Investment clubs can help you manage your money

By Meghan Streit
THE ERICKSON TRIBUNE

Maybe bears and bulls are just two Chicago sports teams, as far as you’re concerned. Or maybe you’ve been following the stock market for years.

In either case, there is always more to learn about managing your money.

With so much information available on the Internet and in the media, and even more people willing to give you their two cents about investing, it can be difficult to decide where to stash your cash.

Should you sock it away in relatively safe government bonds, or put it to work in high-yield stocks—or some combination of the two?

Pool your resources
Financial planning should be a high priority for everyone, but as you get older, smart investing becomes even more important.

One way to get a handle on the basics of investing or pick up some new strategies to add to your arsenal of knowledge is to join an investment club.

“Investment clubs are a good learning tool and a good social environment to have discussions and learn about different investments,” says Mark Smith, a CPA and in vestment advisor based in Bourbonnais.

Groups of friends, coworkers, and neighbors have been forming investment clubs in big cities and small towns for decades. The idea is simple: people with a common interest in learning more about financial management get together to share stock tips and investment strategies. Some clubs also pool money to make communal investments.

Seek advice from experts
One such group at Monarch Landing in Naperville recently formed an investment club of their own. They meet every week to discuss the markets and swap stock advice.

Members’ investment IQs range from novice to expert, but everyone gets something out of the experience.

At several recent meetings, Edward Jones investment advisor Rich Ferrari talked to the club about different investment strategies and shared information about retirement planning.