to do smart investing so that we could build a nest egg for ourselves, our children and our families.”
According to the NAIC, club members who begin their program in their 20s and maintain it until their departure from the labor force 40 years later could amass $1.9 million at a rate of return of 10%. Some clubs have been around for as long as 50 years, but achieving such longevity requires keeping club members in sync and maintaining their activity level.
In all, the idea is to buy and hold a portfolio of well-researched stocks. As members become more knowledgeable and the amount of money under management grows, gains often begin to increase exponentially. Adhere to the seven principles set forth and you may be able to accumulate enough wealth to avoid any money blues during your golden years.
Resource guide for investment clubs
Coalition of Black Investors (COBI)
P.O. Box 30553
Winston-Salem, NC 27130-0553
For a $10 fee for investment clubs plus $5 per member, you’ll receive lists of African American brokers and brokerage firms, a free subscription to Better Investing magazine and other educational materials.
National Association of Investors Corp. (NAIC)
P.O. Box 220
Madison Heights, MI 48068
This organization represents more than 37,000 clubs and is the leading authority on running a profitable and fun investment club. The membership fee is $39 for individuals and $35 per club plus $14 per member.
Starting And Running A Profitable Investment Club by Thomas E. O’Hara and Kenneth S. Janke Sr., (Time Books, $15). The official book of the NAIC.
The NAIC monthly magazine covers online investing, stock analysis and investment club profiles. The annual subscription price is $24 for nonmembers.
This quarterly online newsletter, founded by the New Freedom Investment Club, offers stock recommendations and advice on various investment styles.
Motley Fool (www.fool.com)
Rapid Research (www.rapidresearch.com)
Zack’s Investment Research (www.zacks.com)
Securities and Exchange Commission’s EDGAR database (www.sec.gov/edgarhp.htm)