Earn While You Learn With Investment Clubs

Better Investing

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

7 Dumb and Costly Moves Homebuyers MakeBorrow

This Free Software Brings Old Laptops Back to LifeMore

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Beware These 12 Common Money MistakesCredit & Debt

21 Restaurants Offering Free Food Right NowSaving Money

17 Ways to Have More Fun for Less MoneySave

House Hunters: Beware of These 6 Mortgage MistakesBorrow

30 Household Uses for Baby OilSave

25 Ways to Spend Less on FoodMore

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

5 Surprising Benefits of Exercising Outdoors in WinterFamily

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

The True Cost of Bad CreditCredit & Debt

10 Companies With the Best 401(k) PlansGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

6 Stores With Awesome Reward ProgramsFamily

6 Ways to Save More at Lowe’s and The Home DepotSave

6 Healthful Treats for Your DogFamily

New Study Ranks the Best States in the U.S.Family

Thousands of Millionaires Moving to 1 Country — and Leaving AnotherGrow

Strapped for College Costs? How to Get the Most From FAFSABorrow

6 Overlooked Ways to Save at Chick-fil-AFamily

Ask Stacy: What’s the Fastest Way to Pay Off My Mortgage?Borrow

Where to Sell Your Stuff for Top DollarAround The House

8 Ways to Get a Good Price on a Shiny New AutoCars

Ask Stacy: How Do I Start Over?Credit & Debt

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

30 Awesome Things to Do in RetirementCollege

14 Super Smart Ways to Save on TravelSave

The Rich Prefer Modest Cars — Should You Join Them?Cars

You’ll Soon Pay More to Shop at CostcoSave

10 Ways to Save When Your Teen Starts DrivingFamily

Most clubs require that you pay dues to belong, but there's one type of club that might pay you to show up! If you're a beginning investor interested in making both money and friends, take a look at investment clubs.

Many people are afraid of investing in the stock market, and for good reason. If you’re not some combination of smart, careful or lucky, you can lose money in a hurry. On the other hand, the lure of the stock market is powerful: There aren’t many investments that can return 70% in a little more than one year. That’s how much the stock market has gone up between the lows of March 2009 and April 2010.

What’s a beginning (or nervous) investor to do? Learn and earn at the same time by joining or starting an investment club. Investment clubs are a simple idea that’s been around for more than 50 years: Get some people together, throw $20 – $50 each monthly into a club account, share the research work, then invest your club’s money according to majority vote.

Meet some members of an investment club and listen to them share their experiences by watching the video below, then meet me on the other side for more.

So, an investment club allows people to get together once a month in a social setting, pool their resources and divide the research required to pick some good stocks. And what they learn as a group they can then take home and use to invest individually.

The oldest organization helping people find and/or form investment clubs is the National Association of Investment Clubs, or NAIC. On their website, BetterInvesting, you can find a chapter (basically a geographic area), and then find a club within that chapter. They’ll also hook you up with all the info you’ll need to start your own club along with the education you’ll need to successfully learn to pick your stocks and mutual funds. To access all that, however, you’ll have to become a member for $79/yr.

While your initial temptation may be to join an ongoing investment club, it may be harder than it seems. There’s no shortage of clubs out there (NAIC claims 25,000 in North America alone), but many aren’t looking for new members, and those that are might not appeal to you. For example, the members of the club we visited were mostly retirees. If you’re 22, that might not be your ideal scenario. The perfect club is one where you fit in and can enjoy your fellow members socially as well as intellectually.

So if you don’t find an existing club you’d like to join, get a few friends or co-workers together and create your own. As I said above, NAIC can provide everything you need to get started. Another site you might try is Bivio. For $99 a year, they’ll track your club’s activity and handle the requisite tax forms. Of course, if you’re sharing the workload, keeping track of investments on a free website like Yahoo! Finance or MSN Money and doing taxes together once a year isn’t too bad.

Want to know more? Motley Fool did a nice series on investment clubs you should check out called Introduction to Investment Clubs.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: Lookin’ Good! How to Get a Killer Deal on Eyeglasses

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,960 more deals!