Association Investment Tips

So if your Association has some extra money to invest—how should the Board going about doing it properly?

- Do not invest in high-risk, potential high-return investments. The Association may be opened up to liability if something goes awry.

- Keep in mind your governing documents may dictate your investments. Although this is generally a good rule to follow anyways, some associations must invest in only accounts that are FDIC-insured.

- Draft a written investment policy and resolution. This will prevent any ambiguity among future board members and protect the Association.

If the Association chooses to hire a financial advisor, do not use the financial advisors of any board members or if a board member is a financial advisor, do not use that board member as the Association’s financial advisor.

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