That acronym stands for self-directed brokerage account. If you are enrolled in a 401(k), 403(b), or 457 plan, you might want to see if your plan gives you this option, which is often unnoticed.

About 40%. These accounts can connect you to a wider variety of investment choices than the default ones presented in your plan, meaning potentially greater flexibility for your portfolio.

According to Aon Hewitt research, only about 3% of retirement plan participants use SDBAs. Simply put, they are not for every retirement saver. They are geared toward the pre-retiree who works with an investment professional and/or the investor comfortable with managing his or her level of risk.

If you are a high earner who is well acquainted with investing, an SDBA may really appeal to you. Through an SDBA, you can usually access a wide variety of equity and fixed-income investment options, plus professional investment management. All of your core account need not go into an SDBA; if you wish, you may transfer just a portion of those assets into it.

That will depend on a few factors: your knowledge, your tolerance for risk, your time horizon, your outlook on saving and investing, and your ability to devote time to your portfolio. You will also want to look at your plan's fee disclosure, as fees may be slightly higher with a brokerage-enabled account.

If the basic investment choices in your workplace retirement plan leave you dissatisfied, an SDBA might lead you to some alternatives. If you like being hands-on, an SDBA may provide additional flexibility when selecting and managing investments.

Alternately, you may choose to work with an investmeent professional to help manage the assets in teh SDBA and evaluate investement decisions. Whether you manage the account yourself or seek professional assistance, it is important to consider your investment knowledge, risk tolerance, time horizon, and ability to monitor investments on an ongoing basis.

An investment professional can also help you set metrics for your SDBA and assist you in defining your investment style and risk tolerance. Any SDBA should be viewed in the context of your overall retirement planning strategy, and if its performance really lags, it should be thoroughly reassessed.

Financially literate legal, medical, and consulting professionals are often interested in the potential of SDBAs. So are other well-compensated retirement plan participants. If your 401(k), 403(b), or 457 plan has a brokerage window, you may want to talk with an investment professional to explore the option of using an SDBA as you save for retirement.