Limited Discretionary Account
Categories: Banking
Our broker, Jackie, is the best. Not only is she fun to share cat memes with, but she doesn’t do a half-bad job managing our investment portfolio. In fact, we’ve decided to open the reins a little bit with a “limited discretionary account,” an investment account in which we let our broker (or brokerage firm) use her own judgment and make trades without telling us about it first. We know she’ll make good decisions.
Limited discretionary accounts are common. Maybe we’ve even seen them around town going by one of their other names: managed accounts, or controlled accounts. These accounts make life way easier for the investor: we put the money into the account, we hash out our financial goals, and then we let the experts take the wheel. Little to no muss, little to no fuss.
Of course, if we’re really into the day-to-day management of our financial assets, limited discretionary accounts might not appeal to us. But for investors who are maybe a little less...hands-on, these types of accounts can be a lifesaver. Or rather, a life savings saver.
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Finance: What is Power Of Attorney (Trad...2 Views
What is power of attorney?
alright well little old Maybelle blue hair just can't think straight anymore
at least when it comes to managing her considerable volumes of money husband [kitchen oven on fire]
number four was loaded and had a weak heart and well he ate one too many [tombstone and grave]
cheeseburgers Maybelle trusts her grand nephew
Beauregard to make trades on her behalf and has given him trading authorization
to manage her account that is he can make trades without pre-clearing each [Maybelle carries brownie trays]
one with her his status is analogous to having power of attorney in doing
various legal and financial things in life like you might sign over power of
attorney to your legalese proficient uncle to handle negotiating the terms of
your juggling contract because well with your busy schedule you need some help [hand signing power of attorney papers]
keeping all your you know balls in the air and you have the option between
granting general or limited power of attorney like if you want your uncle to
handle all of your finances general POA makes sense but if you only want him to
handle your contracts like in a specific narrow area like at this brokerage
account only with equities or dead or something like that well then a limited
POA would be more appropriate so ya trading Authority is the Wall Street
e-version of power of attorney you might really want to put a few grand into the
stock market but as far as you know the stock market is just a market where they
keep produce you know stocked so you turn over authority to make the actual [Maybelle at the food market]
decisions and perform the actual trades to someone you trust to you know more [Maybelle brings food bag home]
efficiently handle your money because if everything's left up to little old miss
blue hair her entire life savings could end up invested in sweaters for cats Inc [Maybelle dresses her cat in a sweater]