Blonde Investment Group

[TightEnd]

I was joking.Investment consultant=me

charges are typically 2% for a share purchase including stamp duty and commission

[phatomch]

 

[Rooky9]

I think the intial stake would have to be bigger than the monthly 20/25 quid - but if the take up in terms of numbers is high 50 would probably be enough?

My thoughts on tighty's questions for potential members comments...



- how will you meet? make decisions? how often?
An actually in person meeting could be just an annual thing? If there was a site set up then decisions could be made by polls. If each member puts the same in then 1 member can equal 1 vote and we can have a rule for support for investments to be made 60/40 or simple majority etc


- how will you invest? set up an account with a broker? bank?

  I have absolutely no knowledge of how this works. I guess it would be with someone who provides an easy online system for the administrators - also obviously one that charges the least!

- how often if at all will you pay out?

With this market it must be looking at 18 months until that would be an issue but I would thing perhaps annually, being the point where people could also leave?


- who will admin the account?
probably need a couple of people on board to make sure the work load doesn't become a problem. the servig term could be staggered to spread the workload and make sure there is good knowledge transfer between terms of the admins.


- uk shares only?
Would this depend on the broker etc chosen?


- what timeframes for investment?

Looking like minimum 2 years with the current situation?


- any no-nos? eg particular companies or sectors?

No ethics or morals, just a balanced portfolio of risk

[boldie]

My idea would be maybe we all put in £50 (or double monthly contribution) on month one, that way we can keep half back in case anything we deem as a bargain comes up at short notice that way we have the money available to not have to wait for people to pay up.

Anyone thats serious about this should sign up for a 1 year minimum, and we have a set value of how much we put in (one person cant put £100 pm and everyone else £25 it will make the admin side of it a major headache.

This is the big one for me, poker players are notoriously unrealiable we would have to make sure that everybody understand that they have to contribute every month or they are out immediatly. They would only getting back what they put in if the fund is in profit or only getting their share if there is a loss...call it a penalty clause, people should not be able to use the fund to push up their bankroll or pokerplaying habit and then later get back in again.

I can see there being 2 tiers;

One is the 25£ a month and the other a £50 a month, this should be fairly straightforward to maintain. You should not be able to jump between tiers as the admin side would be hell.

Pay-out of profits is a tricky one, I am more than happy to let my money in for years to come at the moment as I can afford to do so (at the moment). But I reckon after each full year people should be able to withdraw the full amount , unless the majority says that they would prefer that everybody gets their profit paid out at the end of the year and people have the choice to quit the fund at that stage. I reckon those are the only two ways to keep the admin side manageable.

I would suggest we'd discuss the shares to start off with and then pick 2 or 3..every 3 months or so we could then decide wether we would stick with those shares, add some new shares with the new money that has come in, or sell those shares and move everything on to new shares. The new shares could also be decided at that stage. People can put their case forward as to why they suggest taking a certain course of action or why they like a certain share and would suggest investing in it and we could all just vote on it (Via a poll ).

just a few quick thoughts.

[byronkincaid]

there is stuff that you can or cannot do legaly, need a chairman and a treasurer etc IIRC from reading an articlre about it years ago.

this is the bible I think

http://www.proshareclubs.co.uk/cgi-bin/proshareclubs/startingaclub/pagewiz.cgi?pg=/club_manual.htm

[phatomch]

my thoughts exactly boldie what we dont want is people saying ok then quiting 3 months down the line. I want this to be a done in the spirit of Blonde where its a friendly thing and we dont want the argument of having to say to someone sorry the money you've put in for 3 months is gone.

If you put down if you may be interested ill put your name down on the list and we will see how many we have.

[totalise]

if your gonna invest like this, I'd suggest doing it through a market-maker, they generally operate commission/fee free, and they even let you trade on margin, so you can get even more leverage for your money.

Obviously with something like this, you dont actually own a % of any companies you invest in, you are basically generating profit/loss based on the movement in the share price, but the lack of fees and the margin in my opinion makes it a much better idea.

edited to add: I dont have any idea about the legality of doing it as part of an investment group etc and charges involved so the above might be a load of bs.

[ACE2M]

i'm in

[Colchester Kev]

Having had a look at whats involved and the timescales that are needed to commit ... im out.

i hope you can get something going though.

Good luck with it.

[phatomch]

No worries Kev

[gatso]

could someone give me a real idiots guide to how tax would work on this please. I'm clueless in such matters

[TightEnd]

any gains are not taxable up to a capital gains tax threshold £8,500 I think. Would be doing extremely well to get there on £50 a month!!


above that you declare gains on a tax return and pay tax at your marginal rate

[mondatoo]

I'm in (for £25 a month).Only thing that i'm really bothered about is how we set it up i don't think everything we do should  be available for anyone to read on a public forum,obvioulsy we should keep updating on here but a password protected forum should be the way forward imo.

PS When we make loadsa money we can buy into blonde and get that bloke from colchester sacked  

[Colchester Kev]

I'm in (for £25 a month).Only thing that i'm really bothered about is how we set it up i don't think everything we do should  be available for anyone to read on a public forum,obvioulsy we should keep updating on here but a password protected forum should be the way forward imo.

PS When we make loadsa money we can buy into blonde and get that bloke from colchester sacked  

You dont need to buy into blonde to try that .... and you wouldnt be the first

[phatomch]

I'm in (for £25 a month).Only thing that i'm really bothered about is how we set it up i don't think everything we do should  be available for anyone to read on a public forum,obvioulsy we should keep updating on here but a password protected forum should be the way forward imo.

PS When we make loadsa money we can buy into blonde and get that bloke from colchester sacked  

Yeah we would have to have our own password protected site that we could do everything through.