Joining an Investment Club

Yesterday we looked at some investment club tips that were personal considerations to think about before joining an investment club.  Today my former co-worker looks at the importance of evaluating the investment club itself and a few things to look for.

Defined Investment Goals

Each member of the group needs to have the same goal in mind and the same methods of achieving that goal. If some members of the group are only interested in making a profit, instead of learning more about investing and the details involved, there will be a divided set of goals. All members of the club should have the same philosophy about investing.

Long Term Goals

Members of the club should be clear on what the long term goals of the club are all about. There should be an understanding established of what amount of the profits that are realized from investments are going to be held and which amount is going to be reinvested immediately back into the stock market. There should be an equal amount of growth and stability that is agreed upon.

Investment Club Meetings

It’s important that members of the group are able to attend all meetings. When there are decisions that need to be made about ongoing investments and future investments it’s important that all members are part of the decision process. If the group decision is held up because some members don’t attend regularly the endeavors of the investment group are jeopardized.

Investing Accountability Checkpoints

It will be very important that the investment club have checkpoints in place that account for all investments, profits, losses, and other money issues. These checkpoints should be readily available for all members of the club to read at point in time.  For example decisions on buying and selling stock. Before any stock is purchased or sold it will be required that all members of the investment club are part of the study of these stocks and part of the final decision.

Ben Edwards, the founder of Money Smart Life, saved up enough to buy a Nintendo back when he was 12 years old. When he used the money to buy shares of Wal-Mart stock instead, he knew he wasn't like the other kids... His addiction to personal finance has paid off for his family and now he's helping you to afford the life that you want. Check him out on the web at Google Plus, Twitter and Facebook.

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