Member Withdrawl Policies
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Member Withdrawl Policies Our club is interested in what other clubs are doing re withdrawing members; i.e., do clubs assess a fee or penalty for withdrawing? Death, no fee. Voluntary, 5% penalty. South Shore Seniors, Michigan City, IN On Sat, Jan 15, 2011 at 2:29 PM, Rita Roberts <ritaroberts@bivio.com> wrote: Our club is interested in what other clubs are doing re Thanks! Rita
From:
club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Jeanne Tieken
Death, no fee. Voluntary, 5% penalty. South Shore Seniors, Michigan City, IN On Sat, Jan 15, 2011 at 2:29 PM, Rita Roberts <ritaroberts@bivio.com> wrote: Our club is interested in what other clubs are doing re
We have a 6% fee for members who exit the club. This is deducted from their payout. On Sat, Jan 15, 2011 at 3:29 PM, Rita Roberts <ritaroberts@bivio.com> wrote: Our club is interested in what other clubs are doing re My two clubs do not assess a fee. Why should there be a penalty for withdrawing? Isn't the inability to invest in the club and its profits incentive enough? Personally, I would never invest in a product that had a withdrawal penalty. These clubs should be for life and not treated as ATMs. This should be made known to your prospective members. If an emergency withdrawal is needed, there should be no penalty for it. If a member chooses to abuse this policy, then the rest of the members are free to vote out the abusive member. In my history, I've never heard of this happening. I still don't understand the purpose of a penalty fee. Can someone enlighten me? Stu, Mad Loot Investment Club Nationwide Investment Club From: Rita Roberts <ritaroberts@bivio.com> To: club_cafe@bivio.com Sent: Sat, January 15, 2011 3:29:03 PM Subject: club_cafe: Member Withdrawl Policies Our club is interested in what other clubs are doing re withdrawing members; i.e., do clubs assess a fee or penalty for withdrawing? I'm with Stu. Our club has no withdraw fee and I personally wouldn't feel right about it. We've made it clear that if an emergency arises and you need the money you are free to withdraw it. Now, that being said, we do have policies in place that allow existing or remaining members to make decisions regarding the withdraw so as not to negatively impact the other members. I'd be happy to share a copy of our bylaws and partnership agreement if those would be helpful.
Andy Sent from my iPhone
Thanks for the helpful input. Our club is not looking to implement a penalty, rather to reduce or eliminate a long-standing practice. I would appreciate the opportunity to look at your bylaws and partnership agreement, especially with regard to mitigating the negative impact on remaining members. Thanks! On Jan 15, 2011, at 4:50 PM, Andy Butler wrote:
No penalty, just any costs associated with the withdrawal.
Ira Smilovitz Join me at InvestEd 2011 In a message dated 01/15/11 15:29:13 Eastern Standard Time, ritaroberts@bivio.com writes:
Well said, Stu.
Our 711 Club has been in "business" for more than 55 years. We
have apparently never missed a monthly meeting. Seems impossible, but probably
quite true. Admittedly we are member-based on a shared and deeply significant
professional career basis, and our members are all for "life". Our Articles of
Agreement stress three goals: Social, Educational and Growth Investing ( losing
money slowly!! Just kidding). We do encourage/require by vote that every
existing member be part of the selection of new members and we do try to
ensure that the new member understands and enjoys are basis for association
before they join.
Clearly, we have no penalties of any kind.
I agree entirely with Stu's perception, but I also understand
that other clubs may have a different basis for association and may require
different "fees".
Best regards,
Leo. From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Stuart Weissman Sent: Saturday, January 15, 2011 4:00 PM To: The Club Cafe Subject: Re: club_cafe: Member Withdrawl Policies My two clubs do not assess a fee. Why should there be a penalty for
withdrawing? Isn't the inability to invest in the club and its profits
incentive enough? Personally, I would never invest in a product that had a
withdrawal penalty. These clubs should be for life and not treated as
ATMs. This should be made known to your prospective members. If an
emergency withdrawal is needed, there should be no penalty for it. If a
member chooses to abuse this policy, then the rest of the members are free to
vote out the abusive member. In my history, I've never heard of this
happening. I still don't understand the purpose of a penalty fee.
Can someone enlighten me?
Stu, Mad Loot Investment Club Nationwide Investment Club To: Rita: Our club have no fees, though I going to suggest a change. Just finished year-end balancing and allocating of expenses. We did have a member that withdrew in the first half of the year. All expenses were allocated to the remaining members. I think a club should consider recovering the expenses rather than absorbing the expenses. Harriet C. (SF) From: Rita Roberts <ritaroberts@bivio.com> To: club_cafe@bivio.com Sent: Sat, January 15, 2011 12:29:03 PM Subject: club_cafe: Member Withdrawl Policies Our club is interested in what other clubs are doing re withdrawing members; i.e., do clubs assess a fee or penalty for withdrawing? I wouldn't make your proposed change. Remember, it works both ways. If your club had paid for its expense on the day before the member withdrew, s/he would have been allocated a full share even though s/he might not have received any of the benefit. You also have the same situation with income. If you sell a stock after a member withdraws, the remaining members get the full capital gain. (I realize this is not entirely correct as the withdrawn member also picks up his/her share of the gain and the club as a whole actually overpays its capital gain tax with the excess recovered as the remaining members withdraw.)
These are the consequences of being "cash basis" taxpayers. You recognize the tax implications of your actions when money changes hands.
Ira Smilovitz Join me at InvestEd 2011 In a message dated 01/16/11 01:30:47 Eastern Standard Time, skcots@yahoo.com writes:
Morning! I know this question has been asked about 8 million times, but I never paid attention since I did not need to.... We have two members withdrawing from our club, and would like to have a general overview of the options and procedures. I'm betting this is posted somewhere in the Bivio site but I cant find it.... Can anyone give me a hand? Thanks! Ellen Ellen Shershow Pena Photography 415.690.0278 Hi Ellen,
You can read about transferring appreciated stocks to fund the withdrawals
at:
Jim Taylor's document, starting at page 10.
Rip West
Saint Paul, MN |
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