Over The Coffeecups
Warren Mitchell - EditorPANCAKE BREAKFAST IS
MARCH 15
TODAY'S PROGRAM
Vince Cox will introduce Ken
Upchurch, III, President and CEO of the W. K. Upchurch
Construction Co., Inc. W. K. Upchurch is a lifelong
resident of Montgomery. He is a third generation CEO of
a construction company that specializes in commercial and high
end custom residential construction throughout the Southeast.
Ken is the immediate President of the Montgomery Education
Foundation, a public/private community partnership focused on
improving achievements in the Montgomery Public School System.
He also serves on the Montgomery YMCA Metro Board, the A+
Education Foundation Board, the Montgomery Planning Commission
and many other boards. He teaches 9th grade Sunday
School at the First United Methodist Church. Ken and his
wife, Carol, have two daughters, Coleman, age 17 and Luch, age
12.
LAST WEEK'S PROGRAM
Mike Winstead, filling in for
President Mark Wilkinson, introduced John Burch and
Al McLellan who spoke to us, giving us some insights to
financial planning. As financial planners with Lincoln
Financial Advisors, they are both qualified to talk about long
term financial planning. John gave out an Annual Return
sheet for key indices from 1983-2002. They ranked in
order of performance. John had a client ask a question
we might ask, "We are at the bottom of a down market. If
the market goes up, what might be the next sector that would
lead market recovery?" John showed on the chart how to
put things in their proper context. While the Dow Jones
Industrial Average measures only 30 companies, it is generally
reflective of the entire market. Though there has been
much volatility over the years, the general trend has been up,
from 80 in 1933 to about 8,000 today. The last three
years, though deemed pretty horrible by investors can be seen
as only a "blip" in the context of the market over the long
haul. John explained briefly what the "Morningstar
Investment Style Box" was and how, ideally, we would have
investments in each of the boxes, with some large company
investments, some small company investments and a mix also of
"value" and "growth" investments. "Growth", for example,
would be investing in companies that paid few dividends and
put profits back into R&D, new equipment and new plants.
"Value" investing is like your wife buys groceries... buy good
companies, but at the lowest possible price. The second
chart he had showed that over the last 20 years illustrated,
each year's performance was led by a different market index,
reflecting much diversity of investment styles as explained in
the "Morningstar Style Box". For the recovery years
after the last 4-5 bear markets, the leading index for
performance varied enough that it was clear that no one
investment style would assure your portfolio optimum
profitability. The best solution seemed to be continued
pursuit of diversification with your investing. Try to
base your investments on long-term historical performance and
stay well-diversified.
John & Al passed out a "Million-dollar bill"
to each one attending to remind us that "we can all be
millionaires if we do the right things with our money."
Al McLellan then passed out a sheet showing
the increase in the cost of sending children and grandchildren
to college. Most of us know that education is important
to our children and funding is the key. He told us a
joke about Bubba in college. The estimated cost for a
student at the University of Alabama in 2020 would be $110,335
for four years. If you invested a lump sum of $30,000
today at 8% or an initial investment of "$0" today and a
monthly investment of $264 at 8%, it would grow to $110,335 in
18 years. There are several programs for investing in
college. The Section 529 Education Plan has come out in
the tax code. All states have come out with new rules to
let individuals control their own 529 savings programs.
The beneficiary is a child, grandchild or anyone you choose
and anyone can donate to the fund. When money is
withdrawn from the account for qualified higher education
purposes, it is tax free. Donors can invest in stocks,
bonds and mutual funds with the grow in the account being
tax-deferred. You can contribute up to $11,000 this year
without gift tax consequences ($22,000 for a married couple).
The 529 Plan can become a very good estate planning tool to
effectively take money out of the estate and save estate
taxes. You can change the beneficiary if Susie doesn't
want to go to college. The fund is very flexible and can
be rolled over. The participant can pull the money out
for a non-education purpose, but taxes would then be taken out
for the withdrawal, plus a 10% penalty. A self-directed
529 Plan is quite different from the State Pre-Paid Tuition
Plan, though it falls under the same tax code. Al said
that the cost of college education is increasing at 5-6% per
year.
THOUGHT FOR THE DAY
Mike Winstead said that the thought
was on the Club's web site at
www.gmmkiwanis.com and
is called, "Through the Eyes of A Child".
LAST WEEK'S GUESTS
Patrick Sikes was with us again, but
this time he has submitted an application for membership.
ENTERTAINMENT
Al McLellan and John Burch sang a
song for us.
BIRTHDAYS
George Worley has a birthday this
month. Pete Summer's birthday was last Thursday.
Ken Carrick's wife also has a birthday this month.
ANNIVERSARIES
Al McLellan received a 9-year perfect
attendance pin.
ANNOUNCEMENTS
Chris Lafferty was promoted to the
rank of Colonel (full bird) last Thursday.
Congratulations to Chris. It was also her birthday!
What a day!
El Kidd announced the Mid-Winter
Conference is March 7th & 8th at Embassy Suites Hotel here in
Montgomery. Registration cost is $45.00; deadline is February
20th.
Barnie Paulson said he received a
thank you note for the V.A. Christmas gifts. He asked
members to bring in articles for the rummage sale; no clothes.
Ken Carrick announced members will
read at Dalraida School today.
Dick Bennett said members will read
at St. Jude's on February 20th. He needs volunteers.
El Kidd reminded members to sell ads
for the place mats for the Pancake Breakfast.
PEANUT SALES
El Kidd has one 20lb bag left to
sell. He said there is still some money to be collected.
Profits as of Feb. 6th = $2,867.70. The leading
salespersons are as folows:
El Kidd . . . . . . . . .$2,000.50
Malcolm Bush. . . . . 550.00
Ken Carrick. . . . . . . . 505.70
Pete Summer. . . . . . . 315.00
George Worley. . . . . .238.00
George Wilson. . . . . .220.00
Jim Jones . . . . . . . . .210.00
Jerry Evelan . . . . . . .157.50
Barnie Paulson . . . . .157.00
George Oetting . . . . .150.00
Charlie Eckerly . . . . .135.00
David Morris . . . . . . 120.00
Jean Ash . . . . . . . . . 105.00
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