Handling Late Payments
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We do not charge a late fee. If the money is not in timely, no units purchased that month. Most club members just make it up the next month although the majority of our members are on autopayments now. We do have in our bylaws to address if the member has not paid for 3 months. We have had enough turnover that 2 members are over 20% ownership so they are not contributing monthly dues because we have that limit in the bylaws. From: "Gloria Graham" <ggraham803@gmail.com> To: "club cafe" <club_cafe@bivio.com> Sent: Monday, May 5, 2014 4:53:28 PM Subject: Re: [club_cafe] Handling Late Payments Our club Sable Currency used to charge a$10 late fee then we decided to stop. The economy hit a couple of our members pretty hard. So we need to amend our bylaws as well. On May 5, 2014 11:54 AM, "Laurie Frederiksen" <laurie@bivio.biz> wrote:
We do not change a late fee, but we do not allow members to miss months either. The reasoning is that some will want to try and "time the payments" hope to take advantage of market swings. We also have hardship provisions and ability to terminate if the deliquences continue. From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Pam Kirk We do not charge a late fee. If the money is not in timely, no units purchased that month. Most club members just make it up the next month although the majority of our members are on autopayments now. We do have in our bylaws to address if the member has not paid for 3 months. We have had enough turnover that 2 members are over 20% ownership so they are not contributing monthly dues because we have that limit in the bylaws. From: "Gloria Graham" <ggraham803@gmail.com> Our club Sable Currency used to charge a$10 late fee then we decided to stop. The economy hit a couple of our members pretty hard. So we need to amend our bylaws as well. On May 5, 2014 11:54 AM, "Laurie Frederiksen" <laurie@bivio.biz> wrote:
There are no tax implications for the club if they don't charge a withdrawal fee. The tax implications come from whether you transfer stock or cash to them. John Rice ABODI Investment Club From: JAYNE GILBERT <jaynegrd@sbcglobal.net> To: "club_cafe@bivio.com" <club_cafe@bivio.com> Sent: Monday, May 5, 2014 4:39 PM Subject: Re: [club_cafe] Handling Late Payments What are the tax implications for the club if they don't charge a withdrawal fee? From: Bob Mann <sailrmann@maestroanalyzer.com> To: club_cafe@bivio.com Sent: Monday, May 5, 2014 6:09 PM Subject: Re: [club_cafe] Handling Late Payments
It's not OUR money, it's THEIR money. If they don't pay on time then they didn't buy shares this month. If the payment comes in late it buys shares next month.
We originally had the late payment fee in place and only had one or two people who we had to use it on in our first 8 years. I finally heard an argument from someone online about how ridiculous it is to charge people for not making an investment, especially when it doesn't hurt anyone when they are late or don't pay at all; we no longer have a late fee. We did away with withdrawal fees for the same reason. It's only a little extra work to make a withdrawal so we only charge actual expenses incurred, which is a postage stamp to mail their K1 at year-end!
We have also gone to electronic funds transfers for monthly investments so that the money is in the club account the day of the meeting. Now we can place our buy/sell orders the very next day, no longer having to wait for checks to be deposited and clear.
Bob Mann
Lunch Money Investment Club
And why do you care if someone is trying to time the market?
The money on hand is what the club has available to invest. Does it matter whether it's $380 or $750 this month? What if I have unexpected expenses this month so only invest $25 and get a raise and invest $75 next month?
It's THEIR money, not OUR money. How much an individual invests each month should be up to the individual; that they are actively participating in the club is the important part, in my mind.
Bob Mann
Lunch Money Investment Club
On May 5, 2014 at 9:00 PM James Dickerson <polymerguy@yahoo.com> wrote:
My club uses the end-of-prior-month valuation for our meeting discussions since it can be validated directly against our monthly brokerage statements. After much discussion, when applying payments we use the valuation on the Saturday that we meet (even though payments are generally applied the following Monday) since that reflects current market value. What date do other clubs use for valuing monthly payments? What date is used when late payments are applied? Mike Jones Wall$treet Wannabees Hi Mike, Several years ago we gave this presentation on Valuation dates:https://www.bivio.com/club_cafe/files/Presentations/investment-club-valuation-dates.pdf 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 Wed, May 7, 2014 at 11:04 AM, Mike Jones <> wrote:
Awesome! Thanks so much. Interesting stuff. On Wed, May 7, 2014 at 10:15 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:
Bob, absolutely agree that active participation in the most important element. And we agree - it's their money. So why do I care about timing? Two reasons: The club is where the wisdom of crowds should rule. If we collectively agree not to enter the market, then so be it. If you want to have the flexibility of an individual investor to invest what you want independently - that's different from the club. Second, we use this as a forum to teach people to invest and the dues are modest. The dues level shouldn't present a hardship that one would need to manage around month-to-month. Again, that's our philosophy and may not fit with your club. Jimmy James P. Dickerson | Technology Manager Office 423.229.1935 | Cell 423.367.9693 | PerennialWood.comSent from my iPhone
Laurie, What brokerage firms does Bivio have relationships with. We need to have our Blooming Asset information directly sent to a brokerage. Our accounts newer balance. Thanks. Sent from my iPhone
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