John Wasik, writing in Forbes about ways to avoid using your 401(k) as a piggybank, suggests as an alternative joining an investment club.
“The social setting makes it fun and somewhat disciplined,” Wasik writes.
“My family had an investment club for years — The Wall Street Prowlers. We never beat the market, but when we needed to liquidate the club for heavy medical expenses, we had the money and didn’t have to dip into our retirement accounts.
“The key to making an investment club work? Invest in dividend-producing companies and reinvest the dividends. Most large companies have dividend reinvestment plans that allow you to reinvest quarterly payouts at no brokerage commission — if you invest in buying new shares.”
Wasik will be speaking at the BetterInvesting National Conference on Saturday, May 17, in Chicago, a day that’s free to the public. Register here to attend.
The day includes Wasik’s 9:30 a.m. presentation on his book, Keynes’s Way to Wealth: Timeless Investment Lessons for Any Generation.
Wasik suggests contacting BetterInvesting to learn how to start an investment club.
“Sorry for the plugs, but BetterInvesting is the best group to know if you want to be in an investment club. I’ve spoken at many of their conferences and they have regional chapters and investment education events all over the U.S.,” Wasik says in his Forbes column.
Can’t argue with that.
BetterInvesting is a national nonprofit organization that has been empowering individual investors since 1951. Founded in Detroit, the association (formerly known as National Association of Investors Corporation) was borne out of the conviction that anyone can become a successful long-term investor by following commonsense investing practices. BetterInvesting has helped more than 5 million people become better, more informed investors by providing webinars, in-person events, easy-to-use online tools for analyzing stocks, a monthly magazine and a community of volunteers and like-minded investors. For more information about BetterInvesting, visit www.betterinvesting.org/openhouse or call toll free (877) 275-6242.