What am I signing?

This form is what officially sets up your investment account. It gives us the information we need to manage your investments appropriately and confirms how you’d like your account handled.

What This Form Does

This document:

• Establishes your investment account

• Defines your goals, risk level, and preferences

• Allows us to manage investments on your behalf (with your permission)

• Documents important regulatory and compliance information

It also connects you to your advisor, LPL Financial, and the investment platform being used.

Key Sections to Understand

1. Your Account Type

You’re selecting the type of retirement account (IRA, Roth IRA, 401(k), etc.). This determines how your account is taxed and how contributions and withdrawals work.

2. Your Investment Goals & Risk Level

You’ll choose an objective like:

• Income (more conservative)

• Growth (more market exposure)

• Aggressive growth (higher risk, higher potential return)

This helps guide how your portfolio is built and managed.

3. Your Personal & Financial Information

You’re providing details like:

• Income and net worth

• Investment experience

• Time horizon

This ensures recommendations are appropriate for your situation.

4. Your Investment Preferences

This may include:

• Any restrictions (for example, avoiding certain industries)

• Liquidity needs (when you may need access to your money)

• Time horizon for investing

5. Fees and Account Management

This outlines how your account is managed and how fees are calculated.

In an advisory account, you are typically paying an ongoing fee for:

• Investment management

• Ongoing advice and planning

• Portfolio monitoring and adjustments

6. Beneficiaries

You’ll name who receives the account if something happens to you.

By enrolling in electronic delivery, you can receive important documents like prospectuses and shareholder updates directly by email instead of through the mail. This helps keep everything in one place and gets information to you more quickly.

How it works:

• Investment documents are sent to you electronically (by email)

• If you prefer not to opt in, they’ll continue to be sent by U.S. mail

• This includes documents related to:

  • Investments held at LPL

  • Certain direct investments

  • Trades made in your account

  • Structured product materials

As part of your investment plan, we’ve discussed adding structured products as a potential tool. This form, along with the options agreement, allows us to use those strategies in your account when appropriate.

You may remember we talked about this in our initial meeting, but here’s a quick reminder of what this means and why both pieces are a part of the Account Opening documents.

Structured products are investments that combine traditional assets (like bonds) with derivatives (like options). Their returns are typically tied to the performance of a market index, stock, or other asset.

They are designed to meet specific goals, such as:

• Generating income

• Offering some level of downside protection

• Providing growth tied to market performance

This form allows your account to include structured products as part of your investment strategy. These are more advanced investments, so this document makes sure you understand how they work and the risks involved.

Structured products are built using a combination of traditional investments and options (a type of derivative).

Even though you are not directly trading options yourself, the investment uses options behind the scenes to:

• Create income opportunities

• Provide some downside protection

• Shape how returns are calculated

Because of this, the account must be approved for options at a basic level in order to access structured products.

This form allows us to manage and adjust your investment account on your behalf without needing to contact you for every small change.

We’ve discussed this as part of your overall strategy, and this simply puts that process in place so your account can be managed efficiently.

What “Full Discretion” Means
By signing this form, you are giving us permission to:

• Buy and sell investments in your account

• Rebalance your portfolio as needed

• Make adjustments based on market conditions or your plan

This helps ensure your portfolio stays aligned with your goals over time.

What This Does NOT Allow
It’s just as important to know what this does not do:

• We cannot move money out of your account without your signature

• We cannot change your overall financial plan without your approval

• We do not take on additional risk beyond what you’ve agreed to

This authorization is about managing investments, not moving your money.

Transfer on Death, or TOD, is a simple way to make sure your account passes directly to the people you choose when the time comes.

By adding a TOD designation, you can name beneficiaries who will receive your account, helping avoid delays and keeping the process more straightforward for your loved ones.