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Financial Info

1. When choosing partners, make sure everyone is of "like mind".  If
   some people are penny pinchers and some act like they won the 
   lottery YOU ARE BOUND TO HAVE FIREWORKS!
2. Try to get everyone to read "The Beardstown Ladies", it's written
   in plain English, it's not boring (it even has recipes) and it 
   covers all the basics. If someone doesn't read it, they won't have
   a clue as to what is going on with THEIR MONEY and chances are they
   never will! 
3. Become a partnership (for tax purposes) and get all your bylaws
   DOWN ON PAPER. A good reference for this is "The Beardstown Ladies"
   and the NAIC manual.
4. Become a member of NAIC. They a have all kinds of tools for you to
   to work with. For the cost of membership ($14) you receive "Better
   Investing Magazine". It contains great articles on all types of 
   investing, investing and other investment clubs.

   National Association of Investors Corporation
   711 West Thirteen Mile Road         PHONE (810) 583-NAIC {6242}
   Madison Heights, MI 48071           FAX (810) 583-4880

5. Make Investment Club Financial Accounting Software (available at
   a discount through NAIC) your FIRST PURCHASE PRIORITY! Keeping
   track of everything can be a nightmare, not to mention a paper
   jungle. The longer you wait, the more complicated it will be! Do
   yourself and your Financial Officer a favor! If you don't, buy
   stock in Clairol. (If you have any hair left!)
6. Consider using a Discount Broker or an Online Broker. It's great
   having the guidance in the early stages, but the whole point of 
   the club is to do your own research and make your own decisions.
   Why spend hours choosing where to invest then pay someone a large
   percent just to execute the order.
7. Consider DRIPS. Dividend Reinvestment Programs require as little as
   one share purchased through a broker. After you join the plan, all 
   dividends are automatically reinvested back into the company. Some
   have direct purchase plans. Each month (different companies have
   different time frames) you can send a check off for purchasing 
   more stock without having to go through a broker. (Cutting out the
   middle man) Some great companies are DRIPS. Intel, Merck and Home
   Depot are just a few.
8. Dollar Cost Averaging. Works real well in combination with DRIPS.
   Set a specific amount of money aside each month for a specific
   company. Say you set aside $100 for XYZ company. One month the 
   shares cost $20 per share. You can purchase 5. The next month the
   shares have gone up to $25. You can only purchase 4. This system 
   helps smooth out the ups and downs of the market. When the price is
   low you get more, when the price is high, you get less. In the long
   term you end up paying less per share.
9. Assign each partner a job or a stock to follow. (Helps if the stock
   goddesses are online) It keeps people involved, and if you don't, a
   few people end up doing All the work.
10. DO YOUR HOMEWORK! If one person doesn't do their homework, you
   lose track of stocks and you could LOSE MONEY. Which goes back to 
   tip #2, if they don't read the book, there's a good chance they
   won't do the homework either.  CONSIDER THIS WHEN CHOOSING
   PARTNERS!
11. Keep things interesting. This can be hard at times. But if you
   fail to follow tip #1, it'll probably get REAL INTERESTING! Our 
   club is planning a trip to one of our "companies", Dave & Buster's.
   It's a restaurant/entertainment establishment. There's Nothing
   Quite Like It!
12. Have fun! We've pointed out the bumps. Starting a club can be
   life changing. Next thing you know, you will be talking about new
   drugs in the pipeline, mergers, takeovers and splits. It feels good
   knowing you're during something about the years ahead and it gives
   you the knowledge to have better control over your money. Most 
   women start buying stock on their own outside the club soon after.
   Even our children are purchasing stock with their birthday and 
   Christmas money. It's the trickle down effect!