Gain The Advantages of A Financial Savings Club In Your Community
Financial savings clubs are formed by groups of individuals who combine their funds to make investments in stocks or mutual funds. Each member benefits from the information gathered by the other members and presented at their regular meetings.
The current uncertainty about the fate of the Social Security system in the United States is leading many to turn to alternate methods to fund their own retirement. Add to that the fact that employer contributions to pension plans are on a sharp decline, and it is easy to understand why individuals are beginning to utilize new ways to educate themselves on investment options. A financial savings club is a way to do just that.
The members of a financial savings club can socialize while gaining the benefit of financial investment knowledge acquired by others, and that is the least of the benefits of belonging to a club. Each member need only make a small contribution, the amount of which can be decided upon by vote, and the combined funds of the members make it possible to take part in investment opportunities that would be inaccessible to the individual. Surveys have shown that investments made by financial savings clubs perform better overall than other forms of investing.
There are a few important steps to complete when forming a club. Some of these may require the services of legal and tax professionals.
1) Elect officers for your club.
2) Draft a list of rules and regulations. Include in these the minimum contribution, how often contributions will be made, the process by which investment decisions will be submitted, the voting process, etc.
3) Establish whether your club will be a corporation or a partnership and take the necessary steps to legally forming the entity.
4) Apply for an EIN for the entity.
5) Set up bank accounts and brokerage accounts in the club's name.
6) Create a schedule for regular meetings and set attendance requirements for voting.
Each of us must be responsible for determining the state of our own retirement finances. No longer can we count on pensions or Social Security to see us through our golden years. The advantage of using the retirement calculator software, available for free download by clicking the red button, is that it can project your current investment plan into the future to predict how much money will be available to you several years from now, even taking into account such factors as market instability, changes in expenses and the effects of inflation.
Once you have armed yourself with a clear picture of your own financial future, you can make better informed decisions in any financial savings club. No doubt the other members of the club would wish to chart their own financial futures as well. A better informed club membership will lead to better overall investments to the benefit of each member.
If you are considering forming a financial savings club or want to learn independently about how to invest your money more wisely, the retirement calculator can be a great source of free help in taking control of your finances and providing a secure retirement future.