State Employees’ Retirement Fund Market Value Altimeter

November 2004

Valuation
Date
Market Value
(in billions)
9/30/2004 9.367
8/31/2004 9.322
7/31/2004 9.316
6/30/2004 9.511
5/31/2004 9.373
4/30/2004 9.371
3/21/2004 9.496
2/29/2004 9.520
1/31/2004 9.420
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 market value of the State of Michigan Retirement Fund Portfolio increased 45 million between August 31 and September 30, 2004 showing a total of 9.367 billion. The increase appears a modest figure but considering the volatility of the stock market and this being a presidential voting year the figure looks good.

The United States Economic Condition as of September 16, 2004 showed leading indicators as steady and consumer and business confidence remaining high. Risks continue to remain, however, as energy prices continue to escalate, interest rates are rising while stock markets are somewhat flat.

Observations, Facts and Assumptions

Moral values and economic justice are just a few of the sayings we have been listening to the past nine months from new and old aspirants to public office. Today is November 3rd the day after the big presidential election. It appears to me neither President Bush nor Senator Kerry won or lost in the recent knock-down campaign. In the meantime, the rest of us now can second guess the results.

We are told that beginning January 1, 2005 social security recipients will be getting an average of $25 more in their monthly checks thanks to a 2.7% annual cost of living increase. However, nearly half of that $25 dollar increase will be eaten up by a $11.60 increase in monthly Medicare Part B premiums. Two million low-income social security recipients, including some of our SERA members, will see no real gain because their higher benefits payments will be completely erased by the Medicare premium increase.

There has been much said recently in regard to the stealing of a person’s identity,particularly from the older and more susceptible person. Not only should you keep your personal information private from strangers but authorities indicate that 100/0 of victims had personal information stolen by friends and 11% by relatives. Here are some tips that may help to avoid becoming a victim: shred private records or statements before throwing them away; use cash when ever possible; collect your mail as soon as possible or lock your mail box; check your credit report at least once a year; resist giving your Social Security number to anyone execpt those with a legitimate need for it, such as motor vehicle departments, tax agencies, or certain financial institutions.

A gentleman by the name of Ted Henna created the 401(K) twenty years ago by turning a tax loop hole into a lucrative tax break for workers. First, the money you invest in a 401 (K) reduces your taxable income which gives you some immediate savings. Then it compounds, tax free, which increases your investment returns. Some employers also match the portion of the worker’s contribution. (One hitch-you pay taxes on all withdrawals. There wasn’t such a program when I retired back in January of 1982. Story of my life.

Did You Know
  1. It was 1871 that Mrs. O’Leary’s cow allegedly kicked over the lantern in her barn which is said to have caused the great fire of Chicago. The blaze leveled 3.5 square miles, destroyed 17,450 buildings, left 98,500 residents homeless and killed about 250 people.
  2. B. Rocket planes real soon will take passengers 662.21 miles up out of our atmosphere, for pleasure.
Ponder This
  1. Middle age is when you are sitting at home on Saturday night and the telephone rings and you hope it isn’t for you. (Ogden Nash)
  2. Those who get too big for their britches will be exposed in the end.
  3. She was engaged to a boy friend with a wooden leg but broke it off.
Commentary

If you are a person who likes obtaining bits of knowledge be sure to read the latest copy of Corrections (October 2004) published by the Office of Retirement Service, Chris DeRose, Director.

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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