In your experience, what is a good size for an investment

In your experience, what is a good size for an investment...

iras1 on

The 99 member limit is an SEC issue, not an IRS issue.

Ira Smilovitz

In a message dated 1/14/2012 5:28:22 P.M. Eastern Standard Time, dabay3@sbcglobal.net writes:

We've been in existence since March 1988. We currently have
36 members and we have had as many as 50 something. As long
as we have good software for the financials, members aren't
a problem. I think as long as you stay 99 members and under
you don't have an IRS issue. Our philosophy is more
members, more money to invest. As with any organization
about 20% of the members do the work, but if they want us to
invest their money, no problem. Our minimum requirement for
dues is $25 per month, and there is no maximum limit.

R. M. Shoppell on

Ira,
Thanks for your reply. Our club was under the impression
that when the club membership reached more than 20 members
the SEC requires that the club register as a mutal fund. I,
as a member of the club, did not deem that to be correct but
was advised that the requirement is a new rule by the SEC.
I have been in other clubs where the membership exceeded 20
and it was not a problem.
R. M. Shoppell, Merrill Ranch Investment Club, Florence, AZ.

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