ALUW Spring Quarter Meeting, May 25, 2000

The meeting was called to order by Anne Zald, President, at 3:25.  A business meeting preceded the program, Can You Retire as a Millionaire?  Keeping Your Own Books:  Managing Your Investment Dollars

BUSINESS MEETING

Rob Estes, Treasurer, reported that ALUW has about $800 in checking and about $4200 in savings.  We are ending the year in the black.  Rob expressed thanks to everyone who sent in dues and contributed to the Legislative Fund.

Linda Pitts, Secretary, reported that the minutes from the Winter Quarter 2000 meeting have been posted, along with the booklist from Nancy Pearl's program.  The minutes from the May Executive Board meeting have also been posted.  The following Faculty Council reports were received and posted: University Libraries, Spring 2000 report from Helene Williams; Instructional Quality, Spring 2000 report from Pam Zilius; and Academic Standards, 1999-2000 report from Judith Henchy.

Judith noted that her report includes information on distance learning issues.  The Faculty Council on Instructional Quality is now setting up a new committee on distance learning.   She urged the membership to take an interest in the work of this council.

Anne will send e-mail to the people who are being nominated for open Faculty Council appointments.  The Faculty Councils will confirm the nominations.

Andy Johnson reported for the Legislative Affairs Committee.  The budget situation will be very serious next year.  Many expenses formerly funded by the motor vehicle excise tax now must be funded via the general fund.  The state will be operating on less money, with more pressure and competition for the available funds.  The Committee strongly believes that the services of the ALUW lobbyist will be essential during the next legislative session.   The collective bargaining bill will also likely come up again in that session.  The Legislative Committee will hold a brown bag lunch or other informational session on this bill later in the year.

Anne reported that she is working on the ALUW Annual Report and will send it out on e-mail at a later date.

Corey Murata reported for the Elections Committee.  The elections results for the ALUW executive board for 2000-2001 are:  Junior Trustee/Senior Trustee, Randy Hertzler; Secretary, Tricia Hart; Vice President/President-Elect, Kathryn Womble.  Venta Silins becomes Senior Trustee/Treasurer, and Christina Byrne now takes over as President.  Anne was given some gifts by the Board in appreciation for her term as president.
 

PROGRAM:  Can You Retire as a Millionaire?  Keeping Your Own Books:  Managing Your Investment Dollars

The speakers were Valerie Quinn from the UW Benefits Office, Mal Moran with TIAA/CREF, and our own Dottie Smith to talk about investment clubs.

Valerie Quinn began with a presentation on the financial programs available through the UW Benefits Office.  These include the Hometown Home Loan Program, the University of Washington Retirement Plan, and the Voluntary Investment Program.

The Hometown Home Loan Program is a lending program available to UW employees through Continental Savings Bank.  It offers flexible loan terms and reduced fees and costs for inspections, appraisals, etc.

Ms. Quinn compared retirement to a three-legged stool: basic retirement, Social Security, and personal investments and savings.  The University of Washington Retirement Plan (UWRP) is open to librarians and academic and professional staff working at least 50%.  Employee contributions are matched by the University.  The fund sponsors for this plan are Fidelity Investments, SAFECO Mutual Funds, TIAA/CREF, and the Vanguard Group.  Employees may mix and match from their choice of conservative, aggressive, or moderate funds.  The UWRP is portable.

The Voluntary Investment Program (VIP) is an additional investment opportunity for UW employees.  In this case, all contributions are made by the employee.  VIP fund sponsors are the Calvert Group, Fidelity Investments, TIAA/CREF, and the Vanguard Group.

Mal Moran from TIAA/CREF spoke next.  He passed out asset allocation questionnaires focusing on risk assessment.  People can send the completed questionnaire in to TIAA/CREF, and they will return a pie chart with recommendations for where to invest.

Mr. Moran noted that the safer the fund, the lower the return on investment.  For high return, one must undertake high risk.  He recommended always having some money invested in stocks as a hedge against inflation.  Of the four asset classes—stocks, 30-day T-bills, government bonds, and corporate bonds—the stock market has the highest growth.  He noted that money market funds can be risky.

TIAA now has a very good Web site.  If they have a PIN number, employees can check their accounts or re-allocate funds online.  Call (800) 842-2776 to obtain a pin number.  Reading materials can be ordered via the site, which also includes contact information and announcements of upcoming meetings and counseling sessions scheduled for local areas.

Dottie Smith then spoke on investment clubs.  She has been investing since college, and she's just learned it “by the seat of her pants.”

There are many different types of investment clubs—high school, church, ethnic groups, neighborhood.  The main purpose of the clubs is education.  The club she belongs to has 14 members; everyone follows one stock.  Jobs such as treasurer and secretary rotate among the members.

When they buy a stock, they do research such as looking at information on Value Line and other sources before deciding what to buy.  Their general strategy is to buy and hold; they do not buy mutual funds.  The club will sometimes have speakers on various issues.

The club Dottie belongs to is a partnership for tax purposes.  When a member leaves, they get an equal share of the accumulated investments.  (Be aware, however, that not all clubs are set up this way.)  If necessary, the club will sell some stocks in order to buy out the person who is leaving.

Submitted by Linda Pitts, ALUW Secretary