Limited Discretionary Account

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.