A limited discretionary account is an account where the account holder has granted someone else permission to make investment decisions on their behalf, but only within certain parameters. This means that the account holder has given the other person discretion over which investments to make, but has set limits on how much they can spend or how much risk they can take. This can be a useful arrangement for people who want to delegate investment decision-making but still retain some control over their finances. What does discretionary mean in finance? Discretionary means that the decision to buy or sell a security is up to the discretion of the investor. This type of investing requires a high degree of knowledge and experience in order to be successful. Many investors use discretionary investing strategies to take advantage of market opportunities that they believe will be profitable. What is the synonym of discretionary? Discretionary refers to money that is available to be spent at the discretion of the individual, without being restricted by a budget. What is the opposite of discretionary benefits? The opposite of discretionary benefits would be mandatory benefits. These are benefits that an employee is entitled to receive by law, such as Social Security or Medicare. What are discretionary funds used for? Discretionary funds are funds that are not earmarked for any specific purpose. They can be used for any purpose that the holder sees fit.
There are a few different types of discretionary funds. One type is a discretionary fund that is set up by an employer. This type of fund is usually used to cover the costs of small expenses that are not covered by the company's regular budget. Another type of discretionary fund is a personal discretionary fund. This type of fund is usually used by individuals to cover the costs of unexpected expenses.
Which of the following constitutes a discretionary account?
All of the following constitute discretionary accounts:
1. Individual retirement accounts (IRAs)
2. 401(k) plans
3. 403(b) plans
4. 457 plans
5. pension plans
6. profit-sharing plans
7. Keogh plans
8. annuity contracts