NEWSLETTER of the Senior Men’S Club of Grosse Pointe FESTIVITIES
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NEWSLETTER of the Senior Men’s Club of Grosse Pointe FESTIVITIES . FUN . FELLOWSHIP VOLUME LIII, NO. 5 www.gpsmc.homestead.com February 2014 President’s Message hobbies and interests that, YOUNG AT HEART How many of you to me, were fascinating wished for a “toy” to be among your Christmas and would most likely be gifts? To my great pleasure, I received such a of general interest to our gift. It was a wireless speaker that I could use membership. Would some in conjunction with my I-pad and the app, Pan- of you wish to share with dora. Now, in a small portable setup, I can lis- us your “toy” your hobby ten to my favorite artists, songs and composers or, possibly, special in- while having coffee or reading a good book. I terests for publication can conveniently re-live the past while experi- in the SMC Newsletter? encing the future. It occurred to me that many Please e-mail your re- of you may very well have received a toy port to SMC Newsletter Ed Rowady from “Santa” --a Lionel train engine, a remote Editor, John S. Snyder, controlled airplane, a sailboat model build- (jsnyder45@comcast. ing kit, or a new addition to your antique gun net ). To stay young at “Senior Men’s collection. Recently, while talking to a few of heart , maybe we could Kid’s Club ” our Club members, I discovered that they had entitle these articles . Program Chairman - Charles Rutherford February 11, 2014 Inside . Barry L King, Oakland CountyAttorney Investment Seminars 2 Video: "Decades of Deceit Bowling News and Get Well 4 February 25, 2014 Chorus and Attendance 5 Memorials 6 Gary G Abud, Jr, GP Schools Golf News 6 Teacher of the Year 2013 Ken VanDellen's Trip 7 Bridge 9 SMC Florida Luncheon 10 March 11, 2014 New Members 10 The Readers 11 Charles W Davis Jr. Birthdays 12 Education at Henry Ford's One Room Raffle 13 Schoolhouse at Greenfield Village Calendar 13 March 25, 2014 Continued The Speaker is to be determined A Investment Speaker: SMC's Own Mike Smith, Mott Foundation, Retired American companies are 40-50% international. 80% of Coca-Cola’s profits came from outside the US. Emerging markets, i.e. BRIC’S, Brazil, Rus- When hearing of an unavoidable cancellation sia, India, China. Many questions arise. Are Chi- by a speaker several days before a scheduled meet- nese banks overextended? Brazil is dangerous to ing, Mike said, “I’ll fill that opening”, and that he visit, Indonesia is largest Muslim city in the world. did! He has addressed our Investment Seminar prior There are many interesting Indonesian to retirement as Chief Financial Officer of the Mott companies. Many are resource based. Will develop Foundation. customers within US. Share of domestic product Major cycles in the economy occur infre- will shift. Vietnam offers solid opportunities. The quently, driven by fear and greed as common de- bigger government is the slower economic growth. nominators. Cycles have occurred with the railroads The economy is recovering slowly. Revenues are going boom or bust. In 1920 Wall Street experi- increasing to 18% while government spending is enced a large margin drop. Most recently real estate 22%. experienced mortgages titled NINJA’s: no income, The US has a permanent underclass. Blue- no job, no assets – approved! collar jobs have gone overseas. Car companies are People ignore signs. When the bust bot- paying $10.00 an hour. A two-tier wage structure tomed out after 2009 confidence gradually was has autoworkers being paid half of what was once restored. paid. The workforce, impacted by retirement, re- Education is important. Training and re- places from immigration, necessary for growth. training can slow overseas gains. Focus Hope, Taxes are up, why is market up? Implicit Father Cunningham and Eleanor Josaitis along with inflation. Assets are inflated by growth in money schools like WCCM improved and created competi- supply. Obama won’t recognize as inflation. tive work force. Drafting in done by computer now. Major company earnings are up outside of In the G.M. bankruptcy, bondholders came out best. the USA. Productivity is up, requiring less workers Buy a book on inflation. Put money in (plants are all machines). Market is going up despite inflation protected issues. Study money supply and our stagnant market due to world economy. inflation. Baby boomers are drawing down as- How do you invest? Diversify and rebalance. sets in retirement. Review asset classes i.e. equity participation, fixed People still want to move to US and work. income. We need skilled people – gradually all the spectrum How do you decide? Formula – start with of the country is coming to America. 