Investopedia

Continue to Site »

Custodial Agreement

Filed Under »
Dictionary Says

Definition of 'Custodial Agreement '

An arrangement whereby one holds an asset or property on behalf of the actual owner (beneficial owner). Such agreements are generally entered into by state agencies or companies to administer various benefit programs.
Investopedia Says

Investopedia explains 'Custodial Agreement '

An example of a custodial agreement would be a company retirement plan. Many, if not most, companies hire a third party to administer such plans: to collect payments from the employer and employees, invest the funds and disburse the benefits. The advantage of this arrangement is that the beneficial owner gets professional advice, which saves time, and often pays lower fees than would otherwise be available had the monies been handled by each individual owner.

Articles Of Interest

  1.

    The Role Of Parents In Financial Education

    The need for a concerted program of financial education cannot be ignored, and even though many parents are ill-equipped to lead the charge, there are numerous programs they can support.

  2. How To Start Saving For Retirement

    If you establish these money-saving habits and patiently allow your wealth to build, you will be taking some huge steps forward in making your financial future more secure.

  3. What Buffett Would Say To The 50K’ers

    FOX Business Network's Liz Claman will interview Berkshire Hathaway CEO Warren Buffett in an exclusive sit-down on Monday May 6th at 9:30 a.m. following the Berkshire Hathaway shareholder meeting. ...

  4. How To Get The Most Out Of Hiring An Accountant

    When you hire an accountant, getting good tax advice going forward is as valuable as – or perhaps even more valuable than - getting the previous year’s taxes filed correctly. Learn what you need ...

  5. Teaching Financial Literacy To Tweens

    In this tutorial we cover financial topics for children between the ages of eight and 12, from income and expenses to identy theft.

  6. Teaching Financial Literacy To Kids

    In this tutorial we introduce key financial concepts that are appropriate for young children, including tips for getting kids to think about and understand the topics.

  7. 10 Golf Tips To Help Investors Tee Off

    There are a lot of similarities between golf and investing. Find out how to keep your game out of the rough.

  8. Do You Dare Sue Your Broker?

    A financial damages claim is not for the fainthearted, but it may be worth it in the end.

  9. Differences Between Stockbrokers, Investment Advisors And Financial Planners

    Find out how these three financial positions differ and in which areas they can help you with your finances.

  10. The Best Investments For Young People

    Young investors today who wish to begin a savings plan face a bewildering array of investment options.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center