Should I Open My Investment Club Under an Individual Account or Joint Account?

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When opening an investment club under a joint account, remember that a large amount of accounting will need to be done to organize the varying percentages of different owners. Get tips on organizing an investment account individually with help from a portfolio manager in this free video on money management and personal finances.

Part of the Video Series: Investing & Money Management
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Video Transcript

Are you part of an investment club and are about to establish an account at a bank or a stock brokerage firm? Hi this is Roger Groh at Groh Asset Management and today we're here to talk about how you do that. Well at many firms they actually have forms for investment clubs, specifically for clubs. If they don't, you open it up just as any other account where the name is the name ABC Investment Club or whatever it might be and then underneath that, you list the people within the club that the club has empowered to make the decisions to buy or sell or withdraw money or any of the other technical options. You'll have to provide the backup legal data to the bank or brokerage firm in order to verify that. Last, from an accounting point of view, you're going to have to do that on your own. Yes, there are probably are a number of people in the club that all own a piece of it, the percentages might vary and the accounting you'll have to do, the bank and brokerage firm will give you the overall data usually and then you divide it up according to who owns what. And when they came in to the club. So make your lives easier, you might specify specific dates when people can come in. Maybe the end of each calendar quarter or maybe just annually. It will be easier from an accounting point of view if you have one entrance and one exit period. Hope that helps, I'm Roger Groh with Groh Asset, thank you very much for spending time with me.


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