spring 2004 vol. 9 no. 4                                                                                                                             Return to Contents
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Investing as a Team

Craig Hackler, Financial Advisor, Raymond James Financial Services

Testing the waters of the financial markets can be an intimidating experience. Many individuals have found that they can make the experience more rewarding, entertaining and successful by taking a team approach to investing. Investment clubs can be a functional and non-threatening way to experience the intricacies of the investment markets.

When you decide to organize an investment club, your first job is to decide how the members of your club are to be chosen. There are several ways you may get a group together. If you belong to an organization such as a neighborhood social club, church group, service club, veterans organization, or other club, you may have a ready-made group of friends who will be interested. If you live in an apartment or condominium complex, you may find a number of your neighbors will be interested in joining a club with you.
Many clubs are formed by people who work together. If you plan on drawing a group from the place where you work, it is best to select just half of your members and ask each member to bring in a friend/member from outside the organization. This adds a greater variety of experience to your membership.

There are three things to keep in mind in the selection of membership for the club. Most importantly, the members should enjoy one another’s company. You are beginning a long-term program which may last the rest of your life. A little variety in the occupations or interests of the members may be helpful in the club. There are, of course, many quite successful clubs where the membership has come from a single profession.

The members should agree on the kind of investment philosophy they wish to follow in order to prevent a fundamental disagreement at a later date. Very few clubs have been successful in using a short-term, speculative approach to investing. Those which have amassed large sums over the years have had a long-term investment outlook.

All prospective investment club members should be prepared to investigate and analyze securities and make periodic reports. The club offers a pleasant social opportunity, but anyone who regards the activity as simply “a night out” presents a problem for the club and may hinder its progress. The individual who recognizes that he/she is making a commitment that hopefully will involve them in a lifetime program of investing and financial study is likely to be the best member.
Finally, before going any further, be sure to consult a financial advisor who can answer organizational, tax and operational questions and provide investment direction to make your investment club experience a fulfilling one.

Craig Hackler holds the Series 7 and Series 63 Securities licenses, as well as the Group I Insurance license (life, health, annuities). Through Raymond James Financial Services, he offers complete financial planning and investment products tailored to the individual needs of his clients. He will gladly answer your questions. Call him at 512.894.3473 or 800.650.9517

Texas Paralegal Journal © Copyright 2003 by the Legal Assistants Division, State Bar of Texas.

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