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Author: NechesInvst Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 7258  
Subject: Re: withdrawals-quit or die?? Date: 9/24/2009 10:42 PM
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JoAnn,

We've been around since 2000, and while most of our withdrawls have been full withdrawls; occassionally someone will ask for just a partial payment.

Frankly, we've never had an issue with the withdrawl process. We try to keep a certain amount of money liquid. We'd like to keep that money for purchases, but sometimes it's used to give a partner cash.

Since the partner asking for the cash is responsible for taxes we don't care how often they want cash. Our biggest problem is, trying to decide which company to sell (all or part of) if the club doesn't have the cash sitting in the bank or brokerage.

But it hasn't been a problem, because our partners realize that everytime they ask for money to come out of the club--they are essentially selling off part of their ownership.

If you feel it could be a problem, you could put in a stipulation that a partner asks for 3 withdrawls in any 12 month period, that partner may be asked to withdraw completely from the club.

Mike
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