We’ve gotten a lot of questions from interested parties about the investment club we started running some months ago. We could have had an information web page up around now but we’re trying to do most of the work to set the website up to handle databases and simple queries so that we won’t do double the work.
In the mean time, I’m sharing some of the frequently asked questions on here so that any interested person or even members can quickly reference this post when they have some common questions about how this is set up or how all of it works.
So general questions and anwers.
What is The InvestClub?
It’s simply our way of letting people combine their funds via monthly contributions, minimum of $55 (or your local currency equivalent) and my team and I invest it for them. You get pretty solid returns, and for some of you, access to stocks and markets you may not otherwise have. I’ve been investing and working in the space for years and we have a private group where we talked about this and eventually, we talked ourselves into making it public.
When did it start?
This post in April was essentially the public debut. Before that, we had a private group for about 2 years where we talked about investing, discussed companies and learned best ways to invest. Once we decided to go public, we held a meeting that month with all the interested parties, and registered Rumexx Investment Club, LLC here in the US and we kicked off our investments in June 2018.
How Many People Are There?
This number is always going to change and since we want to keep this post sort of timeless, we don’t want to give a number and have to update it constantly. But membership is over 100, and more people are always welcome to join us. The more, the merrier.
When and Where Do You Hold Meetings?
Being that our members are across the world, we hold meetings via conference call. Right now, we use the app Zoom to host the calls and it’s held every last Saturday of the month at 10am US Eastern time (7am pacific, 3 or 4pm West African time). A link is emailed out to members and we also send reminders and updates through our private Telegram channel.
Who Are the People Behind this InvestClub?
The club was founded by myself (my twitter, my LinkedIn), and I’m in charge of the Investments. I’m supported by Uche, who helps with overall investments and is particularly knowledgeable about the Media, Gaming and Entertainment space. Jide takes care of our accounting/treasury and Otas, our administrative assistant. We also have a few others who help in different ways, especially with tech and similar stuff. If you have domain expertise in any business area, especially Life sciences and biomedicals, please reach out to us at rumexxcapital at gmail dot com.
What is the Cost of Membership?
There is a one time fee of $5 for on-boarding a new member, and your monthly investment contribution of at least $55. Aside that, there are no other tees, at least for the foreseeable future. Our goal has always been to keep it free pretty much indefinitely, but we’ve run into the reality that there is a pretty significant cost to build a transparent platform that members can use easily and that will allow us to help as many as need this. So we might need to either spread that cost or monetize the platform somehow. One thing we can guarantee is that this will never be driven by the need to make money. It’ll always be about serving people well. The cost just has to be taken care of.
How Do I Join?
For now, simply send an email to rumexxcapital at gmail dot com indicating your interest. Someone will walk you through the steps to onboard, send you terms and agreements and basically bring you in. We are currently working on a web and mobile platform that will handle joining and participating in the club. Watch this space.
How Do I Send My Contributions?
For most parts of the world, PayPal. We also have payment links for those in Nigeria to pay with their bank accounts or debit cards, and even subscription plans so the amount is automatically debited. You need to be a member to get more information on this.
What Happens If I Miss A Payment?
If you miss one payment, it’s fine. Life happens. You do still have to make that up in the coming months. However, if you miss three monthly contributions in a row, we consider that a withdrawal from the Club and we will send back all prior contributions and returns, net of taxes and fees back to you.
When and Where Are the Investments Made?
We make monthly contributions to make things easy and streamlined, but investments are not necessarily made every month. Sometimes we will hold capital in reserve because we only want to invest in opportunities we believe strongly in, we are excited about and that we believe will do well for a long time. If we don’t find anything we like and we don’t want to keep waiting, we could buy into a broad market index fund or ETF.
What Should We Expect from Our Participation and Investments?
In the first place, we expect members to understand that the goal of this club, and indeed any good stock investing plan, is long term participation in the stock market. Expect to make a consistent habit of investing for five years or more without spending down your investments. The time horizon for successful investment should be decades long, and too many people think the stock market will deliver millions overnight. Nope.
It’s been proven that getting in and out of the market especially during downturns or stock market declines is the reason most investments do not produce results. So our first goal is to encourage and mildly enforce consistent investment habit for the really long term.
The second is that we cannot guarantee the returns you’ll make. We discuss our portfolio holdings openly and we will pick the investments we believe represent great future opportunity but at any point in time, the portfolio could decline or increase. That’s how the stock market works. However, it’s also proven that over the long term, the stock market returns roughly 8-12% annually and we hope to deliver a higher return than that over time.
This is absolutely not a get rich quick scheme. This is an invest well, build up your portfolio and have money that is growing for you scheme. We promise to invest your money the same way we invest ours (our money is in the club too), backed by careful analysis designed to preserve and protect your capital while growing it. We believe we will do well but we are not promising anyone that we will make them rich.
How Do I Track What My Money Is Doing?
For now, just shoot us an email and Jide or Otas will happily give you your balance, returns and a break down of your contributions. We believe in being thorough. Once we have our platform ready, members will easily track their investments and how it’s doing over time without needing anyone to tell them.
What Happens If I Can’t Attend A Meeting?
Well, Nothing. We encourage members to call in, as it’s always great to talk to you all and update you as well as share ideas on how the investments are doing. But if you cannot make it, you can email us for the minutes or listen to the recordings on SoundCloud. You just won’t get to participate in the live questions and answers or discussion, but otherwise, you’re fine. However, try to make the meetings or at least listen to the recordings though because that’s the way we disseminate info and it’s easier if you’re carried along from the get go.
Can I Suggest Stocks?
Absolutely! You can do that during meetings or just shoot us an email and we’ll be happy to look at the stock in question, although it’s not guaranteed that we will invest in it. But if your suggestions are well researched and you make a good case for it, odds are high we will accept it. We love hearing from our members and so far many of them have sent us great ideas!
If you have any more specific questions about the club, send an email to rumexxcapital at gmail dot com and someone will answer.
If you’re interested in investments generally, comment here or hit me up on twitter. We have some great things coming out soon, so follow this blog, follow our twitter account and let us know how we can be of help.