457(b)/Nonqual Brokerage Platform

[austin3515]

Anyone know of a brokerage account solution, no advisor attached, for these types of plans?  I need a solution where we can have it registered to the trustee of a rabbi trust.  In my experience advisors do not like working on these because the opportunity for accumulation is retty low.  So I'm looking for a Fidelity/Charles Schwab type retail account where we can just fill out an application and open the account, no advisor comp.

Anyone know of a solution?

[Peter Gulia]

Has the charity, social club, trade association, or other tax-exempt organization considered whether a rabbi trust adds much value?

Whatever investments are held to meet obligations under the unfunded plan must remain the employer’s property “without being restricted to the provision of benefits under the plan”, available to the claims of the employer’s creditors.

If a participant’s worry is about the organization’s insolvency (rather than a solvent organization’s dishonest refusal to pay the deferred compensation it owes), a rabbi trust might not do enough—legally, or even practically—to protect a participant regarding other creditors’ claims.

Consider making the organization the owner of each securities account, with the organization naming the participant as the person authorized to give investment instructions.

At least some securities broker-dealers, likely including the two you mentioned, offer accounts to tax-exempt organizations.

This is not advice to anyone.

[austin3515]

39 minutes ago, Peter Gulia said:

Consider making the organization the owner of each securities account, with the organization naming the participant as the person authorized to give investment instructions.

That's what I do most of the time, with all of the same explanations, but some executives still want it.  I've even had business owners want themselves to be the trustees of the trust to give the program more credibility (what do they care, they were never going to take it away anyway).  But for sure 8 or 9 out of 10 I am just doing corporate brokerage accounts.  It's the last 2 where I figure there must be a solution.  It's not that complicated.