"Cyniquian" Level Poster
Post Number: 154
|Posted on Tuesday, May 11, 2004 - 12:45 pm: |
To create an effective Investment Club, you should perform the following:
* Draft clear/distinct Club mission, objective, rules, regulations, controls governing where/how monies will be invested, divested, membership qualifications/duration/termination, etc. Be very specific about WHO has the authority to do WHAT. And have all sign their ‘John Hancock’ to what is being agreed to. The rules/regs don’t have to be too voluminous so long as it covers the most important/vital issues.
* Consult your local/state Attorney General and Secretary of State office for related laws/regulations.
* I know it early, but as you grow, as best as possible, solicit an industrious and diversely talented membership. ALL of the Club members should make valuable contributions to the success of the Club, otherwise those who work hardest will get pissed and likely flee. But if the Club has people who make disproportionate contributions to the Club, offer them additional compensation.
* Incorporate the club. PRONTO. This is vitally important because you don't want issues/problems incurred by the Club to spill into your personal affairs.
* Devise some kind of period financial/performance reporting system that clearly notes progression (or regression) of your interests.
* Soon after you begin and at least every year after, review your Club's legal/financial matters/progress with an attorney and a CPA.
And I recommend you read the Rich Dad/Poor Dad book series. The books don't cover Investment Clubs per see (and they have become a bit overly-popularized). But they offer accessible, effective and cost-effective advice on how to analyze any investment and how to build/maintain wealth.
Kc_trudiva, I have some real expertise in this area and would be happy to help you out. My services are expensive...but I’m sure that you and I can "work a lil ‘sum sum’ out". ((wink!))