Not the end, but the end here.
I'm in the process creating a Investment club with several interested individuals from work. I'm laid off over the next week and I will be spending alot of time reading up on various regulations and requirements for legalizing it. The organization will have a website and I will be moving all write-ups(some will be revised) there; all new write-ups will also be located there.
For anyone whom is interested, an investment club is a group that forms an organization to pool funds and (duh) invests it. The purpose and focus of these clubs usually vary. The one I am forming is going to be devoted to educating those whom have little or no market experiance but wish to learn more. I'm planning on hosting meetings probably 12 or 1 PM on alternating Sundays, the timing or day may change however depending on majority preference. These meetings will last aprox. 2 hours.
There is going to be monthly deposite requirement, and a small dues fee for being a member. The dues will be required for a variety of expenses such as lawyer and accountant fees, registration fees, and misc. supplies. There will be full disclosure of all expenses for members and if the expense account exceeds a certain amount, the excess shall be deposited into the fund it self.
At this moment, the plan is that the monthly minimum fund contribution+dues will be 50$ a month. However depending on turnout, and the actual expenses there may be an initial registration fee; I'm hoping to avoid this but turns out lawyers and accountants are expensive.
If people wish to make more than the minimum contribution to the fund, that is acceptable as long as it is within regulations and any such rules that the club forms. Shares will be allocated when contributions are made into the fund. There will be some rules regarding withdrawls such as timeframe penalties(if you withdraw shares within a year or 6 mo of deposit, there may be a fine) and maintaining your minimum contribution amount(IE you can't withdraw last month's contribution and recontribute it the next month. If you been a member for 12 months you must maintain enough shares reflecting that).
That being said I believe this is an excellent way for people to get their feet wet in the market, while learning conservative investment strategies; with minimal personal exposure. Most everyone should be able to come up with 50$ a month, you can make that difference by switching from retail names to store brand foods, cutting out a movie rental or two, and shutting off the lights when you don't need them. Though one thing I do know, is that one of the requirements for an investment club is participation. If members just sign a check over and aren't showing up for meetings, then their contributions are illegal as then the organization would fall under other classifications (like a hedge fund, or mutual fund) and thats a huge hornet's nest. Especially seeing how I wouldn't be legally certified to run such investment vehicles. Though I'm hoping to get my RIA certification in the near future, just need to pass the FINRA 65.
I hope people take a serious look at this opportunity.