Good morning everyone,
I am in talks with a few people in my Local fire department union to start an investment club for our local. Too many firefighters that I talk with are not investing an appropriate amount of money for retirement and are relying too much on our pension when they are done working. Our pension is in stable condition and our department continues to grow (I’m in one of the largest and busiest departments on the east coast) however 2008 did a number on our accounts. I think the learning and education benefits of an investment club would benefit everyone involved. The club would not require a sum of money large enough to retire on, however the hope is that if people join they would learn enough to start investing correctly on their own as well.
I am a firm believer in passive index investing, the entirety of my 457 and IRA are in vanguard indexes. However, I do have a small and growing dividend growth taxable account. The bulk of the club’s investments will be in an S&P 500 fund but there will be small individual stock additions for voting members from my Local as well as a non-voting index fund open to any IAFF firefighter throughout the country. I think the benefits of members learning how to read financial reports, stock valuations, etc would be highly beneficial, as well as giving me a platform to teach the wonders of passive investing and compounding returns.
We already have a Chief who is a CPA on board to handle taxes, as the club will operate a taxable account. I was wondering if there was anyone out there who has experience setting up an investment club. I have already read a couple books on the matter and am continuing to educate myself on the process but if anyone could offer any guidance it would be greatly appreciated!