these issues because everything is done on an individual basis.
One of the biggest problems facing traveling clubs, however, is members who fail to fulfill their club responsibilities. Traveling club members may not care as much about letting the club down, whereas traditional investment club members may be more dedicated because there is a shared financial commitment, says Uzzle. Traditional clubs could impose consequences on slacking members, such as kicking them out and thereby exposing them to the tax ramifications of early withdrawal. (The threat of losing money often inspires commitment.) Traveling clubs have no such leverage to keep their members in line.
Furthermore, Uzzle explains, “Members who belong to traveling clubs may take their time before buying recommended stock.” In fact, only four of the 10 members of The Young Investing Millionaires actually own stock. You may want to come up with a screening process, such as an investor’s survey, to help weed out wishy-washy people. However, once you find the right mix of participants, traveling investment clubs are an ideal way to learn to invest with a group, but keep your money to yourself.
|Young Investing Millionaires Club|
|Dow Chemical||NYSE: DOW|