If you want to expand your investing strategy but don’t know where to start, consider joining an investment club. An investment club is a group of people who research strategies and, in some cases, pool their money to invest together. Joining an investment club can help you become more knowledgeable about investing and learn from others who have similar goals. But finding and joining a club can be intimidating, especially if you’re new to investing. To help you, we’ve put together these simple tips for joining an investment club.
Key Takeaways:
- An investment club is a group of members who share ideas and strategies for smart investments.
- Some clubs pool their money to make investments collectively, while others serve to educate and inspire members as independent investors.
- Most clubs have long-term strategies to grow wealth over a defined period.
- There are resources you can use to find investment clubs in your area that share your personal investment style.
- An Infinity Investing membership can allow you to gain investing insights that you can share with other members of your club.
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What Is an Investment Club?
An investment club is a group of people who meet to discuss their investing strategies and goals. Members may be friends, coworkers, neighbors, or people who know each other socially. The group meets regularly, usually at least monthly. The club may operate informally, or it may have a defined structure with elected leaders or committees.
There are usually two types of investment clubs you can join. These include:
Traditional Investment Clubs
In a traditional investment club, members pool their money to make shared investments. As a group, they buy and sell assets, such as stocks, funds, or real estate investment trusts. Members commonly make monthly contributions, which can vary depending on the group. For example, some clubs may ask you to contribute $100 each month to the investment pool.
Typically, traditional investment clubs require members to review investment options and then vote on decisions. Often, each member chooses an investment and presents the option to the group. Since these clubs involve active participation, they’re a great way to learn more about investing.
Self-Directed Investment Clubs
A self-directed investment club is a group of members who discuss investments together, but each member invests on their own. Members don’t pool their money to make investments. In this type of club, you can talk through investment options and get advice from members. Often, these clubs have guest speakers who can provide additional insights. Joining a self-directed club can help you become more educated about different types of investments and develop a network of investors.
Benefits of Joining an Investment Club
Joining an investment club can have many benefits. Specifically, it can help you to:
- Learn more about investing, especially if you’re a beginner.
- Discover new investment options or strategies.
- Invest in the market without using all your own money.
- Maximize the returns on your investments.
- Meet people who have the same investment goals or interests as you.
- Develop and grow a network of investing contacts.
Bonus Tip: Get an Infinity Membership
As part of an investment club, you’ll be expected to share investment options and make educated decisions about the best choices to make. If you want to join a club but are a little nervous about what you can contribute, an Infinity Investing membership is a great way to ensure you come prepared for your first meeting.
Infinity members can access useful tools and resources to become more educated investors, such as:
- On-demand investing workshops and training.
- An exclusive bi-weekly newsletter.
- An Infinity Advisor strategy session.
- Weekly stock rooms.
- A weekly real estate investing room with live analysis.
When you show up to an investment club armed with these resources, the other members will be impressed by your knowledge and glad to have you in the group. For a limited time, you can get a free Infinity Starter membership, normally valued at $29.95 per month. Use this code to unlock your free membership and get ready to wow your new investment club friends.
Tip 1: Consider Your Long-Term Goals
Joining an investment club is not a get-rich-quick scheme. While you can make money this way, it usually takes longer. Since most clubs meet monthly and require majority votes for decisions, they can’t make quick buying or selling decisions. For this reason, think about your long-term investing goals before you join a club. If you’re committed to making investments over the next several years, a club membership may be a good option for you.
Keep in mind that many clubs will also penalize you for leaving the club early. For example, there may be a penalty for withdrawing your funds from the pool before a specified period. Before joining a club, make sure you understand its rules, so you won’t be caught off-guard if you want to leave within a year or two.
Additionally, consider what types of investments you’re interested in pursuing. Investment clubs usually focus on specific assets, such as stocks or real estate. Make sure you choose a club that aligns with your own investment interests and goals.
Tip 2: Know Where To Find Investment Clubs
Once you know exactly what you want in an investment club, all that’s left to do is find one to join, right? It may be harder to find a club than you expect. That’s because the U.S. Securities and Exchange Commission regulates some investment clubs, so they’re not allowed to recruit members. Additionally, many clubs have members who know each other through a similar connection, such as work or mutual friends. If you don’t have the same connection, it can be difficult to break into these groups as a new member.
However, there are plenty of ways you can find potential clubs to join. Start by searching online for investment clubs in your area. If you live in or near a big city, you’re likely to find numerous clubs you can join. Many clubs have their own websites, so you can learn about a club’s focus and membership rules before requesting more information.
Another great way to research investment clubs is by attending a model club meeting. BetterInvesting, formally known as the National Association of Investors Corporation, offers the opportunity for guests to attend meetings in their area or online. At a model club meeting, you can often develop connections and learn about investment clubs that you can join.
Tip 3: Don’t Make a Snap Decision
After you’ve found a club, don’t make a snap decision about joining. Read the fine print before you sign on the dotted line and pay your membership dues. Make sure you know how the club operates. For example, does it require members to make unanimous decisions, or does it choose investments based on a majority vote?
You should also know about the club’s investment philosophy before you join. Some clubs may have restrictions on the investments they choose. For example, a club may set a minimum share price for stocks. Make sure you feel comfortable with the club’s investment style and understand how it aligns with your own.
Finally, it’s always a good idea to attend at least one meeting before you officially join a club. Ask if you can attend as a guest to get a feel for the club’s operations and expertise. Ideally, you want to join a club where you can discuss investments with like-minded individuals and learn more about investing along the way. You should get an idea of whether you’re compatible with a club after you’ve attended one or two meetings.
Joining an investment club can be an excellent way to build your portfolio, grow your network, and become a better investor. With these tips, you can find a club that’s a good match for your financial goals.
Get More Investing Tips
Want more tips about investment strategies? An Infinity Investing membership can help you get to the next level. As a member, you get exclusive tips and resources, such as on-demand training and access to weekly stock rooms. You can even share what you learn with your new investment club friends. Purchase a membership today and get started on the next phase of your investing journey.
Infinity Investing Featured Event
In this FREE event you’ll discover how the top 1% use little-known “compounders” to grow & protect their reserves. Our Infinity team of experts show you how to be the best possible steward of your finances and how to make your money and investments work for you instead of you working for them. Regardless of your financial situation today, you’ll have a road map to get to where you want to be.