Many people are looking to invest but don’t feel that they have the skill, time, or discipline to take this on without a financial advisor. Let me introduce you to an investment club.
Investment clubs are generally a group of 5 to 20 people who are friends, coworkers, or share the common desire to invest. They form a club where each member invests a certain amount into the club fund each month that is invested in to products that are agreed upon by all members.
Generally, each person will invest between $25 and $100 per month in to the club but many invest even more than that. Here are 10 tips to help you get started:
1.) Select members- Find people with a similar level of knowledge as you so everybody can learn together
2.) Get help- go to www.betterinvesting.org. (You will also find a more detailed explanation of these 10 tips)
3.) Hold your first meeting- Go through the club kit and get things started.
4.) Elect officers- All the normal positions: President, vice-president, treasurer, secretary.
5.) Complete the General Partnership Agreement- This holds numerous tax advantages
6.) Lay out the club rules- Make sure everybody is involved in this.
7.) Complete all of the tax forms- There are some IRS forms you must fill out. Betterinvesting.org can help you with this.
8.) Open your brokerage account.
9.) Begin monthly club meetings and educational events
10.)Stay disciplined. Wealth grows long term so you will have to be patient.
Many people have a lot of fun with investment clubs while also making money in the process. Get some friends together and start learning.