|In This Issue:
eMoneyShow Presentations Available Through Oct. 7
The Dividends and Income eMoneyShow wrapped up this week, offering 30 live presentations from ICLUBcentral president Doug Gerlach and other experts Sept. 17-19, with opportunities to check out 60 virtual exhibits as well as download software, tools, white papers, annual reports and videos. But it's not too late to check out the sessions. If you missed the live sessions, on you can catch up with events through the on-demand link, available through Oct. 7.
ICLUBcentral's own investing guru discussed "Dividend Analysis for the Growth Stock Investor," detailing how you can get the most out of the growth stock approach. You can learn about about concepts such as yield and the payout ratio and the risks of chasing dividends in your stock portfolio. Click here for more information about the Dividends and Income eMoneyShow and keep an eye on our calendar for more live investing-education events.
Learn and Explore: Toolkit 6 Webinar Oct. 7
Toolkit 6 is a powerful investing tool — are you getting the most out of it? Join ICLUBcentral's Doug Gerlach for an interactive session on Toolkit 6. Bring questions, tips and tricks to share with other investors. The next webinar is slated for Oct. 7 at 9 p.m. EDT. Please Click here to register and check on past webinars you may have missed.
When a Club Member Exits: Weighing Payout Options
In the StockCentral forum, Don M. poses a question about what happens when an investment club member wishes to fully withdraw from the club. In Don's club, members are wondering about the various payout options. "We understand it could be in the club's interest to pay him out in stock, but what is the advantage to taking stock (instead of having the club pay him in cash) for him? Is the cost basis of the holdings the value at the time of his withdrawal, or is it the same as the club's cost basis for that holding?"
ICLUBcentral board member Jim Thomas replies: "In an investment club organized as a partnership, when a partner fully withdraws and is paid in cash, that partner will have a realized a capital gain (or loss) due to their withdrawal. That capital gain/loss is shown on their Withdrawal Report (but not on their final K-1). The amount of capital gain/loss will be the difference between the market value of their club units and their tax basis in the club. This capital gain/loss must be reported on their personal tax return for the year of withdrawal.
"The benefit to a fully withdrawing partner of getting paid with transferred stock instead of cash is that the withdrawing partner does not realize any capital gain/loss due to their withdrawal. (In this situation, the stock transfer is not a taxable event.) Capital gain/loss is deferred until they eventually sell the transferred stock. The withdrawn partner's tax basis in the transferred stock will be their tax basis in the club (less any cash paid as part of the withdrawal)." So why should a fully withdrawing partner who prefers cash be willing to accept payment in stock instead? Read more on this question in the StockCentral Forums.
BetterInvesting National Convention Kicks Off: Free Day on Saturday
The 62nd annual BetterInvesting National Convention is under way this week at the Sheraton Station Hotel in Pittsburgh. The event runs through this Sunday, bringing individual investors together with the pros. Ron Muhlenkamp, founder and president of Muhlenkamp & Co., and author of "Ron's Road to Wealth: Insights for the Curious Investor," will present a keynote address detailing investment opportunities in the natural gas market. Elisse Walter, recently retired commissioner of the Securities and Exchange Commission, will hold an informal discussion.
Members of the public are invited to attend free events on Saturday, Sept. 21. Besides seeing Muhlenkamp's and Walter's presentations, attendees have the opportunity to meet with representatives of prominent companies such as General Mills, Caremark, Kraft, Procter & Gamble and Aflac. And Doug Gerlach will discuss "Principles of BetterInvesting in the Stock Market" at 4 p.m.
Don't miss this event next year! We'll soon have information about the 63rd annual BetterInvesting National Convention in 2014.
Click here to register for the free day on Saturday.
September 20, 2013
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Webinars led by Doug Gerlach:
First Tuesday of each Month: Toolkit 6 User Group
Second Monday of each Month: Lunchtime Learning
Third Tuesday of each Month:
New Investment Club Orientation
Doug Gerlach will also be speaking at the following events:
September 20-22, 2013 – BetterInvesting National Convention, Pittsburgh, PA
November 1-2, 2013 – BetterInvesting Puget Sound Investors Education Conference
November 15-17, 2013 – AAII National Convention, Orlando, FL
Submit Your Event!
Like 7-Eleven, we're not always doing business, but we're always open — go to the ICLUB Store and outfit yourself with the simple, yet powerful tools and services that smart investors have been using to grow their portfolios since 1989.
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Support is here to help. You can reach them M-F, 9:30 AM-6:00 PM at 877-33-ICLUB (877-334-2582), or use the e-mail web form at ICLUB Support.