Wow! 50 members? Where is this club? We were in Denver area. . .& we had a difficult time agreeing on our basic buy/sell/hold philosophy with 20,15, 12, & finally even 7. . . Can't imagine the majority of 50 + people agreeing on anything -- with my limited Investment Club experience.

Just curious! 

Your Club's net worth must be quite high. . .and bookkeeping must take forever.  Where do you ALL meet? How many members usually attend each meeting? What is the monthly buy-in? 

Carol in Colorado

Sent from my iPad

On Jun 24, 2014, at 8:57 PM, Linda <wiltse@optonline.net> wrote:

Our club has over 50 members.  There is a cost of paper and ink to print out the several hundred pages for the tax returns plus K-1's.  (600 pgs @ .05 = $30)  You need the copy to mail and an extra copy for the club records.  A PDF is fine if you keep a back-up and your hard drive doesn't decide to die.  Mailing costs for our returns are about $50 for return receipt.  I wish Bivio would handle e-filed returns.  I wanted to prepare the tax return in my tax office to e-file, but with such a large membership and member values and units all different, I found the task too time-consuming.

I did not say to charge the withdrawing member $100.  I said the cost of preparing (printing and mailing) the tax returns could be almost $100, depending on the size of the club.  A withdrawal fee of $5 or $10 is fair.

Linda

From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Laurie Frederiksen
Sent: Tuesday, June 24, 2014 1:00 PM
To: The Club Cafe
Subject: Re: [club_cafe] Withdrawals

Hi Linda,

It is a good point that there may be some expense involved with tax preparation for the withdrawing member.  It does seem though that $100 is a pretty large amount for that to cost.  If it does, I can see why you'd want to include it in a withdrawal fee.

From our perspective, we often see clubs rush into finalizing withdrawals too quickly.  You can't just look at your brokerage account value on some day and then divide it up the next.

You need to make sure you have received any final income that is expected and have anticipated and paid any fees that you might need to pay.   It's important to take these things into account prior to handing out withdrawal checks for a club disbanding.

Laurie Frederiksen
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On Tue, Jun 24, 2014 at 12:24 PM, wiltse <> wrote:

There are costs associated with withdrawals that no one seems to be taking into account.  A tax return needs to be printed and mailed, as well as K1's distributed. The withdrawing partner should share some of those expenses by paying a small withdrawal fee depending on the # of members. The expense can add up to $100 or more for a club.  When a club disbands, there are some states that require a fee to end the partnership.  If the treasurer paid everyone off at full value, who would end up paying these final  expenses?

I would be interested to know how clubs handle the year of dissolution.

Linda

Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone

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