An investment club is a great way to learn about investing. While there are hundreds of thousands of clubs in existence, it may be hard to find one with an opening, but it’s so easy to create one that there is really no need to find one at all! Creating your own gives you some advantages as well, like choosing members who have things in common with you, such as knowing nothing about investing. Statistics show that investment clubs made up of women outperform male clubs, with average earnings at 32% and 23% respectively. So grab a dozen or so of your favorite females and start a club! Following are six steps to get you going! 

Gathering Members 

Your members are the key to the club. You want to pick the right people, people that you want to have a relationship with for at least several years. The great part about an investment club is that everyone is learning together, so don’t be afraid to ask someone who has no experience in the stock market. Set a limit for the number of members, between 10-15 is usually enough to have a substantial amount to invest, without being too complicated. 

Set Contribution Amounts 

Each member will contribute a certain amount each month. To keep things simple for accounting you want to start with a set amount like $25 or $50 a month. It can be raised later, or once you are comfortable with accounting or have bought software to do it for you, each member can contribute as much as they want each month. Remember that the club is for learning, so you can invest on your own in any companies that you have researched in the group, you aren’t limited to just the club contributions.  

Meetings 

You need to decide the format of the meetings, online or in real life, and how often you will meet. Online is very popular now, and gives you a chance to expand your membership to friends who aren’t in the area. Plus it’s just easier to wear your pajamas and sit at your computer than having to trudge out in the snow. Meeting once a month is usually sufficient, and many online clubs plan a special trip once or twice a year to meet face to face. The club is supposed to be fun, so planning a weekend getaway for the girls is a great opportunity! 

Form a Partnership 

Investment clubs are formal legal structures. This ensures everyone’s rights. You will need to make some Operating Procedures, giving guidelines for how the club will be run. Each member must sign the operating procedures, then fill out form SS4 from the IRS and apply for an EIN by calling the IRS at 1-800-829-3676. In some areas you may also need to file the partnership with the County Clerk, a simple phone call will let you know! 

Choose a Strategy 

The members need to agree on what type of strategy you will use when buying or selling a stock. There are tons of different strategies including The Motley Fool’s Rule Maker’s and the Chicks Dozen. You may want to have each of your members read a book and share the different strategies until you come up with one that works for your club. 

Set up a Message Board

The Internet will help you stay in touch with all your members. A message board can help you share the meeting topics before the meeting so everyone is prepared, help you share research, and more. Several sites have places for you to start your own club board, including The Motley Fool and Chicks Laying Nest Eggs.