A reader recently asked Can you offer a suggestion for structuring/formation of my family's investing activites. We want to invest our money, but are not sure of what is available to us. Can we form an investment club for our family, (at least initially), FLP, ...
Rip and I, the Trez_Talk guys, were recently asked I have about ten friends and we are interested in starting an investment club. I have dabbled in funds for quite some time now and my group wants me to be the president of the club. ...
A reader asks Would you have any information with regard to how beneficiaries of investment club members are treated, i.e. how they are addressed in the Bylaws? The treatment of beneficiaries in an investment club has gone through many gyrations. When the NCA software first ...
Dieter Louis wrote, We have an individual who is often two weeks late. The partnership wants me to reduce his units for the amount of the late period per our agreement. When I use the "two weeks late date," the valuation still calculates the same ...
Brad asked several great questions about some rather standard paragraphs found in many investment partnership agreements. "Any corporation or transfer agent called upon to transfer any securities to or from the name of the partnership shall be entitled to rely on instructions or assignments signed ...
Jerry, I'm the treasurer of a new club and we are in the process of writing our partnership agreement. Specifically, as treasurer, what issues should I be most concerned with? Let's finish our discussion of the treasurers' perspective of the partnership agreement by highlighting several ...
Norm Osterman wrote Being we are starting investment club #2 I am wondering if the correct procedure is to place an assessment fee on the members for startup costs. I did this prior with our other club but it might be better to use the ...
This is part of a continuing series on mergers, spin-offs, and stock splits. In early August of 2000, Ford Motor Company completed a recapitalization/merger plan. Under this plan, a shareholder could exchange stock for 1.748 shares of new Ford stock, or could receive 1 new ...
This is part of a continuing series on mergers, spin-offs, and stock splits. In early August of 2000, Ford Motor Company completed a recapitalization/merger plan. Under this plan, a shareholder could exchange stock for 1.748 shares of new Ford stock, or could receive 1 new ...
George Fernett wrote Lately, we have been hearing that we should "incorporate" our club, to protect each individual from any problems (lawsuits, etc) that might occur for whatever reason. Most clubs form as partnerships since the potential risk of liability is very small. Unless a ...
This is part of a continuing series on entering Spin Offs and Mergers in bivio and NCA. Ford Motor Company [F] spun off Visteon [VC] as of 6/28/00. Shareholder were to receive .130933 Visteon shares for each Ford share held. The tax basis for the ...
A frequent question is about the need to file a partnership return, Form 1065. Rip, you are always recommending that investment clubs file a partnership return. Isn't there an exception that says an investing partnership can elect not to do this. If so, wouldn't the ...
This question is often asked Our club just started in November. We have not bought any stocks yet. Do we still have to file a partnership income tax return. It depends on whether you mean 'have to' or 'should'. The instructions for the federal partnership ...
Jamie wrote My club is formed as a general partnership. Our members, however, do not invest the same amounts every month, so there are some wide gaps in ownership percentages. I have recently read that in a general partnership, taxes will be divided equally among ...
Recently Tim K. Kessler asked Our club's by-laws allow the transfer of securities to a withdrawing member. However, most of our members do not have brokerage accounts and invest in the stock market only through our club. How does a club handle a withdrawal for ...