State Employees’ Retirement Fund Market Value Altimeter
May 2005
| Valuation Date |
Market Value (in billions) |
| 3/31/2005 | 9.663 |
| 2/28/2005 | 9.765 |
| 1/31/2005 | 9.646 |
| 12/31/2004 | 9.785 |
| 9/30/2004 | 9.367 |
| 6/30/2004 | 9.511 |
| 3/31/2004 | 9.496 |
| 12/31/2003 | 9.369 |
| 12/31/2002 | 8.537 |
| 12/31/2000 | 10.890 |
| 12/31/1995 | 6.595 |
| 12/31/1990 | 3.935 |
The State Employees retirement Investment portfolio dropped 102 million between February 28 and March 31, 2005, reflecting a new balance of 9.633 billion. Considering a questionable present housing and retail sales market, the fund overall seems to be doing well. Actually, the second quarter of this fiscal year has shown a again of 5.7 points.
Expect the unexpected is a cliché used extensively these past months. Many economists believe that investing should be on a long-term basis with diversified portfolios. Your writer has no quarrel with this rationalization, however, many of us don’t have the benefit of time to wait for more favorable economic conditions. We do concur that diversification of one’s investment and patients are generally keys to enhancing an individual’s income.
It appears that different segments of the stock market are taking turns to out perform one another. The trend could continue. So — as the saying goes “don’t pull all your eggs in one basket.” It is well to remember also that future performances of the stock market are never guaranteed. Can you spell “crisis”?
Observations, Facts and Assumptions
Did you ever hear of a social security trust fund? Yes, there is one. I understand it’s full of IOUs representing U.S. Treasury Bonds. Money in the fund comes from workers’ payroll taxes. The tax ceiling at the present time is $90,000. The program, as written, has been very successful to date. It started in 1935 by President Franklin D. Roosevelt. It was meant to guarantee some reasonable benefits for workers after retirement. A reserve soon grew and has continued to be used as a principal source for general fund expenses. The social security fund pays eligible retirees on a cash basis. Tow-thirds of all seniors rely upon social securities guaranteed benefits as their principal source of income. Listen to this: 4.8 million widows and widowers, 5 million disabled workers and 3.8 million children of deceased workers also depend upon social security. The majority of these individuals never contributed to the fund.
Although the President has maintained that older recipients of social security will never lose their existing benefits, Federal Reserve Chairman, Alan Greenspan, has urged Congress to cut social security benefits to include the annual COLA provision. I thought Mr. Greenspan was our friend. Last January, the COLA was set at 2.7% and, at the same time, prescription drugs, health insurance and medicare premiums were increased. It appears some politicians want to treat social security as a welfare plan instead of a pension plan that has been earned and paid for. Even more startling is the rumble that social security benefits should be paid to illegal immigrants for work they perform illegally. There are reportedly over 10 million illegals in the country at the present time. Have I mentioned lately that retired state employees have not received a raise in their pensions since 1988? And so the story goes.
Did You Know
- The are over 3.2 million items on 27 miles of shelving that reside in the Michigan State Library building, the nation’s second largest.
- For mathematicians — March 14 is known as national pi day (Pi 3.14).
- China experienced an economic growth of 9% last year, compared to about 4% for the U.S.
- In 1867, the U.S. acquired Alaska from Russia (the 49th state).
- The First Lady, Barbara Bush, has access to an airplane, Bright Star, for her own use.
- May 21 is Armed Forces Day and May 30 is Memorial Day — the flags should be flown on both days.
Ponder This
- Optimist: Someone who starts a new diet on Thanksgiving Day.
- I know a couple who apparently eat out a lot. When they call their kids to dinner, they all run to the car.
- Let us never negotiate out of fear, but let us never fear to negotiate. — John F. Kennedy.
- Kids in the back seat cause accidents.
- Accidents in eh back seat cause kids.
Commentary
A study involving 2,257 retired men ages 71 to 93 found that those who walked less than a quarter mile a day were almost twice as likely to develop Alzheimer’s or other forms of dementia as men who walked more than two miles daily.
Editor’s note: Al Trierweiter is a former President of the Lansing SERA Chapter, former Chairman of the Michigan SERA Coordinating Council, former Legislative Representative for both the Lansing Chapter and the SERA Council. AI may be reached at 6440 Old River Trail, Lansing 48917; phone 321-0041.
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