Author: Thomas A. Hilton, Jr.

Article:
An investment club is a group of people who meet at least once
a month to increase their investment knowledge. They agree to
contribute a predetermined amount of money which they then pool
together to invest, typically, in the stock market. Depending on
the extent of the trading knowledge of the members, monthly
contributions can be modest, ranging between $20 and $50.
Mostly, clubs of this nature are to give each member an
affordable way to learn how to purchase stocks. Once you've
gained enough confidence, knowledge and experience - you would
normally expand outside the club and create your own personal
portfolio of stocks. Before I share with you about how to create
your first investment club. Let me explain what your normal
investment club is like. Normally, an investment club is made up
of - between 10 to 20 members. Each member is required to bring
some knowledge or research to the table about potential stocks.
The meetings are to discuss the stocks as a group and then to
decide on which stocks should be invested in by the group as a
whole. One of the most important items on the agenda to agree on
before looking at any particular stock is to agree on the
philosphy of the clubs trading goals. It's best to agree on this
early into the group to avoid arguements later on. For example,
someone in their twenties might prefer to invest in riskier
stocks while someone in their retirement years would prefer to
invest in stable and slow growth stocks for safety purposes.
It's normally best to choose your members carefully first by
similar goals. According to the National Association of
Investors Corporation, there are over 50,000 investment clubs in
operation in the United States. These clubs are made up of many
different groups of people with many different investment
strategies. You have clubs made up of all women in their
retirement years, you have church groups that have formed
investment clubs, you have all black businessmen investment
clubs that focus on investing to give back to their communities.
I'm going to share with you how easy it is to create your own
investment club by sharing with you a little information about
the one I'm forming at this very minute. As you know, I
published the eBook "An Entrepreneur's Approach to Buying &
Selling on Wall Street". When I began sharing some of the
information and stock picking strategies found in that book with
some of my friends from church. They were very interested in
learning more about how I was able to choose stocks that
produced such remarkable gains. So, I agreed to create an
investment club where I would actually teach them first hand as
a group how this system works. We met at my house one night to
discuss just what would be involved and to iron out just a few
minor details before we could even begin. First, we as a group
decided to keep our club rather small. At least 4 of the 7 were
already investors - at least they already had their own personal
brokerage accounts. Once, we agreed on the number of members, I
made the suggestion that since we were focusing on the
strategies of my eBook that we make it part of the bylaws that
we use only those strategies and no others to avoid any
arguements later on. I also impressed upon the idea that we
treat this investment club a little different than most other
clubs. I wanted to prove the awesome power of these strategies,
so I suggested that we only make a one time investment rather
than making regular monthly contributions. We would allow a
simple math equation to determine just how much we would invest
up front. We chose Charles Schwab as our broker and because they
have a minimum amount of $5,000 to open an account, we agreed
that we would all invest a one-time $715.00 per member upon our
second meeting. Next, we chose a name for our investment club.
So of course the very first official investment club based soley
on the strategies of this eBook was born - "Chosen Few
Investment Club", an appropriate name for our group. The only
other item we needed was to apply for the clubs own Federal Tax
ID number or EIN# from the IRS. Once I received the number in
the mail, the only thing left was to choose officers of the club
and open the account under the "Investment Club Account
Agreement" with Charles Schwab & Company. Our investment club is
registered with the IRS as a general partnership and each member
will be required to be responsible for his portion of any
capital gains tax at the end of the year, as the club will file
one form stating how the capital gains are distributed. Each
member will receive a form called a K1, very similar to a 1099.
Each member will file the information from that K1 with their
personal 1040 tax return. So, as you can see - actually forming
your own investment club is rather simple once you layout
everything you must do and agree upon early into the venture. 7
Easy to Follow Steps To Creating Your Own Club 1. Choose your
members carefully 2. Agree on the size of the club 3. Establish
bylaws for the club 4. Choose a name for the club 5. Apply for
your clubs Federal Tax ID number 6. Open your clubs brokerage
account 7. Treat the club as a serious partnership, keep
records, meet regularly and enjoy the experience of learning to
invest as a group. Because this is our first official investment
club based on the strategies of the eBook. I'll keep you all
informed in upcoming issues as to our overall gains and
networth. In fact, I'll more than likely add a section to this
newsletter appropriately named for the updated status of the
club.

About the author:
Author of the popular eBook - "An Entrepreneur's Approach to
Buying & Selling on Wall Street" believes in sharing the secrets
to short-term investing within the Stock Market when others
would rather keep these unrevealed secrets to themselves.
http://hop.clickbank.net/?ailspromo/jv3way

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