Managed Account

  

Categories: Managed Funds

Human beings aren't irrelevant...yet.

A managed account has a human, albeit with the aid of many computers and computer systems at their beck and call, managing that account.

The market dropped a lot today, so should we buy equities? Swap some bonds for growth stocks that were crushed? Or is the world feeling bubblicious, and we should sit pat with cash until things really fall apart, and then go low price-earnings-growth stock shopping?

A managed account has someone making all these calls and decisions in various forms. And clients pay for it. See: Wrap Account...and think: 1% a year against all assets in the managed account, but with no trading commissions or other surprise fees. Works for some, anyway.

Related or Semi-related Video

Finance: What Does it Mean to Churn an A...14 Views

00:00

Finance allah shmoop What does it mean to churn an

00:05

account All right Well back in colonial times before america

00:10

was the good old u s a You know what

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That i po and seventeen seventy six colonists would churn

00:16

cream into butter back then churning involved moving a plunger

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in a wood bucket over and over and over again

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Really good for the traps and lattes there Not exciting

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but well that's What happens when there's No better technology

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today churning is something illegal that stock brokers dio and

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remember normally brokers pay their own rent by getting paid

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a commission off of each trade they do for customers

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So churning in the financial sense here means that stockbrokers

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are making tons of trades they really don't need to

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be making in a client's account in order to generate

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mohr commission for themselves they're churning the account to generate

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dough for themselves Illegal very bad And sometimes it can

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be difficult to detect or stop You know think about

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little old ladies not really paying attention to our account

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or ah cardiologists who really has no idea how wall

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street works They have no idea of the brokers churning

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Or not Well if you fall prey to a broker

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who's involved in churning you'll end up overpaying them in

01:17

commissions And you might even have to pay extra taxes

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because they realized gains from all those trades they didn't

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need to make But if that brokered does get caught 00:01:26.979 --> [endTime] yeah he's toast

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