Bank trust custodial accounts may not sound familiar, but IRA probably does, right? An IRA (Individual Retirement Account) is a type of bank trust custodial account. In this case, the investor contributes into the account, and the bank invests the money into interest-bearing investments, or the investor picks what it is invested in, case-by-case.
There are two types: one where the bank invests the money, and self-directed accounts, where the investor manages the investments. As you can imagine, sometimes banks are a bit reluctant to be custodian (coordinate, basically) the self-directed accounts, because they're not picking the investments themselves, and a brokerage fee usually applies. Often the self-directed accounts allow for investments outside the usual dull shares, etc., and allow for investing in things like real estate, gold, or even horses, if you're a racing fan.
Related or Semi-related Video
Finance: What is a Street Name?0 Views
Finance allah shmoop What is street name or in street
name All right so people what's the street name main
first maple and of course yeah sesame You knew that
one sunny days Don't you remember that Well street name
works kind of the same way When it comes to
securities That is Everyone in town knows where main street
is Lots of businesses and some apartments have home base
there But when main street is given as a destination
well it's really easy to find on a map Same
deal with securities to make them easy to trade when
they are held in street name while they live with
the street or the broker like they're registered in street
name with fidelity or schwab or goldman or whoever and
that way when the owner of the securities wants to
trade him well they khun just direct the broker to
do so Takes away all kinds of friction of legal
mumbo jumbo that you'd have to go through and jumping
hoops and all that stuff every time you wanted to
trade the stock Otherwise so street name is your friend
and you know let's Hope there's Definitely some sunny days 00:01:05.261 --> [endTime] Ahead here for so many days No There
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