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Types of Accounts
Individual Account
A brokerage account with only one owner. Only this individual is
authorized to access the account. The person named on the account
is responsible for all account activity and tax liability.
Joint Account
A Joint Account is an account for general investment purposes and
is limited to five owners only. The primary tenant's social security
number will be used for the account and is also responsible for
all tax liabilities. All checks and written correspondence must
be in both tenants' names. Each owner will be eligible to trade
in the account and to receive income, proceeds, or securities from
the account.
Trust Account
A trust account is an account managed by a trustee or other designated
individual(s) or entity on behalf of the beneficial owner(s). This
account must be opened in the name of the trustee. A copy of the
trust agreement must be provided for our records. Examples include
educational, living, revocable and irrevocable trusts.
Partnership Account
A partnership is a type of unincorporated business organization
in which multiple individuals, called general partner(s), manage
the business and are equally liable for its debts; other individuals
called limited partners may invest but not be directly involved
in management and are liable only to the extent of their investments.
LaBrunerie Financial requires that one person be listed as the contact
for the partnership.
Corporate Account
A corporation is one of the most common forms of business organizations.
This account must be opened in the name of the corporation. A Corporate
Resolution with a raised corporate seal or a Limited Liability Company
Investment Authorization form must be included, along with a cash/margin
account agreement in addition to regular forms.
Investment Club Account
An investment club is a legal entity and is comprised of a group
of retail investors who pool their funds and make joint investments.
Club members usually include friends, coworkers, church members,
neighbors and family members. Club accounts are registered in the
name of the investment club. LaBrunerie Financial requires that
one person be listed as the contact for the club and all club members
actively participate in investment decisions. The benefits are diversification,
shared knowledge and reduced transaction costs.
A club is set up very much like a mutual fund.
Club members contribute money every so often, and may eventually
withdraw money once the club portfolio gets large enough. Each year
the individual partners must pay taxes on their share of the capital
gains, dividends and income from the club. Tax ID numbers are required
for all investment club accounts.
Custodian Account
This account is created for managing the assets of a minor (an individual
under the age of 21), with an adult as the custodian. A custodial
account contains trading and cash management features, for eligible
customers. This type of account must be a cash account and the custodian,
not the minor, must sign all required documents. Funds transferred
into a custodial account are irrevocable gifts to the minor and
all funds shall only be used by the custodian for the benefit of
the minor.
Individual Retirement Accounts
LaBrunerie Financial offers a variety of retirement accounts. Almost
anyone with earned income can take advantage of our tax-favored
IRAs. We offer Traditional IRAs as well as Roth IRAs, which offer
greater tax savings and withdrawal flexibility. You may rollover
an IRA, without paying taxes and penalties. Employers may take advantage
of our SEP and SIMPLE IRAs. LaBrunerie Financial also offers the
Coverdell Education Savings Account to help save for a child's elementary
or higher education. When opening an IRA, you have the flexibility
to invest in stock, mutual funds and more. LaBrunerie Financial
IRAs do not have maintenance or setup fees.
529 Plans
A 529 Plan is an investment plan
sponsored by a state designed to help families save for future college
costs. As long as the plan satisfies the few basic requirements
of Section 529 of the Internal Revenue Code, federal tax law provides
special tax benefits to the plan participant.
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