Investment clubs
Category: Business & Finance
Expert: Carol CrostaCarol Crosta of BetterInvesting can answer your questions about investment clubs and offer general advice on how to evaluate stocks, bonds and mutual funds. She is not licensed to recommend specific stocks or give investment advice.
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Most Recently Answered Questions
Questions 1 - 12 of 28 (Page 1 of 3)Q: Two questions:
1. I am beginning the process of disbanding my stock club. Do you have any references I can use as a guide? I have not had much luck finding information online other than the basic steps. I need help with closing the books.
2. We have a member that moved out of state and we are no longer able to locate her. I don't know what legally needs to be done with her share of the club. Who would the appropriate person to talk to on this or where might I find information to guide me?
A: You might check with BetterInvesting and see if they have any information on disbanding your club. You might have to check with your state about what to do with the money for the partner that you can no longer locate. Many states have departments that keep unclaimed property.
Q: What state forms must be filed for a 11 member investment club.
If filing a partnership with the SOS are investment clubs required to pay the $800 annual taxes to FTB?
A: This would be a good quesion for your CPA.
Q: Are there any classes in investing at any of the local colleges? Is there another way to learn about investing in a class type setting other than the investment clubs?
A: You can always check the local college web sites for classes on investing. The Sacramento Area Chapter BetterInvesting does have classes and the national web site www.betterinvesting.org has online classes several times per year.
Carol Crosta
Director
Sacramento Area Chapter
Q: The Dreyfus Genl Money Market Clas B Fund values its shares at $1.00. Could the shares fall below $1.00 and suffer a loss ? Last week the Wall Street Journal had an article on Auction Securities where UBS wrote down customers acct values.
A: Any stock or fund can always fall to zero. Do your research and act accordingly.
Q: My friend and I just started an investment club and would like to invest in three different DRIP programs; our question is " should we put the stocks we purchase in the club name or one of our names?
A: Always put the stocks in the club name if you are an investment club. If you are just a group of friends studying stocks you might each buy your own stocks - not using combined money.
Q: I and 3 associates are trying to get a project off the ground. We have conbined 90 years management in our field. We have been looking for an Angel Investor but in spite of a knockout Executive Summary and Business Plan along with REALISTIC cash flow projections covering 3 years showing astronomical profits, no one will look at our project because it isn't a "high tech" type of company, which seems to be necessary today. Frankly, it's a new way to sell used cars that have been pre-restored to original factory specifications for less than 1/2 the cost of a new car. An investor or investors (we need $125,000) would be sharing in a profit pool in just the first year of 5 times that amount and by the third year of 36 times that amount so this is not without significant return but no one seems to want to consider a venture in our field. I am writing to you in hopes you know of an Angel Investor or group which may have an open mind to solid retail ventures.
A: No Thank You
Q: I have a bullet proof guaranteed to succeed business idea. I have written a concept letter and a proposal but I don't know where to go from there as far as presenting it to investors. How do I find investors serious enough to help build an awesome business?
(My apologies for the long question)
A: No Thank You
Q: I'm an expert equity indexes(S&P) future options trader. I would like to invite you all to visit my web page where I have a brief description about my strategies. And please, feel free to contact me with any questions about options trading. Regards,
www.alphafutures.com under Alternative Investment
A: No Thank You
Q: We are a 25yr old club(partnership) and have always issued K-1s to our partners however the club has never submitted a 1065 to IRS. What should we do?
A: You may want to ask your CPA this question or call on the IRS help line for advice.
Q: My wife and I had a basic living trust created ($1200)last year. We have one adult heir,a home, and a few basic assets.
In the event of a death will we need any services from the attorney that will be additional fees?
A: This is not something that this column is involved doing.
Q: i recently invented a golf training aid and im looking for an investor. I need 13k to put my product into production and finalize the patent process and market my product i need a minimum of 4300 to get started. im will to offer 1% per thousand owned do you know anyone who would be interested or can you suggest a group to contact
A: This is not something that is the purpose of this column.
Q: What is the minimum threshold for having to report capital gains on schedule D? My total capital gains for year 2011 is $459. I notice on schedule B, page 2, that the minimum for interest & ordinary dividends is $1500. However I cannot find a minimum for cap gains on schedule D. I have searched numerous sites on line and have found no clear answer. I will file a standard 1040 but my total earnings for last year were below the $5800 single deduction and I don't anticipate owing the IRS anything. I am not required to attach a Schedule B. How can I find out if I am required to attach a schedule D and form 8949? I thank you for helping me and I look forward to your definitive answer. Warm regards, Bud
A: This is a good question for your CPA.
