How to Join or Form an Investment Club

Let’s face it, it’s important as a woman to think about your finances and your retirement, regardless of your marital status. Many women don’t know the first place to start, or how to even begin investing in stocks, mutual funds, or even real estate. One way to overcome this hurdle, and educate yourself in the process, is to join or form an investment club. Investment clubs offer you a fabulous way to build a portfolio and enjoy time with women who share similar interests. In fact, the National Association of Investors Corporation (NAIC), says that over 500,000 women are already members of investment clubs.


What is an Investment Club?

An investment club is a small group of people who pool their own money to invest, traditionally in the stock market. You can choose the number of people (usually less than 15) and whether or not you want it to be a women-only investment club, which generally perform better than male-only clubs! You can meet however often you like, typically on a monthly basis, to learn about investing and make decisions as a group as to the investments you will make.

How Does an Investment Club Get Started?

You can start by asking around to see if any of the women you know show any interest in forming an investment club. Ask at work, your parenting organizations, and your friends. Once you have a core group of people, you will need to set the club up legally, typically establishing a partnership through the IRS. You’ll then determine how much each person needs to contribute initially, and then on a monthly basis. You’ll want to determine your meeting format (in person or online) and it’s best to conduct your meetings in a formal manner, taking minutes and voting on investments and investment strategies.

Running the Investment Club

Once the club is established you’ll want it to continue to run smoothly. Make it a point to set up established procedures for introducing new members and for when existing members want to leave the group. You’ll probably want to elect officers so that people within the investment club have specific roles. The club should insure that proper financial documentation is kept for all purchases and sales. Chicks Laying Nest Eggs provides sample documentation for Operating Procedures, Minutes, Rules, and the IRS.

Most of all, make your investment group fun! Your primary goal is to make money and work toward a secure retirement, but there’s no reason not to make it a social situation as well. Bring desserts and share personal stories with your investment partners!

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