Withdrawal Fees

Andy Noll on

Curious as to what level of fees clubs charge club members
for withdrawals. Our club has always charged 3% of
redemption but this was before the day of low cost brokerage
fees and we are reviewing it.

Herb Lemcool on

I would set it lower the longer one is in the club and 3% for anyone less than 2 years

On Mon, Aug 20, 2012 at 4:32 PM, Andy Noll <nollfamily4@msn.com> wrote:

Curious as to what level of fees clubs charge club members
for withdrawals. Our club has always charged 3% of
redemption but this was before the day of low cost brokerage
fees and we are reviewing it.

Jim Thomas on

Andy,

I believe the historical motive for a 3% withdrawal fee ... on cash
withdrawals only ... was to recover the commission costs of selling stock to
raise cash. With low commissions these days, I think it makes sense to
limit withdrawal fees to actual costs (if any) for processing the
withdrawal.

I've heard it argued (and tend to agree) that recovering the commission
costs of selling isn't even a good reason to charge a withdrawal fee since
the decision to pay a withdrawal in cash in generally made by the club, not
by the withdrawing member. Why should a withdrawing member be penalized for
the club's decision to pay in cash when the club could have transferred
appreciated stock (generally at no cost).

> Curious as to what level of fees clubs charge club members
> for withdrawals. Our club has always charged 3% of
> redemption but this was before the day of low cost brokerage
> fees and we are reviewing it.

-Jim Thomas

Linda TerHaar on

Our club also has changed to limiting the fee to the actual costs for
processing the withdrawal, if any.

On Mon, Aug 20, 2012 at 4:42 PM, Jim Thomas <jimt075@comcast.net> wrote:
> Andy,
>
> I believe the historical motive for a 3% withdrawal fee ... on cash
> withdrawals only ... was to recover the commission costs of selling stock to
> raise cash. With low commissions these days, I think it makes sense to
> limit withdrawal fees to actual costs (if any) for processing the
> withdrawal.
>
> I've heard it argued (and tend to agree) that recovering the commission
> costs of selling isn't even a good reason to charge a withdrawal fee since
> the decision to pay a withdrawal in cash in generally made by the club, not
> by the withdrawing member. Why should a withdrawing member be penalized for
> the club's decision to pay in cash when the club could have transferred
> appreciated stock (generally at no cost).
>
>
>> Curious as to what level of fees clubs charge club members
>> for withdrawals. Our club has always charged 3% of
>> redemption but this was before the day of low cost brokerage
>> fees and we are reviewing it.
>
>
> -Jim Thomas
>
>

Andy on

We don't have any fees for withdrawals.

Sent from my iPhone

On Aug 20, 2012, at 8:32 PM, Andy Noll <nollfamily4@msn.com> wrote:

> Curious as to what level of fees clubs charge club members
> for withdrawals. Our club has always charged 3% of
> redemption but this was before the day of low cost brokerage
> fees and we are reviewing it.

Chris Kiklas on

We charge 3% or the actual cost of selling enough stocks to cash someone out, whichever is greater. We also build in a cushion of time in which to give the money back.

The cushion we use because we like to make decisions together as a club, so we don't sell anything until there is a full meeting of the club. This also gives us a chance, if the amount is low enough, to collect enough dues so that maybe we don't need to sell anything.

We also believe that anything above the actual cost of the transactions is ok to collect because the club's time is valuable too. By leaving the club, you are making us spend a meeting deciding what to sell instead of learning more about investment strategies or picking the next stock to purchase.

On Mon, Aug 20, 2012 at 9:42 PM, Andy <abutler911@gmail.com> wrote:

We don't have any fees for withdrawals.

Sent from my iPhone

On Aug 20, 2012, at 8:32 PM, Andy Noll <nollfamily4@msn.com> wrote:

> Curious as to what level of fees clubs charge club members
> for withdrawals. Our club has always charged 3% of
> redemption but this was before the day of low cost brokerage
> fees and we are reviewing it.

Leo Cardillo on

We do not charge a redemption fee, although there is a provision for such a fee.

Our trade commission is about $8.00 with Fidelity and we can typically cover a withdrawal with one or two trades.

Our club is more than 55 years old and our members generally stay in the club for many, many years. Barring unusual circumstances, we do not find it necessary or appropriate to charge for a withdrawal.

Best regards,

Leo

From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Chris Kiklas
Sent: Tuesday, August 21, 2012 8:11 AM
To: club_cafe@bivio.com
Subject: Re: [club_cafe] Withdrawal Fees

We charge 3% or the actual cost of selling enough stocks to cash someone out, whichever is greater. �We also build in a cushion of time in which to give the money back.

The cushion we use because we like to make decisions together as a club, so we don't sell anything until there is a full meeting of the club. �This also gives us a chance, if the amount is low enough, to collect enough dues so that maybe we don't need to sell anything.

We also believe that anything above the actual cost of the transactions is ok to collect because the club's time is valuable too. �By leaving the club, you are making us spend a meeting deciding what to sell instead of learning more about investment strategies or picking the next stock to purchase.

On Mon, Aug 20, 2012 at 9:42 PM, Andy <abutler911@gmail.com> wrote:

We don't have any fees for withdrawals.

Sent from my iPhone

On Aug 20, 2012, at 8:32 PM, Andy Noll <nollfamily4@msn.com> wrote:

> Curious as to what level of fees clubs charge club members
> for withdrawals. �Our club has always charged 3% of
> redemption but this was before the day of low cost brokerage
> fees and we are reviewing it.

Jenny-Sue on

Our club charges a minimum fee of $5. We only charge more if our actual
costs are more.

-----Original Message-----
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Linda
TerHaar
Sent: Monday, August 20, 2012 4:10 PM
To: club_cafe@bivio.com
Subject: Re: [club_cafe] Withdrawal Fees

Our club also has changed to limiting the fee to the actual costs for
processing the withdrawal, if any.

On Mon, Aug 20, 2012 at 4:42 PM, Jim Thomas <jimt075@comcast.net> wrote:
> Andy,
>
> I believe the historical motive for a 3% withdrawal fee ... on cash
> withdrawals only ... was to recover the commission costs of selling
> stock to raise cash. With low commissions these days, I think it
> makes sense to limit withdrawal fees to actual costs (if any) for
> processing the withdrawal.
>
> I've heard it argued (and tend to agree) that recovering the
> commission costs of selling isn't even a good reason to charge a
> withdrawal fee since the decision to pay a withdrawal in cash in
> generally made by the club, not by the withdrawing member. Why should
> a withdrawing member be penalized for the club's decision to pay in
> cash when the club could have transferred appreciated stock (generally at
no cost).
>
>
>> Curious as to what level of fees clubs charge club members for
>> withdrawals. Our club has always charged 3% of redemption but this
>> was before the day of low cost brokerage fees and we are reviewing
>> it.
>
>
> -Jim Thomas
>
>

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