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withdrawal fee
Thank you all for your information on the Withdrawal fee topic.  
 
On Tuesday 26/08/2014 at 11:34 am, John Rice wrote:
I agree with Mike. We do have a withdraw fee, although we should call it a penalty to discourage someone from joining and then leaving early. A withdraw disrupts the club by  having to give up a stock that we like. If someone leaves within the first year it is a 10% charge and it goes down by 2% each year.  So if you are in the club for 5+ years then there is no fee except for what the broker might charge.  We have only had 3 people withdraw within 2-3 years of being in the club and they were charged $0, $47 & $80.

John Rice
ABODI Investment Club


On Tuesday, August 26, 2014 8:05 AM, Mike Jones via bivio.com <user*21595500001@bivio.com> wrote:


How can a club justify a withdrawal fee that "can amount to a sum of several hundred dollars"?  It's the partner's own money and, except for actual costs encountered in effecting the withdrawal, s/he should get it back.  This type of fee rewards the 'last man standing' who will reap the fees of all who departed before him/her.  That opinion aside, Bivio has a place to specify the fee on the withdrawal form.
 
Mike Jones
Wall$treet Wannabees
Bloomington, MN


From: Laurie Frederiksen <laurie@bivio.biz>
To: The Club Cafe <club_cafe@bivio.com>
Sent: Monday, August 25, 2014 2:15 PM
Subject: Re: [club_cafe] withdrawal fee

Hi,

Here are the instructions for entering a withdrawal:

https://www.bivio.com/site-help/bp/Member_Withdrawal_Help

The withdrawal fee is one of the pieces of information you include on the withdrawal form.  When you accept the entry,  bivio makes all the accounting entries you need to record things properly.



Laurie Frederiksen
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www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
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On Mon, Aug 25, 2014 at 2:50 PM, <mmoriarty@crocker.com> wrote:
 
 Hello All, 
I am writing again about our club's withdrawal fee.  Our club charges a withdrawal fee which at times can amount to a sum of several hundred dollars.  How should this be entered in Bivio accounts so that the withdrawing member's records are correct and the club records show the profit?  






I don't understand the logic of your stepped-penalty fee.  If someone leaves the club "early" it is unlikely the Units/Market Value is very large, and cash contributions collected over the two months withdrawal period (in most Partnership Agreements) should be enough for payout, without selling or exchanging stock.  It also gives the new-ish member and the established partners a chance to settle in and realize this won't work, and thus allows the new partner to withdraw gracefully.  Any negative impact of such a withdrawal seems to be far outweighed by the benefits of allowing an easy exit.
 
Roy Chastain

"We make a living by what we get, we make a life by what we give."  (Ronald Reagan, 8/8/1992)

From: "mmoriarty@crocker.com" <mmoriarty@crocker.com>
To: club_cafe@bivio.com
Sent: Tuesday, August 26, 2014 2:05 PM
Subject: Re: [club_cafe] withdrawal fee

Thank you all for your information on the Withdrawal fee topic.  
 


On Tuesday 26/08/2014 at 11:34 am, John Rice wrote:
I agree with Mike. We do have a withdraw fee, although we should call it a penalty to discourage someone from joining and then leaving early. A withdraw disrupts the club by  having to give up a stock that we like. If someone leaves within the first year it is a 10% charge and it goes down by 2% each year.  So if you are in the club for 5+ years then there is no fee except for what the broker might charge.  We have only had 3 people withdraw within 2-3 years of being in the club and they were charged $0, $47 & $80.

John Rice
ABODI Investment Club


On Tuesday, August 26, 2014 8:05 AM, Mike Jones via bivio.com <user*21595500001@bivio.com> wrote:


How can a club justify a withdrawal fee that "can amount to a sum of several hundred dollars"?  It's the partner's own money and, except for actual costs encountered in effecting the withdrawal, s/he should get it back.  This type of fee rewards the 'last man standing' who will reap the fees of all who departed before him/her.  That opinion aside, Bivio has a place to specify the fee on the withdrawal form.
 
Mike Jones
Wall$treet Wannabees
Bloomington, MN


From: Laurie Frederiksen <laurie@bivio.biz>
To: The Club Cafe <club_cafe@bivio.com>
Sent: Monday, August 25, 2014 2:15 PM
Subject: Re: [club_cafe] withdrawal fee

Hi,

Here are the instructions for entering a withdrawal:

https://www.bivio.com/site-help/bp/Member_Withdrawal_Help

The withdrawal fee is one of the pieces of information you include on the withdrawal form.  When you accept the entry,  bivio makes all the accounting entries you need to record things properly.



Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio
Follow Us on Google+


Click here to
Subscribe to the Club Cafe email list.  Click here to  Unsubscribe





On Mon, Aug 25, 2014 at 2:50 PM, <mmoriarty@crocker.com> wrote:
 
 Hello All, 
I am writing again about our club's withdrawal fee.  Our club charges a withdrawal fee which at times can amount to a sum of several hundred dollars.  How should this be entered in Bivio accounts so that the withdrawing member's records are correct and the club records show the profit?  








Of the 2 people that were charged the fee one of them would of taken 3 months of contributions to pay off and the other would of taken 7 months of contributions.  One of the members left purely because he literally thought the end of the US was coming and wanted to pull all of his money out of the market before it collapse. The other one moved.  As per the recommendation of Bivio we transferred our most appreciated stocks which didn't sit well with the remaining members.

John Rice


On Tuesday, August 26, 2014 2:20 PM, Roy Chastain via bivio.com <user*26255300001@bivio.com> wrote:


I don't understand the logic of your stepped-penalty fee.  If someone leaves the club "early" it is unlikely the Units/Market Value is very large, and cash contributions collected over the two months withdrawal period (in most Partnership Agreements) should be enough for payout, without selling or exchanging stock.  It also gives the new-ish member and the established partners a chance to settle in and realize this won't work, and thus allows the new partner to withdraw gracefully.  Any negative impact of such a withdrawal seems to be far outweighed by the benefits of allowing an easy exit.
 
Roy Chastain

"We make a living by what we get, we make a life by what we give."  (Ronald Reagan, 8/8/1992)

From: "mmoriarty@crocker.com" <mmoriarty@crocker.com>
To: club_cafe@bivio.com
Sent: Tuesday, August 26, 2014 2:05 PM
Subject: Re: [club_cafe] withdrawal fee

Thank you all for your information on the Withdrawal fee topic.  
 


On Tuesday 26/08/2014 at 11:34 am, John Rice wrote:
I agree with Mike. We do have a withdraw fee, although we should call it a penalty to discourage someone from joining and then leaving early. A withdraw disrupts the club by  having to give up a stock that we like. If someone leaves within the first year it is a 10% charge and it goes down by 2% each year.  So if you are in the club for 5+ years then there is no fee except for what the broker might charge.  We have only had 3 people withdraw within 2-3 years of being in the club and they were charged $0, $47 & $80.

John Rice
ABODI Investment Club


On Tuesday, August 26, 2014 8:05 AM, Mike Jones via bivio.com <user*21595500001@bivio.com> wrote:


How can a club justify a withdrawal fee that "can amount to a sum of several hundred dollars"?  It's the partner's own money and, except for actual costs encountered in effecting the withdrawal, s/he should get it back.  This type of fee rewards the 'last man standing' who will reap the fees of all who departed before him/her.  That opinion aside, Bivio has a place to specify the fee on the withdrawal form.
 
Mike Jones
Wall$treet Wannabees
Bloomington, MN


From: Laurie Frederiksen <laurie@bivio.biz>
To: The Club Cafe <club_cafe@bivio.com>
Sent: Monday, August 25, 2014 2:15 PM
Subject: Re: [club_cafe] withdrawal fee

Hi,

Here are the instructions for entering a withdrawal:

https://www.bivio.com/site-help/bp/Member_Withdrawal_Help

The withdrawal fee is one of the pieces of information you include on the withdrawal form.  When you accept the entry,  bivio makes all the accounting entries you need to record things properly.



Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio
Follow Us on Google+


Click here to
Subscribe to the Club Cafe email list.  Click here to  Unsubscribe





On Mon, Aug 25, 2014 at 2:50 PM, <mmoriarty@crocker.com> wrote:
 
 Hello All, 
I am writing again about our club's withdrawal fee.  Our club charges a withdrawal fee which at times can amount to a sum of several hundred dollars.  How should this be entered in Bivio accounts so that the withdrawing member's records are correct and the club records show the profit?  










"sell losses, transfer gains"  However, the club should always determine FIRST which stocks (whole or portions) they want to remove from the portfolio.  
 
My club has "strong" guidelines around portfolio makeup so that comes into play too when we evaluate our portfolio to execute a withdrawal.
 
Bob Mann
On August 26, 2014 at 5:58 PM John Rice <rice.j1969@att.net> wrote:

Of the 2 people that were charged the fee one of them would of taken 3 months of contributions to pay off and the other would of taken 7 months of contributions.  One of the members left purely because he literally thought the end of the US was coming and wanted to pull all of his money out of the market before it collapse. The other one moved.  As per the recommendation of Bivio we transferred our most appreciated stocks which didn't sit well with the remaining members.
 
John Rice