100, subtract age; i.e. 100-80=20%; 100-20=80%. Politically the two sides won’t work out The switch involves moving from equities to fixed problems. We can solve problems at state level, investments over time. When rebalancing, decide leaders can bring sides together and work out com- asset allocation you are comfortable with. promises. The genius of America. People on Mott perpetuated a high 80% in equities. The welfare not doing anything. Agriculture jobs done more assets you have you are probably more risk by immigrants. tolerant. Mike’s presentation was impressive and ap- Many investors move to higher risk tolerance preciated by all in attendance. Thank you Mike! in order to support family. Why does the market go up at this time? Globalization. Domestic markets are out performed. February 2014 A Investment Speaker: Robin Ferriby, Community Foundation of SE Michigan The Community Foundation of Southeast Michigan has just experienced two very good years. Next year will be it’s 30th anniversary. Cleveland Foundation was the first such orga- To reduce taxes use charitable re- nization in the country, and it is celebrating mainder trust. Will increase net return. its 100th anniversary. There are 750 commu- The Michigan Attorney General’s nity foundations in the country. office is evaluating fees to those serving on In a complex transition with the Detroit non-profit Board of Directors to determine Medical Center, assets of affiliate foundations if their income is reasonable. composed of 500 individual funds became Return investment goal for part of the C.F.S.E. Michigan. C.F.S.E.M. is 8 ½% - 9 ½%. They are num- The foundation’s focus is on donor in- ber one in the country for returns. tent, i.e. Chrysler giving to C.F.S.E.M specifi- Strategy is 40% equity, 40% alterna- cally intended for Hamtramck needs. tive investments. There are 190 non-profits A total of 190 funds are dedicated en- in the endowment fund. dowments. The Grosse Pointe War Memorial The foundation’s endowment – asset is one of them. allocation target is as follows: Five hundred donor advisements retain • 22% domestic equity the right to direct uses of the grants. • 16% international equity An IRA rollover must go directly to • 22% fixed income public charity, not a private charity. • 30% absolute return and real asset The last two times IRA rules expired strategies donors had three weeks to complete transac- • 5% opportunistic tions. A new bill pending in Congress would • 5% cash extend an IRA rollover. If passed, it would aid individuals 70 ½ and over. Non-profits are 5.6% of Gross Do- mestic Product. One of 10 employees is in the non-profit sector. Eighty-five percent of donations come from individuals. Charitable contributions came into play in 1920 when Congress recognized non-prof- its as part of the economy. Individuals with income over $250,000 will pay 3.8% on net investment income which funds the health care account. February 2014 A Salvatore (Sam) Ciaramitaro (313-882-9279) Get Well he Senior Men's Club extends good wishes for the recovery of all members who are confined by Tillness. We miss you! Please advise Sam Ciaramitaro, at (313) 882-9279 or Bill Kamm at (313) 884-5542 if you have additions or changes. Cards are sent to confined members as we become aware of their illnesses. Many request that their names not be published in this space. Bowling NewS After 44 games of bowling, the 1st Half Win- Averages range from 193 to 116 with several ner was determined when the team of George guys over 90 and many more over 80. Hathaway, Oscar Kanan, Russ Leone and Roger Le Clerc bested the team of Ray De- The high game so far is 257 by Mike Fried, Meulemeester, Al La Turno, Mike Bellovich 2nd high of 247 by Jim Mayer and Bob Vo- and Glenn Peters.by winning game three of gler. The high series is 699 by Mike Fried, the series. The Champs were 93 pins over 2nd high of 639 by Jim Mayer and 3rd high by average for their series while the 2nd place Jim Swad. finishers were 56 pins over average for their series but had won the first game 825 to 810 The Team high game is 943 by Bill Kuzel, and the second game 894 to 852. Bob Waters, Gene Stover and Mike Fried. 2nd Team high game is 939 by Ray DeMeule- The Champions came on strong to win the meester, Al LaTurno, Mike Bellovich and 3rd and final game 831 to 737. Glenn Peters. 3rd Team high game is 933 by Ray Dresden, Phil D'Agostino, Frank Nucci The men bowl at Harbor Lanes on Jefferson and Del Harkenrider. Team High series is just north of 10 Mile Road on Thursdays 2732 by Bill Kuzel, Bob Waters, Gene Stover starting at 12 noon. Subs are always needed and Mike Fried.