Monthly or yearly lump sum dues
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Monthly or yearly lump sum dues What is the ramification of someone paying a lump sum for the year vs. the monthly dues style? For example - paying $600 in January and making the $50 a month payment on valuation date per month. Where would this lump sum be put kept? Bob L. Our bylaws specify that payments buy units as of the valuation date effective for the meeting at which a check was received. For example, we would invest the entire $600 at the valuation date used for the January meeting. The member would get no benefit from dollar cost averaging over the year.. Treasurers, with nothing else to do, could put the entire $600 in a suspense account and then apply $50 per month to buy units. This transfers the work from the lump-sum payer who doesn't have to write 12 checks to the Treasurer who needs to generate 12 accounting entries instead. As a Treasurer I would rather the member demonstrate the discipline, I guess. Mike Jones Wall$treet Wannabees Bloomington, MN From: Robert Leppanen <leppanen_bob@sbcglobal.net> To: club_cafe@bivio.com Sent: Friday, November 20, 2015 12:05 PM Subject: [club_cafe] Monthly or yearly lump sum dues What is the ramification of someone paying a lump sum for the year vs. the monthly dues style? For example - paying $600 in January and making the $50 a month payment on valuation date per month. Where would this lump sum be put kept? Bob L. I agree totally. Treasure's already have enough to be responsible for
without taking on this additional burden.
Dick Lewis
Gentlemen's Mutual Investment Club (GMIC)
Cary N.C.
From: Mike Jones via bivio.com
Sent: Friday, November 20, 2015 1:56 PM
Subject: Re: [club_cafe] Monthly or yearly lump sum
dues Our bylaws specify that payments buy units
as of the valuation date effective for the meeting at which a check was
received. For example, we would invest the entire $600 at the valuation
date used for the January meeting. The member would get no benefit from
dollar cost averaging over the year..
Treasurers, with nothing else to do, could
put the entire $600 in a suspense account and then apply $50 per month to buy
units. This transfers the work from the lump-sum payer who doesn't have to
write 12 checks to the Treasurer who needs to generate 12 accounting entries
instead. As a Treasurer I would rather the member demonstrate the
discipline, I guess.
Mike
Jones
Wall$treet Wannabees
Bloomington, MN From: Robert Leppanen <leppanen_bob@sbcglobal.net> To: club_cafe@bivio.com Sent: Friday, November 20, 2015 12:05 PM Subject: [club_cafe] Monthly or yearly lump sum dues What is the ramification of someone paying a lump sum for the year vs. the monthly dues style? For example - paying $600 in January and making the $50 a month payment on valuation date per month. Where would this lump sum be put kept? Bob L. The solution to partners not wanting to write a check every month for our club is to have each member enroll in autopay offered by our brokerage firm. The broker drafts the monthly amount from the checking account of each member before the monthly meeting. Autosync posts the payments to bivio, and all the treasurer needs to do is one multiple member payment transaction each month as all the payments are received by the broker on the same day. This system works well as our members travel extensively, and the club is dark for two months in the summer. Jack Ranby, Treasurer Grants Partners Investment Club |
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