Getting Started: Establishing a cash/checking account for an investment club
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Getting Started: Establishing a cash/checking account for an investment club Debbie Brown wrote.....
We are just getting
started on setting up this club. I want to know how we set up our money accounts
so we may begin the investment process. I haven't seen this section. As a
beginner in this I need all the basic information on this to cover with our
friends who are also new to this.
Within the bivio accounting software you can set up
a brokerage account and/or a bank account. Most clubs find that a money
market account with check writing privileges that is associated with their
brokerage account will be sufficient for all of their club's cash
needs. This is usually the most cost effective
method of maintaining a club cash account because the money market fund pays
interest and these checking privileges are usually free.
On the other hand, some clubs set up a checking
account at a bank, S & L, or their Credit Union. While in some
cases these accounts are free, many institutions charge rather high fees for
these small "business" accounts. In any case, it pays to
shop around.
Once you have opened a brokerage account you can
begin investing, either with funds sent from your cash account outside of the
brokerage account or with funds already deposited in the cash account associated
with your brokerage account.
If you have other questions or if we can help
in any way feel free to write Rip or me at Trez_Talk@bivio.com
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