withdrawal fee
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withdrawal fee Hello All, I am writing again about our club's withdrawal fee. Our club charges a withdrawal fee which at times can amount to a sum of several hundred dollars. How should this be entered in Bivio accounts so that the withdrawing member's records are correct and the club records show the profit? Hi, The withdrawal fee is one of the pieces of information you include on the withdrawal form. When you accept the entry, bivio makes all the accounting entries you need to record things properly.Here are the instructions for entering a withdrawal: https://www.bivio.com/site-help/bp/Member_Withdrawal_Help 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 Mon, Aug 25, 2014 at 2:50 PM, <mmoriarty@crocker.com> wrote:
The amount of the withdrawal fee is entered on bivio’s withdrawal form. The rest is automatic. The amount to be paid to the outgoing partner will be reduced by such withdrawal fee. Each of the remaining partner’s value will be increased in proportion to those partners’ ownership interest. Having said that, I would urge you to rethink your practice on withdrawal fees. Many years ago, when commissions were much higher, it was fairly standard to charge a 3% withdrawal fee. Now, with commissions much lower, many clubs are finding if fairer to charge smaller or no withdrawal fees. This is especially true since, often, the best way to fund a withdrawal is to transfer shares to the outgoing partner, a practice which results in no withdrawal fees. Rip West How can a club justify a withdrawal fee that "can amount to a sum of several hundred dollars"? It's the partner's own money and, except for actual costs encountered in effecting the withdrawal, s/he should get it back. This type of fee rewards the 'last man standing' who will reap the fees of all who departed before him/her. That opinion aside, Bivio has a place to specify the fee on the withdrawal form. Mike Jones Wall$treet Wannabees Bloomington, MN From: Laurie Frederiksen <laurie@bivio.biz> To: The Club Cafe <club_cafe@bivio.com> Sent: Monday, August 25, 2014 2:15 PM Subject: Re: [club_cafe] withdrawal fee Hi, The withdrawal fee is one of the pieces of information you include on the withdrawal form. When you accept the entry, bivio makes all the accounting entries you need to record things properly.Here are the instructions for entering a withdrawal: https://www.bivio.com/site-help/bp/Member_Withdrawal_Help 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 Mon, Aug 25, 2014 at 2:50 PM, <mmoriarty@crocker.com> wrote:
I agree with Mike. We do have a withdraw fee, although we should call it a penalty to discourage someone from joining and then leaving early. A withdraw disrupts the club by having to give up a stock that we like. If someone leaves within the first year it is a 10% charge and it goes down by 2% each year. So if you are in the club for 5+ years then there is no fee except for what the broker might charge. We have only had 3 people withdraw within 2-3 years of being in the club and they were charged $0, $47 & $80. John Rice ABODI Investment Club On Tuesday, August 26, 2014 8:05 AM, Mike Jones via bivio.com <user*21595500001@bivio.com> wrote: How can a club justify a withdrawal fee that "can amount to a sum of several hundred dollars"? It's the partner's own money and, except for actual costs encountered in effecting the withdrawal, s/he should get it back. This type of fee rewards the 'last man standing' who will reap the fees of all who departed before him/her. That opinion aside, Bivio has a place to specify the fee on the
withdrawal form. Mike Jones Wall$treet Wannabees Bloomington, MN From: Laurie Frederiksen <laurie@bivio.biz> To: The Club Cafe <club_cafe@bivio.com> Sent: Monday, August 25, 2014 2:15 PM Subject: Re: [club_cafe] withdrawal fee Hi, The withdrawal fee is one of the pieces of information you include on the withdrawal form. When you accept the entry, bivio makes all the accounting entries you need to record things properly.Here are the instructions for entering a withdrawal: https://www.bivio.com/site-help/bp/Member_Withdrawal_Help 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 Mon, Aug 25, 2014 at 2:50 PM, <mmoriarty@crocker.com> wrote:
We charge a flat $100; almost an arbitrary number. In CA, one must file a DBA form with the county providing names/addresses of partners and then publish for 2 weeks in a legal newspaper. <<. In CA, one must file a DBA form with the county providing names/addresses of partners and then publish for 2 weeks in a legal newspaper.>> Are you sure about that? An investment club may not be a business. Investing isn't a business as far as IRS is concerned. It might be worth looking into. Rip West My club is in California and we didn't have to file for a DBA. John On Tuesday, August 26, 2014 9:42 AM, Rip West <ripwest@comcast.net> wrote: <<. In CA, one must file a DBA form with the county providing names/addresses of partners and then publish for 2 weeks in a legal newspaper.>> Are you sure about that? An investment club may not be a business. Investing isn't a business as far as IRS is concerned. It might be worth looking into. Rip West My club went through that process when we originally formed and then depreciated the expense over our first 5 years. Now we create an updated list of signatures when necessary and file it with the current Partnership Agreement. We scan it and save the document on Bivio as well so that allcan refer to it and see what we signed. Mike Jones Wall$treet Wannabees Bloomington, MN From: Jay Sternin via bivio.com <user*27500300001@bivio.com> To: club_cafe@bivio.com Sent: Tuesday, August 26, 2014 11:02 AM Subject: [club_cafe] Re: withdrawal fee We charge a flat $100; almost an arbitrary number. In CA, one must file a DBA form with the county providing names/addresses of partners and then publish for 2 weeks in a legal newspaper. |
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