Are there any clubs that uses BuyandHold as their Brokers
and has a money market account setup with BuyandHold? We
have an account called BuyandHold and a Share account which
is setup at a local bank. All of our transactions are done
out of the Share account. We are considering doing away
with the Money Market but when we sell a stock Buyandhold
will put the funds in the Money Market Account.

When Clubs sells where does BuyandHold put the proceeds. Do
they mail a check to the club mailing address?

 Wesley,

I don't use BuyandHold.com anymore but when I did, the proceeds of a sale
were "booked" into a Money Market account (cash portion of my investment
account) with interest. As soon as the money was booked, it was available
for investing. If I wanted the cash, they would have to cut a check, which
would take several days to arrive. While they were willing to ACH transfer
money out of our local bank account, they were not willing to ACH it back.
So in essence, there isn't an actual separate account for the cash. It's
simply part of your existing account.

Our club also uses a small local bank for our club checking. There's no
minimum amount required, and there are no bank fees, as long as we do not
exceed 10 items deposited in or written out of the account in a given month.
Since we have 10 members, that works well for us.

I prefer it this way because I can make the club deposit at 9 a.m., instruct
our broker to wire transfer it at 10 a.m., and still make my trades before 3
p.m. We use Firstrade.com. By having your checking account with your
broker, you will have a waiting period--sometimes for days--before your
money deposit is available for investing. Our way is quicker and more
flexible for us.

Lynn Ostrem, Minneapolis
garbagecop@foxinternet.net