You Can Take It With You - Black Enterprise

Page: 1 2

  • Entrepreneurship
  • Money
  • Leadership
    • Career
    • Education
    • Jobs
    • Men
    • Women
  • Technology
  • Lifestyle
  • Events
    • Black Men Xcel
    • Entrepreneurs Summit
    • TechConneXt
    • Women of Power
    • American Black Film Festival
    • ABFF Honors
  • Lists
  • Magazine
  • Videos
  • TV Shows
    • Our World
    • Women of Power
25 black women who are changing the world

January/February 2018

Black Enterprise
  • Entrepreneurship
  • Money
  • Leadership
    • Career
    • Education
    • Jobs
    • Men
    • Women
  • Technology
  • Lifestyle
  • Events
    • Black Men Xcel
    • Entrepreneurs Summit
    • TechConneXt
    • Women of Power
    • American Black Film Festival
    • ABFF Honors
  • Lists
  • Magazine
  • Videos
  • TV Shows
    • Our World
    • Women of Power

You Can Take It With You

by  Carolyn M. Brown
October 1, 2002

Page: 1 2

No partnership agreement. No pooled monthly contributions. No shared brokerage account. No tax ID or annual tax filings to prepare. If you’re thinking this doesn’t sound like a traditional investment club, you’re right. A club where members don’t make monetary contributions to a shared club account is referred to as a “traveling investment club.” With a traveling club, members invest on their own. Therefore, if someone decides to leave the club, the common stock he or she buys stays with that individual owner — it travels with the person who purchased it.

It was about five years ago when Beth Hamm, a trustee and West Michigan chapter director of the National Association of Investment Corps. (NAIC), coined the term traveling investment club to describe the “new twist” on a club she was hoping to start in her son’s school. One problem with youth investment clubs is that members rarely stay for more than two years. The flexibility of a traveling club allows students to join, graduate school, and leave the group without creating reams of paperwork, says Hamm. Since there is no single club account with stock to divide, there is no need to create a legal partnership.

In 1999, the Young Investing Millionaires Club in Detroit started out with 20 boys (aged 14 and under). “It took us about a year to get the partnership agreement written up and for all of the parents to approve it,” says Peggy A. Uzzle, who co-founded the club with her husband, Eric, under the direction of Gail Perry-Mason, first vice president of financial services for Fahnestock & Co. Inc. in Grosse Pointe Farms, Michigan. “When we went to get the federal ID number, which is required for a partnership, an IRS agent informed us about the penalties associated with a club if it fails to file taxes on time — $50 per month per club member for every month that you are late. With 20 members, that would have been $1,000 a month in tax penalties,” Uzzle explains. The traveling club was a better alternative. Today, there are about 10 Young Investing Millionaires, including Uzzle’s son, Eric Jr., 14. His goal is to invest $20 a month from his allowance by purchasing stocks through the NAIC’s low-cost investment plan.

Traveling clubs are not just for kids. They are ideal for individual investors who want a supportive group environment in which to learn how to invest, but who don’t necessarily want to deal with the hassles of investing as a group. Such clubs hold monthly meetings, elect officers, and make stock recommendations just like traditional investment clubs. Members vote on stock purchases, but it is up to the individual to actually go out and make the trade.

The key difference between traveling and traditional clubs has to do with accounting. With a traditional club, the treasurer collects member contributions, creates valuation statements, runs an annual audit, deals with bank and brokerage accounts, and assesses late-payment penalties on the club’s delinquent members. Traveling clubs don’t have to deal with

Page: 1 2

Join the Conversation


MORE ON BlackEnterprise.com
Education
The Re-segregated South: K-12 Integration Is Losing Ground
by  Robin White Goode
black tech podcast
Featured Stories
‘BE THE CODE’ PODCAST: He’s Empowering Children through Play
by  Sequoia Blodgett
Entrepreneurship
Day Runner Inc. and BLKTECHCLT Are Cultivating Entrepreneurship in Charlotte
by  Lydia Blanco

TRENDING

  • Baltimore May Sell Homes for $1 to Revive Neglected…
  • Spotify is Looking for New Female Podcasters of Color
  • Meet Melissa Harville-Lebron: The First Black Woman to Own a
  • Free Money? The Top 10 Grants Available to Black, Minority…
  • 7 Top Grants Or Free Money For Black Women Entrepreneurs
  • U.S. Small Business Administration and Milken Institute…
  • 5 Books Every Millennial Entrepreneur Must Read
  • Top WNBA Salaries vs. NBA Salaries: Who Earns More? [2017…
  • Meet the Dallas Mavericks’ New CEO
  • Chance the Rapper Hosts Holiday Party to Help the Homeless
Women of Power WOMEN OF POWER SUMMIT
Entrepreneurs Summit ENTREPRENEURS SUMMIT
American Black File Festival AMERICAN BLACK FILM FESTIVAL
Our World OUR WORLD WITH BLACK ENTERPRISE
Women of Power TV WOMEN OF POWER TV
25 black women who are changing the world
SUBSCRIBE
GIVE A GIFT
CUSTOMER SERVICE
  • © 2018
  • BLACK ENTERPRISE
  • Management
  • About
  • Privacy Policy
  • Contact
  • Site Map
  • Masthead
  • Media Kit