There are many people who want to start investing money, but have no idea where to begin. Putting money in a 401k or Roth IRA is a great place to start. However, if you’re looking for a more personal, hands-on place to put your money, an investment group is a great place to start.
What to Expect
According to local-investing.com, “Local investing groups are grassroots, volunteer-run, and driven by a common inspiration to put money to work for the mutual benefit of investors, the local businesses and nonprofits they invest in, and the community as a whole. To support this mission, groups organize community outreach events and form collaborative relationships with a wide variety of players in their local communities, including people in business, finance, economic development, nonprofits, government, media, higher education, and more.” These types of groups are a great way to become a more active part of your community. There are also investment groups that trade primarily in stocks that you can also consider joining.
How to Find One
There are many different resources you can use in order to find an investment group you like. Reach out to people in your community in order to find a local one. Betterinvesting.org is a website you can access that will help you learn of any investing clubs in your neck of the woods. If your area doesn’t have one, consider starting your own. There are also numerous options you can take advantage of online as well. Websites such as Bivio, The Motley Fool, and Meetup.com offer a chance to invest for those who don’t have time to start their own club or attend meetings.
Keep in Mind
While investment groups can be fun and rewarding, there are a couple things you must keep in mind. It is essential for you to find a group with diverse levels of investing experience. There is no shame in gathering tips and advice from those more advanced. Additionally, you want to make sure you’re not being bossed around about how to spend your money. It’s important to come together within your group to create a strategy that is singular and focused. Finally, become comfortable with seeing your investments through. Dummies.com states, “Many investment clubs consider themselves to be long-term investors, or shareholders who hang onto a stock for at least a year and usually much longer. But an investment club wouldn’t be much fun if the members never actually bought or sold anything. That means there’s somewhat of an incentive to be constantly buying or selling investments.” It is not your responsibility to keep things interesting within your group. Be smart with your money and stick to your plan.
Do extensive research to find a group of people you trust and want to work with. Make sure you feel like you can confidently express your opinion and watch your investments pay off.