Photo by g stockstudio / Shutterstock.com
Welcome to the 2-Minute Money Manager, a short video feature answering money questions submitted by readers and viewers.
Today’s question is about joining the club; specifically, an investment club.
I’ve done a few TV news stories over the years on investment clubs, and every time I’ve visited one, I’ve left impressed. While I can’t claim firsthand membership experience, they sure seem like a great way to pool intellectual, financial and social resources. In short, a potentially cool way to make both friends and money.
Watch the following video, and you’ll pick up some valuable info. Or, if you prefer, scroll down to read the full transcript and find out what I said.
You also can learn how to send in a question of your own below.
For more information on this topic, check out “Afraid of the Stock Market? 7 Steps to Overcome Fear of Investing” and “10 Tips for Sane, Successful Stock Investing.” You can also go to the search at the top of this page, put in the word “investing” and find plenty of information on just about everything relating to this topic.
Got a question of your own to ask? Scroll down past the transcript.
Don’t want to watch? Here’s what I said in the video
Hello, everyone, and welcome to your 2-Minute Money Manager. I’m your host, Stacy Johnson. This answer’s brought to you by MoneyTalksNews.com, serving up the best in personal finance news and advice since 1991.
Let’s get right to today’s question. It comes to us from Mark, and it’s a short one:
“Should I join an investment club?”
Here are three things to know.
Thing No. 1: What’s an investment club?
It’s simply a bunch of people who get together, pool their money and knowledge, pick stocks and share profits. I’ve covered several of these as a TV news reporter, and my impression of them invariably has been favorable.
After scoping out a club and deciding if it’s a good fit, you can decide to join. Then, you’ll get together periodically, typically monthly. There’s no set number of people; it could be just a few, it could be 10 or more.
Traditionally, clubs meet in person, although there’s no law against doing it all online. You put in an agreed-upon amount, maybe $50 or $100 a month. Then, when you get together, you cover the fundamentals of investing and come up with ideas. After learning the ropes, you’ll pitch a stock idea of your own and listen to pitches from other members. After ideas are pitched, they’re critiqued, then voted on. If it passes muster, it gets invested in.
Thing No. 2: Finding an investment club
When looking for a club, check out the National Association of Investors Corp., or NAIC. To do that, visit . Here, you can search and see if there’s already a club near you looking for members. You’ll also find lots of information on how clubs work, including how to set one up yourself. Joining NAIC costs about $100 a year, but you can go to and get lots of great info without paying a dime.
Thing No. 3: Gain knowledge, then take it home
One of the coolest things about an investment club is that you can take the knowledge you learn there and apply it to your personal investments outside the club. Maybe you’re investing $50 monthly within the club, but you can take what you learn there and invest $500 outside the club.
Bottom line? Investment clubs are a super way to learn how to analyze and buy stocks. They’re also a great way to expand your circle of friends. If you’re interested in investing, see if there’s a club near you, or maybe even start one yourself. And if you’d like more info on investing, you’ll find it at MoneyTalksNews.com. Just do a search for “investing.”
I’ll see you right here next time!
Got a question you’d like answered?
You can ask a question simply by hitting “reply” to our email newsletter, just as you would with any email in your inbox. If you’re not subscribed, fix that right now by clicking . It’s free, only takes a few seconds and will get you valuable information every day!
The questions I’m likeliest to answer are those that will interest other readers. In other words, don’t ask for super-specific advice that applies only to you. And if I don’t get to your question, promise not to hate me. I do my best, but I get a lot more questions than I have time to answer.
I founded Localpizzadeliverywalledlakemi.info in 1991. I’m a CPA, and have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.
Got any words of wisdom you can offer on today’s question? Share your knowledge and experiences on our. And if you find this information useful, please share it!
Got more money questions? Browse lots more Ask Stacy answers here.