What does Self-Directed Account mean? Read on to discover the definition & meaning of the term Self-Directed Account - to help you better understand the language used in insurance policies.
Self-directed account is considered a retirement account because the investor is in-charge of the investment decisions. This gives the investor a bigger hold on asset diversification since notes, real estate, and private tax liens can be purchased as opposed to only being able to purchase traditional mutual funds, stocks, and bonds. An account managed by a trustee or custodian holds all these investments and securities.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Self-Directed Account. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: