Individual Accounts
In this context, Individual accounts are considered to be accounts bearing an individual’s registered birth name. Such persons are considered to be the sole beneficial owners of an account’s assets & liabilities. Brokerage & Banking accounts initiated in this fashion generally represent the lowest cost and least time consuming method of implementing a new financial relationship. However, such structures offer little protection to investors in terms of Limiting Liability, Asset Segregation, or Wealth Preservation in the event of unforeseen circumstances.
Individual Investor - Definition
An individual who purchases securities (often small amounts) for him/herself, as opposed to an institutional investor. Also called retail investor or small investor. This investment approach is generally executed in accounts bearing the individual’s name. Brokerage & Banking accounts initiated in this fashion generally represent the lowest cost and least time consuming method of implementing a new financial relationship. However, such structures offer little protection to investors in terms of Limiting Liability, Asset Segregation, or Wealth Preservation in the event of unforeseen circumstances.
Investment clubs attempt to enable persons to become individual investors by pooling their funds in small groups and collectively deciding how to invest the money. Like-minded investors come together to make investments based upon the input and research of the entire group, often providing a more complete foundation for subsequent decisions. Of course, members of investment clubs do not need to invest only through the club, so the club can make an excellent addition to a portfolio or it can serve as an excellent introduction to investing as an individual. Clubs can be a benefit to investors of all skill and experience levels.
Once the group decides what investing goals it has in common and how the group will be run, the investing can begin. Members should plan and may be required to contribute at least a certain amount to the club's investment budget at certain intervals. Some clubs allow members to exceed the minimum and others do not.
All investments should be researched as carefully as an individual would research them, but, because more people are involved, research can be more thorough and cover more investment opportunities. It is important to keep all of the group’s members up to speed, however, and maintain a strong connection to the club's stated investment philosophy.
Investment clubs can always become formally structured at a later date via numerous avenues, including Incorporation (See Corporate Accounts). In such cases, club members become Shareholders, Officer, & Directors of a limited liability company. The company can then establish brokerage accounts, and execute as directed.
Please Note:
Tillerman Securities is of the opinion that services associated with strategic account opening structures, for Asset Protection or otherwise, (E.g. Corporations, Trusts etc.) are best provided by operations that are wholly independent of Custodial Operations (Banks, Brokers etc.). For this reason, we do not offer these services.
However, given that many clients opt to establish relationships via strategic structures, it is important that custodians (Banks, Brokers etc.) have a good understanding of these entities.
Further, in-order to deliver a hassle free experience to clients who may wish to operate accounts via a particular structure, Tillerman maintains a list of qualified & reputable service providers that offer advice & structuring services internationally.
We are happy to assist with initial introductions, and other support activity aimed at simplifying the process of opening an account in this fashion.
We maintain however that we do not give advice on strategic account opening structures, and therefore any related references should be considered as being for general information purposes only.
