National Association of Investment Clubs: Low-Income Investing

The National Association of Investment Clubs, which is officially known as the National Association of Investment Corporations (NAIC), provides information for individuals who want to form investment clubs. Investment clubs provide a way for all types of individuals to learn about investing and investments and the way the equity and debt markets work. Forming investment clubs gives many individuals, particularly those with low incomes, a chance to build wealth and understand the lessons of investing and saving.

NAIC’s Purpose

NAIC is a member-driven organization whose mission it is to educate investors on the benefits and advantages of investing through investment clubs. An investment club, which is similar to a mutual fund (although minus some of the legal requirements provided under federal securities laws), is easy to establish. Investment clubs are particularly popular with low-income investors who may not have sufficient capital to invest on their own.

Benefits to Low-Income Investors

A low-income investor can use the membership benefit access software for investment accounting purposes, learn best practices for starting an investment club and access templates and other documents for such programs as dividend reinvestment, or DRIP. Using the power of an organization such as NAIC empowers low-income investors to seek financial freedom and pass the lessons of investing to their children and subsequent generations.

blog comments powered by Disqus
Scottrade