2-Minute Money Manager: Should I Join an Investment Club?

Group Meeting
Photo by g stockstudio / Shutterstock.com

Welcome to the 2-Minute Money Manager, a short video feature answering money questions submitted by readers and viewers.

Today’s question is about joining the club; specifically, an investment club.

I’ve done a few TV news stories over the years on investment clubs, and every time I’ve visited one, I’ve left impressed. While I can’t claim firsthand membership experience, they sure seem like a great way to pool intellectual, financial and social resources. In short, a potentially cool way to make both friends and money.

Watch the following video, and you’ll pick up some valuable info. Or, if you prefer, scroll down to read the full transcript and find out what I said.

You also can learn how to send in a question of your own below.

For more information on this topic, check out “Afraid of the Stock Market? 7 Steps to Overcome Fear of Investing” and “10 Tips for Sane, Successful Stock Investing.” You can also go to the search at the top of this page, put in the word “investing” and find plenty of information on just about everything relating to this topic.

Also, remember that if you need anything from a better credit card to help with debt, you’ll find it in our Solutions Center.

Got a question of your own to ask? Scroll down past the transcript.

Don’t want to watch? Here’s what I said in the video

Hello, everyone, and welcome to your 2-Minute Money Manager. I’m your host, Stacy Johnson. This answer’s brought to you by MoneyTalksNews.com, serving up the best in personal finance news and advice since 1991.

Let’s get right to today’s question. It comes to us from Mark, and it’s a short one:

“Should I join an investment club?”

Here are three things to know.

Thing No. 1: What’s an investment club?

It’s simply a bunch of people who get together, pool their money and knowledge, pick stocks and share profits. I’ve covered several of these as a TV news reporter, and my impression of them invariably has been favorable.

After scoping out a club and deciding if it’s a good fit, you can decide to join. Then, you’ll get together periodically, typically monthly. There’s no set number of people; it could be just a few, it could be 10 or more.

Traditionally, clubs meet in person, although there’s no law against doing it all online. You put in an agreed-upon amount, maybe $50 or $100 a month. Then, when you get together, you cover the fundamentals of investing and come up with ideas. After learning the ropes, you’ll pitch a stock idea of your own and listen to pitches from other members. After ideas are pitched, they’re critiqued, then voted on. If it passes muster, it gets invested in.

Thing No. 2: Finding an investment club

When looking for a club, check out the National Association of Investors Corp., or NAIC. To do that, visit Betterinvesting.org. Here, you can search and see if there’s already a club near you looking for members. You’ll also find lots of information on how clubs work, including how to set one up yourself. Joining NAIC costs about $100 a year, but you can go to Betterinvesting.org and get lots of great info without paying a dime.

Thing No. 3: Gain knowledge, then take it home

One of the coolest things about an investment club is that you can take the knowledge you learn there and apply it to your personal investments outside the club. Maybe you’re investing $50 monthly within the club, but you can take what you learn there and invest $500 outside the club.

Bottom line? Investment clubs are a super way to learn how to analyze and buy stocks. They’re also a great way to expand your circle of friends. If you’re interested in investing, see if there’s a club near you, or maybe even start one yourself. And if you’d like more info on investing, you’ll find it at MoneyTalksNews.com. Just do a search for “investing.”

I’ll see you right here next time!

Got a question you’d like answered?

You can ask a question simply by hitting “reply” to our email newsletter, just as you would with any email in your inbox. If you’re not subscribed, fix that right now by clicking here. It’s free, only takes a few seconds and will get you valuable information every day!

The questions I’m likeliest to answer are those that will interest other readers. In other words, don’t ask for super-specific advice that applies only to you. And if I don’t get to your question, promise not to hate me. I do my best, but I get a lot more questions than I have time to answer.

About me

I founded Money Talks News in 1991. I’m a CPA, and have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.

Got any words of wisdom you can offer on today’s question? Share your knowledge and experiences on our Facebook page. And if you find this information useful, please share it!

Got more money questions? Browse lots more Ask Stacy answers here.

How to find cheaper car insurance in minutes

Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.

Read Next
15 Ways to Never Pay Full Price for Anything
15 Ways to Never Pay Full Price for Anything

A good deal can get you 50 percent off — and more. Here are 15 tips to get you there.

8 Secrets of an Expert Thrift Store Shopper
8 Secrets of an Expert Thrift Store Shopper

Here’s how a veteran thrift shopper scores the best deals — and turns a profit from them.

18 Amazon Purchases That We Are Loving Right Now
18 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

7 Tricks to Cleaning Your Bathroom in Minutes
7 Tricks to Cleaning Your Bathroom in Minutes

These tips can get your bathroom sparkling with little time and no elbow grease.

These 13 States Tax Social Security Income
These 13 States Tax Social Security Income

Uncle Sam is not the only one looking for a piece of your retirement income. Is your state on this list?

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
This Gas Station Scam Is Victimizing More Drivers
This Gas Station Scam Is Victimizing More Drivers

For the second straight year, a growing number of Americans believe they’ve fallen prey to this scam.

This Is the Most Popular Age for Claiming Social Security
This Is the Most Popular Age for Claiming Social Security

Both men and women are most likely to start receiving Social Security benefits at this age.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?
Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?

You could save more than $30,000 by setting aside these costly expenses for just one year.

6 Things You Should Never Buy at Trader Joe’s
6 Things You Should Never Buy at Trader Joe’s

We love Trader Joe’s for plenty of reasons. But think twice about this handful of products.

Don’t Toss These 7 Household Items — Sell Them
Don’t Toss These 7 Household Items — Sell Them

Here’s how to earn cash as you give new life to these unwanted items.

6 Legal Documents Retirees Need — but Don’t Have
6 Legal Documents Retirees Need — but Don’t Have

Few retirees have these documents that are crucial to their golden years — especially during a pandemic.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

7 Unusual Ways to Declutter Your Home
7 Unusual Ways to Declutter Your Home

Tired of possessions weighing you down? Here are seven ways to declutter painlessly and effectively.

The 15 Worst States for Retirees in 2020
The 15 Worst States for Retirees in 2020

Based on dozens of metrics tied to affordability, quality of life and health care, these are not ideal places to spend retirement.

11 Expenses That Quietly Drain Your Wallet
11 Expenses That Quietly Drain Your Wallet

It’s scandalously easy to overspend in these areas of your life.

5 Ways Joe Biden Wants Social Security to Change
5 Ways Joe Biden Wants Social Security to Change

Here’s where Biden — as well as Trump — stands on the future of the Social Security retirement system.

9 Dumb Ways You Are Ruining Your Home Value
9 Dumb Ways You Are Ruining Your Home Value

Homeowners, beware these mistakes that can drive away potential buyers.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

7 Tips for Building an Emergency Stockpile
7 Tips for Building an Emergency Stockpile

A pandemic or natural disaster could leave you reliant on your existing food supply. Is your pantry prepared?

10 Deep Discounts Available on Amazon This Friday
10 Deep Discounts Available on Amazon This Friday

These items are all steeply discounted — but the deals won’t last long.

10 Things That Really Are Free on Amazon
10 Things That Really Are Free on Amazon

These freebies are available to anyone — no Prime membership necessary.

21 Things You Should Always Buy at a Dollar Store
21 Things You Should Always Buy at a Dollar Store

Dollar stores have great bargains on both everyday and occasional purchases.

15 Outrageously Overpriced Products — and How to Save on Them
15 Outrageously Overpriced Products — and How to Save on Them

Retailers mark up products by hundreds of times their cost — but you don’t have to pay the premium.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.