Benefits of an Investment Club Part 3

We’ve learned how investments clubs help folks, even those with just a small amount of cash, gain financial leverage through strength in numbers. This act of synergy and collective contributions create opportunities for all the club members to build a portfolio of assets that they wouldn’t have had access to on their own and/or in much less time. Each member of the investment club could have their own personal reasons for contributing. The club as a whole, on the other hand, only has one function, and that is to increase the value of each member’s equitable stake within the club by trading/acquiring assets, and increasing dividends. What separates one club from the next is what/how assets are traded or acquired and dividends are earned. A successful club is comprised of members who share the vision behind the business club’s investment plan.

What’s In It for the Members?

The news is out about a local investment club in your area is accepting new members. Why should you consider joining? Aside from the benefits we covered in part one there are more personal reasons you should consider, that could lead you to contributing to a club as an investing member.

1. Retirement Income

Some individuals could be using the club as an additional/alternative retirement fund aside from an I.R.A. or 401k. A retirement fund involves fees, penalties, and only a certain percentage of your contribution, if any, is matched by your employer. In an investment club you simply have an equitable stake along with a group of other members who can be matching or outmatching your individual contribution each month, multiplying the total capital abled to be invested month over month, which means returns can be exponentially higher when compared to your traditional retirement instrument. This leads to the overall accumulation of assets that will generate revenue, and as a result you will receive a steady stream of income in the form of dividends.

2. Exclusive Perks and/or V.I.P. Discounts

Other members may become a contributing member to take full advantage of the exclusive perks. Say for instance your club has recently acquired a parking lot in a high traffic vacation spot the club may allow members free parking. On a larger scale, the same concept could apply in the form of discounts if not totally free, for club members whose contributions helped acquire self-storage lots, or even hotel rooms! Business acquisition is another route for some clubs, and this could mean discounts on car rentals/washes, food, airfare, auto repair, merchandise, etc. The possibilities are endless.

3. Job Opportunities

Another personal reason some members may have considered, is employment. Say you are a financial or business professional looking for work. An investment club would be just the place for you to seek out opportunity. Each new business asset acquired could not only mean job security for you, if you are an employee for the club, and/or a potential new client if you are a member of the club. Say you are a member with a mechanic’s license, of a club that has just recently acquired a multi-bay car garage. That could mean an opportunity for you to work for the club running your own garage. Aside from financial advisors and legal professionals, some other employment opportunities could be:

· Property Managers

· Private Contractors

· Assistants/Interns

· Agents/Salesmen

· Gig Managers/Event Planners

· Pawn Brokers/Shop Keeper

In my opinion, a successful investment club is a group of individuals that share a vision. Vision is when people are able to visualize how an idea or dream can become a real possibility to the point of being able to calculate the amount of time before that goal/destination is reached. In other words a vision is a dream/goal that you are able to accurately “put within your sights”. The way this is achieved is by creating a solid plan. This paints a picture for members of the investment club, and really shows them how their individual dream can become a reality. What does a solid investment plan look like? In part four, I’ll cover one full example of what I would consider a solid financial business plan for an investment club, and explain why.