If you are new to investing and don't want to spend the money to hire a financial consultant, one of the smartest moves to make is to join an investment club. Investment clubs are set up in two different ways--those that teach about investing using mock money and those that teach about investing by actually investing real money. Use these steps to learn about joining an investment club.
Instructions
1. Talk to your local chamber. Since investing clubs are supposed to form partnership agreements with all of their members and report tax information for each member, the club should be registered with the chamber if they choose.
2. Contact your bank or local financial institution. They may know of investing clubs that are operating locally. Don't forget to ask if they are a "mock up" club or a club that trades with real money.
3. Ask the business department of your local community college or university to see if they have an investment club that is open to the public. This is a great way to learn from business students and learn to invest at the same time. College clubs are also overseen by advisers or professors, making the risk a little less.
4. Start your own investment club. You will need to do a partnership agreement with each member. These can be found on the National Association of Investors Corporation (NAIC) website. You will also need to appoint a treasurer, president and other common board members. There need to be fees involved to cover the cost of opening a brokerage account, investing money, buying financial software and other possible costs.
