Customer Accounts: Rapid Fire
Chapters in this video
- 0:00 Cast of characters and the cash-vs-margin decision
- 1:22 Three margin agreements: which one is optional
- 2:29 Freeriding: the 90-day freeze penalty
- 3:37 Joint accounts: JTWROS versus TIC and the probate split
- 4:33 Custodial accounts, trust taxation, and the document review rule
- 5:37 Compensation traps: churning and reverse churning under Regulation Best Interest
- 6:20 Discretionary authority and the written power of attorney
- 6:44 Rapid-fire numbers: 50% margin, 73 RMD age, 25% excise tax
- 7:14 Traditional IRA versus Roth IRA: tax timing and distribution rules
- 8:18 529 plan versus Coverdell ESA: contribution limits and age deadlines
- 9:11 Options account approval and the ODD delivery timing
- 9:38 Rapid-fire exam recap
What this video covers
- The three margin account agreements (credit, hypothecation, loan consent) and which one is optional versus required
- The 90-day freeriding freeze penalty and why it differs from day trading or account closure
- Joint tenants with right of survivorship (JTWROS) versus tenants in common (TIC): probate paths, percentage control, and the memory aid in the name itself
- Uniform Transfers to Minors Act (UTMA) versus Uniform Gifts to Minors Act (UGMA) asset breadth, and why custodial gifts are irrevocable
- Discretionary authority paperwork: written power of attorney requirement, and why time-or-price instructions do not count as discretion
- The Regulation T 50% initial margin requirement, RMD start age of 73, and the 25% excise tax for missing it
- 529 plan flexibility versus Coverdell Education Savings Account (ESA) restrictions on contributions, age deadlines, and income limits
- Options account approval: delivery of the Options Disclosure Document (ODD) at or before approval by a registered options principal (ROP)
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