Getting an Investment Club Started - Step 2 The First Meeting
When you meet for the first time there are several things that youll need to discuss. Let everyone have the opportunity to add their input into the meeting so that all opinions are taken into account.
Make sure that you schedule a large amount of time for this first meeting so that you have plenty of time to talk about all of the following issues:
Common interest of the stock market. Make sure that all of you have the same interest in starting an investment club. You want to make certain that youre all the same page about the club is all about.
Organization. Discuss the exact details of how the club is going to be run. At this time you can talk about the goals of your club administration and how you plan to achieve this organization.
Commitment. All members should be aware of the commitment level that is required to participate in an investing club. This reaffirming that there is a seriousness to be a member of the club will give anyone who has second thoughts a chance to decline being a member.
Reading material. There should be a listing of material about investing that everyone should read to become more familiar with investing techniques and definitions. At the time of the next meeting members can start to discuss the finer points of investing.
Strategy of investing. There should be a mutual agreement about what investing style your club is going to focus on. Take a vote if the group is divided about any investing issues. Since this is still the first meeting any member that is in serious disagreement about the decisions made at this first meeting has a chance to decline being a member. Members should agree that this is long term commitment and if their goal is to get rich in a year or two and then leave the club it goes against the goal of the investment club.
Monthly contribution. Members should come to a mutual agreement upon how much money they are each going to contribute each month. Keep in mind that you can make changes to the minimum amount policy at a later date. Many clubs start out with small contributions of anywhere from to dollars. This money is used for the clubs administrative fees as well as a contribution into the investment fund.
The initial first meeting is a great way to clear the air and start to establish some basic guidelines for the way your investment club is going to be run and what your goals are going to be.
Youll want to make sure that the majority of the members are thinking the same way.
There are several other administrative issues that youll want to discuss at your first meeting. These administrative issues include:
Meeting times. All members should agree on (1) the days and time that youre going to meet (most investment clubs meet once each month), (2) the place that youre going to meet, (3) the length of the meetings (most meetings last about two to three hours), (4) the organizational format that each meeting is going to take.
Number of members. Agree on the size of the investment club. Studies show that a good size for an investment club is approximately 12 to 15 members. When you limit the size of the club to this many members youre still small enough to hold meetings in members homes.
Meeting place. You might want to come up with alternative meeting places, such as local library or caf, to use as an alternative meeting choice.
Club name. Youll want to come up with a name for your investment club. You dont need to make this decision on your first meeting but members should come to the next meeting ready with several ideas to share for a club name.
Once youve agreed on all of the above issues youre ready for your second meeting where youll be taking care of more of the finer points of investing, such as legal details and tax issues.
To prepare for some of the more detailed information and decisions that youre going to have to make you should assign tasks to members to come prepared to the next meeting with the following information and data:
partnership agreement forms
information for preparing a mission statement
banking information
legal forms, such as tax information
information about forming a partnership
local bylaws about investing
broker information
accounting information
investing information and articles
a listing of current members, including phone numbers and addresses
When attention is paid to all of the above details your investment club will be off to a good start.
Delegating duties is a great way to involve all members and to get tasks completed in a timely fashion.
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When youre investing with a group of people you can diversify your investments and not limit yourself to just one or two market choices.
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Take time to have meetings that discuss just what each member knows about investing and what they want to learn about the process. Education program. There are a few things that you should keep in mind when youre looking for a discount broker: The fees that you have to pay the discount broker will generally be quite low.
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Investment Software There are many different types of software that are available to your investment club to make things, such as investment decisions and accounting practices, easier and more efficient for you to complete. Spread out investments. If youve always wanted to invest in the stock market but been reluctant to lose large sums of money because you dont know what youre doing, then an investment club is great for you since you can be part of a large investment team. Take time to have meetings that discuss just what each member knows about investing and what they want to learn about the process. When youre looking for a broker and basing your decision on customer service and the way the website operates youll want to take some time looking at the brokers website.
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