My club is considering disbanding. Has anyone gone through
this process? My thought is to transfer stocks as much as
possible, and sell just enough to provide cash to balance
the various holdings. Who would get what stock might be an
issue.I know 2005 taxes will need to be computed and K1s
created for each member. Would the process be to hold some
money in a bank account to cover final expenses in early
2006? How could the withdrawal process be completed if there
is still a little money in a bank account? The process seems
pretty overwhelming, even with only 6 members.

Nancy J. Davis wrote:
> My club is considering disbanding. Has anyone gone through
> this process? My thought is to transfer stocks as much as
> possible, and sell just enough to provide cash to balance
> the various holdings. Who would get what stock might be an
> issue.I know 2005 taxes will need to be computed and K1s
> created for each member. Would the process be to hold some
> money in a bank account to cover final expenses in early
> 2006? How could the withdrawal process be completed if there
> is still a little money in a bank account? The process seems
> pretty overwhelming, even with only 6 members.
 
Nancy: Our club disbanded in June of 2004. We looked at a stock distribution, but as treasurer I voted against, due to the work involved. We sold all of our holdings, assesed each member a closing fee, than completed the transactions. Make sure to close your bokerage account by year end, so no tax consequences happen in 2006. Maintain your Bivio account for tax year 2005. Half year memberships are available. Filed the tax returns for 2004 as a final tax return. Hope to hear no more from the IRS. We had 15 members so the distribution was some work, but the account did balance to zero in the end.

Stephen R. Denman wrote:
> Nancy J. Davis wrote:
> > My club is considering disbanding. Has anyone gone through
> > this process? My thought is to transfer stocks as much as
> > possible, and sell just enough to provide cash to balance
> > the various holdings. Who would get what stock might be an
> > issue.I know 2005 taxes will need to be computed and K1s
> > created for each member. Would the process be to hold some
> > money in a bank account to cover final expenses in early
> > 2006? How could the withdrawal process be completed if there
> > is still a little money in a bank account? The process seems
> > pretty overwhelming, even with only 6 members.
>
> Nancy: Our club disbanded in June of 2004. We looked at a stock distribution, but as treasurer I voted against, due to the work involved. We sold all of our holdings, assesed each member a closing fee, than completed the transactions. Make sure to close your bokerage account by year end, so no tax consequences happen in 2006. Maintain your Bivio account for tax year 2005. Half year memberships are available. Filed the tax returns for 2004 as a final tax return. Hope to hear no more from the IRS. We had 15 members so the distribution was some work, but the account did balance to zero in the end.


Why did you assess each member a closing fee? Charlie

Hello - Disbanding Members.

Reading between the lines...I can see there is at least one
person (from this disbanding Club) still interested in
investing...based on the fact they want to hold on to the
stock still.

Have you ever thought about joining an on-line club? Or
remote access club..(same thing)?

Allow me to introduce myself - my name is Chris Biegel. I
am the founder of Family and Friends Investment Partnership
or FNF Investments. My club is located in Chicago, IL and
was started in 1996.

Most clubs fail within the first few years (due to lack of
interest or over inflated goals to get rich quick), but with
every failed or disbanded club....one to two former
disbanded club members are still interested in being apart
of an investment club and still very interested in
investing. FNF Investments wants to pick those members
up....either locally or remotely (on-line).

This club model has not been tested, but I am trying and
having been trying to gather these disbanded former members.

So...if any of your members are still interested in belong
to an investment club...please contact me.

http://www.bivio.com/fnfpartnership/files/index.htm?home=1

Chris Biegel
FNF Investments

biegelboy72@aol.com



Charlotte Lindner wrote:
>
> Stephen R. Denman wrote:
> > Nancy J. Davis wrote:
> > > My club is considering disbanding. Has anyone gone through
> > > this process? My thought is to transfer stocks as much as
> > > possible, and sell just enough to provide cash to balance
> > > the various holdings. Who would get what stock might be an
> > > issue.I know 2005 taxes will need to be computed and K1s
> > > created for each member. Would the process be to hold some
> > > money in a bank account to cover final expenses in early
> > > 2006? How could the withdrawal process be completed if there
> > > is still a little money in a bank account? The process seems
> > > pretty overwhelming, even with only 6 members.
> >
> > Nancy: Our club disbanded in June of 2004. We looked at a stock distribution, but as treasurer I voted against, due to the work involved. We sold all of our holdings, assesed each member a closing fee, than completed the transactions. Make sure to close your bokerage account by year end, so no tax consequences happen in 2006. Maintain your Bivio account for tax year 2005. Half year memberships are available. Filed the tax returns for 2004 as a final tax return. Hope to hear no more from the IRS. We had 15 members so the distribution was some work, but the account did balance to zero in the end.
>
>
> Why did you assess each member a closing fee? Charlie