GenXchange Investment Club Frequently Asked Questions
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How much does it cost to be a member of GenXchange Investment Club?
There is a $100 joining fee, a $100 annual fee, and $25 minimum monthly contribution.
Will being a member of GenXchange make me rich?
If your goal is to have quick returns, then GenXchange is NOT for you. Our goal is to double our investments every 5 years and reinvest any dividends that are made. We expect to have a large return in the long run, but, as common sense dictates, we CANNOT PROMISE financial wealth. Stock market gains vary too much for promises.
How many members are in the club, and how long has GenXchange Investment Group been around?
11 members formed GenXchange in November 1999. As of September 2007 the club had 9 members.
Who does GenXchange use as its brokerage firm?
We use the online broker TD Ameritrade.
What is GenXchange’s investment strategy and mission statement?
We are a long-term investment club with semi-aggressive strategies. We do not engage in short-term investments such as “day trading” or “penny stocks”. We use Better Investing as a guide to run the club and invest our money. See our mission statement for more details, or visit www.better-investing.org, The Better Investing website.
What do I have to do to join?
In order to join GenXchange you must complete an application form, attend and participate in 3 of 4 consecutive meetings. Our meetings are held the second Tuesday of every month at 7 PM. You will be asked to present a stock and be interviewed by the club. Current members base decisions regarding whether or not a prospective member is invited to join on a unanimous vote and the submitted forms. Once accepted, a non-refundable joining fee of $100 will be collected. The first month's investment will also be collected. Currently the minimum initial investment is $25, and the maximum is $10-25% of the value of the club. Please not that this is not a public offering of GenX.
What do I have to do to remain a member in good standing?
In order to remain in good standing, members must regularly attend meetings, be on time, stay current with monthly contributions, and complete all research or tasks assigned to him or her during the meeting.
What if I just want to send in my money?
GenXchange does NOT allow members to simply pay dues and not participate in the research of stocks or any other tasks required to maintain the club. For those members who are unable to physically attend meetings, it is their responsibility to submit dues, research, assigned tasks, and proxy (if applicable) or any other pertinent information BEFORE the next scheduled meeting.
What returns have the club posted in the past?
Please view our brochure included in the Welcome Kit or visit genxchange.com.
Is there a limit on the amount of members that can be in the club?
GenXchange limits membership to 25 people.
Will my tax preparation become very complicated?
The GenXchange treasurer will prepare an IRS form 1065 to file the club tax return. Each member will receive an IRS schedule K-1. This information is treated like an IRS form 1099-Div, or capital gain/loss form. Each member is responsible for their portion of taxable income/loss from the club.
Where do we find stocks to study and purchase?
The stock choices that GenXchange decides to research and/or buy come from information received from brokers, financial/investment magazines, newspapers, television programs, or member’s personal opinions.
Does GenXchange deal with mutual funds?
GenXchange’s main focus is on stocks because of the flexibility and control that we have over investment choices.