Online Investment Club for Dummy - Finding the Right Investment Club

So you think you would like to join an investment club? The first thing you need to do is find the right fit. Investment clubs come in all types, just as the investment world is composed of all types of investing styles. Do you know how you want to invest? This is the first question that must be answered before finding the right club. Are you an aggressive investor? If you’re under 40, you probably are on the aggressive side, and less risk-averse. However, as we age our investment styles should become more conservative as we approach retirement age and become more risk-averse.

The best way to find out the details about the club would be to attend a meeting. Most clubs have monthly meetings where they get together and decide what stocks they want to research and discuss the club’s policies. Well-organized clubs should have some established bylaws and written partnership agreements detailing the club’s goals and how they intend to reach these goals. Local clubs may meet in person; virtual investment clubs may have a chat or BBS discussion. Its here you’ll be able to decide whether or not the club is a good fit for you.

After finding the right club that suits your investment style be sure to scrutinize the club’s track record. Has the club reached any of its goals? Has the club outperformed the S&P 500? Has the club averaged better than 10% returns on a yearly basis? If they are getting returns over 10%, the club has done a great job getting their money to work for them.

Some clubs may have a steep buy-in expense, requiring the new member to buy an equal share of the pie. Other clubs will have detailed accounting systems in place that allow a new member to buy a percentage. Some clubs may require a new member to “buy out” another member. Once again, all these details can be found out at the club meetings.

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