Is it worth it to do an investment club with just 2 people?

Question

We are going to legally be a general partnership...is this a good idea? We're going to have one account.

Answer 1

no

Answer 2

I would create an LLC and make  room for the possiblity of adding new shareholders.  If it is just a club, I dont see the need for any legal registration with the State government.

Answer 3

Share ideas - outstanding.  You'll make better decisions having someone to justify your moves with...

Sharing an account - horrible.  It only leads to trouble.

Answer 4

Hi M.

I still think that you should be careful about entering into such an alliance.

I don't quite know why it is that you feel that this is a beneficial partnership for you both. Can I ask who's idea it was in the first place?

Do you have equal funds? I mean, who stands to gain the most from your arrangement?

You know, there is a third way here. I have spoken about the benefits of pooling resources with a single partner before and in fact, there really is nothing to gain from taking this path. The individual gains can be greater in many (if not most) cases.

Perhaps one of you is more confident than the other, but that wouldn't necessarily prevent you from forming an alliance,or a small support network, without getting into (financial) bed together.

I hope that you make the right decision. I have to say though that you really need to be measured when it comes to investments at the best of times, without adding extra, unnecessary complications into the mix.

I know a good forum that you can join if you want to talk things through with experienced traders. You are welcome to email me for the link.

Best wishes to you Melissa.  Gar.