Brokerage Accounts

What is a brokerage account?

A Brokerage Account is an account funded by your Retirement Account with a Stock Broker for the purpose of investing in listed securities, bond and mutual funds. These are the types of investments typically found in retirement accounts and are referred to as traditional assets. We have spent a good deal of time addressing the non-traditional assets that you can hold in your Retirement Account but know that you can also invest in the more traditional ones.

How do these investments work since The Kingdom Trust Company is not a Broker/Dealer or Registered Investment Advisor?

You may use the broker of your choice to purchase these assets. You locate the broker you wish to utilize (only after thoroughly researching your options and discussing them with you tax, financial and legal advisors). Open an account with that broker in the name of your Retirement Account. Ask your Retirement Account custodian to forward the funds necessary to fund the account to the broker. The broker will then purchase the securities you’ve selected, have them registered in the name of your Retirement Account and forward the certificates to your custodian for safekeeping.

Please visit our Learning Center for more detailed information on getting started and investing through a brokerage account.