Investment Clubs

Investment Clubs

Have you ever wanted to get together with a group of friends, and try to make money? Well, you can, as long as you have trustworthy partners, some capital, and share knowledge about investing, you can make that happen.

Investment Clubs are all over the world. An investment club, as defined by the SEC is a group of people who pool their money to make investments. They are usually organized as partnerships. After the members study different investments, the group decides to buy or sell based on a majority vote of the members.

The NAIC is the National Association of Investors Corporation, it is the advocate of getting people together to invest. 

Now that you know this, lets get started.

There are many advantages to starting an investment club, I will list a few advantages I think are good in bullet form.

• Not only are you using your knowledge, but you are gathering information from others too. Lets be honest, not everyone knows everything.
• The Returns on investments can be much greater by gathering money from others, dividing the profits.
• Meeting on regular basis to discuss tactics to handle the market, and pick smart investment opportunities. The gatherings can be fun, bring food, some drinks, and enjoy yourself.
• Reinvest dividends and capital gains, this is the best for growing an account.
• Being a leader can add great qualities to your resume, even though everyone is on the board of the investment club, there will be specific positions per person.
• You will learn discipline, new strategies, meet new people (or people you already know), improve you knowledge, and overall have a good time.
• Fees can be lowered, unlike mutual fund holders.

I think an investment club is a great opportunity for anyone who is new to investing, has some cash, and wants to learn the ins and outs of the market and collaborative investing. It is a great way to further your knowledge and do research with peers to pick investments based on agreeable research between you and business partners.

How do you get started? Well investment clubs usually run as an LLC or a legal partnership. Which means you will have to sign documents, based up standard rules of the club. If you start your own, you can make your own rules, I highly suggest getting the paper notarized, and keeping track of what goes on if you are the leader of the club. This way, no one tries to steal money. I would strongly suggest if you ever decide to run your own investment club, MAKE SURE you design a legal document that everyone signs. I also urge people to work with others that they trust. Trust is key to getting along in this world. Lastly, diversify portfolios, do not invest all in one sector, spread it out. 

Thank you for reading, I hope this information is helping and you start forming ideas!

Follow the Facebook page for updates!

https://www.facebook.com/chrisbartoinvesting/

Chris Barto