club_cafe: Valuation Dates and Trying to Keep Everyone Equal
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club_cafe: Valuation Dates and Trying to Keep Everyone Equal Laurie, I agree with you completely. When I was treasurer of my first club starting 15 years ago, the club wanted everyone to stay equal. I would get the payments, sometimes late, and would deposit them in our bank account, but date them on the books as of the meeting date of the month they were intended. It became very confusing and was very, very hard to keep straight. I finally started just depositing the checks, marking them on the books the date I got them, and let the accounting program take care of the calculations. Relieves so much stress on the treasurer and the books are more accurate. Why should a person that makes payments late get the same treatment as the person that makes payments on the due date. If a person makes the payment late, it is recorded on the books…if the market has gone up, that person buys less units; if the market has gone down, that person buys more units. But in overall picture, it all evens out accurately and you have a much happier treasurer!! Henri Russell
No virus found in this message. Dear Henri, Thank you for sharing your experience. I can totally relate. I was able to let go of the idea of equal when one of our members was going to miss a meeting because she had just had a baby. I actually thought briefly that that meant I would have to go to the hospital and get her club contribution. :) Fortunately, we all realized very quickly how ridiculous that was. We let go of the idea that everyone had to be equal and in the many years since, we've never even paid attention to who owns what percentage of the club. We are there to learn to invest with a group of friends by actually making real investments. If it ever got to the point where the amount of money invested in the club changed our group priorities and dynamics I'd hope we took some of it out so we could keep our focus on practicing what we were learning. I can learn as much as I'd like, just by putting in the time to learn a little more each month. That is not dependent upon how much I have invested compared to my other friends. -- 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 Laurie, What a profound statement. If this is not the truth for anyone in an investment club, they should get out immediately!! Our creed is “Education, social fun, and hopefully to make a little money along the way.” Henri
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