA. The investment advisory services include third-party money managers and the development of investment strategies based on client investment objectives, investment time horizon and risk tolerances, which are implemented and monitored through the use of a personalized:
Our team is comprised of dedicated professionals who are interested in a truly unique relationship of trust and confidence with those individuals we help. We trust your access to our professional experience and knowledge of the financial services industry will provide the direction you need to find your True North financial destination.
