New member AJ Johnson and President Suzy greeted us on a beautiful summer’s day. Bob Gulcher led the Invocation, Eileen Hupp the Pledge, and yours truly the Patriotic Song. Steve Day introduced his guest Al Kanuaka and visiting Rotarian Justin Meadows from Melbourne, Australia. During the meet and greet after the welcome song (led a cappella by Norton Donner) I quietly ribbed Justin about the likelihood that England appears about to retain the Ashes for the third consecutive time (a little cricket news for you all there, in case you might have missed it).
Notices from Suzy included strong encouragement to volunteer for this year’s Concours D’Elegance on the weekend of September 14 and 15, a sentiment that was immediately and enthusiastically echoed by Greg Sparkman. The event is our major fundraiser for the year, last year netting $10,000 to help fund the club’s community efforts. Contact Julia Parton for volunteering on the gates or Greg for helping with the Road Rally.
Suzy reported that two spots remain open on the Rotary Foundation Board. See Suzy or Allan Colman if you are interested.
Great news from the Palos Verdes Peninsula Chamber of Commerce. The Hill’s two Rotary clubs (us and the Sunset club) have been named as Outstanding Service Programs of 2013. We will be recognized as such at the Citizen of the Year dinner on Friday, October 11, at Terranea (6:00 p.m. auction and reception; 7:00 p.m. dinner).
The raffle was won by Christine Barnicki . . . twice! She tossed her second winning ticket back, which allowed Norton Donner to win a bottle of “Deadbolt’ red wine.
Suzy introduced the day’s speaker, Ray Kay, account executive with Searchlight Financial Advisors and host of Smart Money Fundamentals on KFWB 980. Mr. Kay summarized the economic pendulum swings of the past 80 years: the stock market rose from 34 to 1000 points between 1933 and 1964, “bulling all financial obstacles out of the way” during a time that the country went from dirt roads and outhouses to putting a man on the Moon. However, many people missed out on the benefits of the boom in stock prices. Many of that generation were overly wary of investing having lived through the crash of 1929 and the Great Depression. Between 1964 and 1982, the market rose from 1000 to . . . 1001 points! The bear market was simultaneously “in hibernation” and mauling us as rallies fizzled, inflation was high, we suffered two worldwide oil events. Interest rates rose to 21.75%, before the bull returned between 1982 and 2000 and rocketed the stock market from 1001 to 12000.
The current cycle from 2000 to 2013 has seen the stock market fall and now rise to 15000, but Mr. Kay does not believe we are yet out of the woods, the main culprits being an aging population (“a drag on consumption”) and significant over-indebtedness. “It will take time and pain to get out, but it will eventually happen, and our two saviors will be . . . “Fracking” and “Inheritance.” Some forecasters believe we may be energy independent within 2 years and could be able to become a net exporter of oil and gas within 4 years! And with $15 to $20 trillion lined up to change hands in the next 15 years, “Our kids and grandkids cannot wait to spend, spend, spend!” In short, Mr. Kay believes, it’s been a long time since we’ve had it so good, with inflation effectively at zero, and both interest rates and tax rates at historic lows.
What changes should we consider as investors? “Look at Indexed Annuities.” Mr. Kay showed us a graph indicating that those who have invested in IA’s have outpaced the market in recent years. “If an IA goes down you stay flat. If it goes up, you’re ahead.” My lunch partner, who had been rolling his eyes ever since the first mention of Indexed Annuities, stood up at this point and excused himself, quietly whispering to me, “If I stick around I’m going to cause trouble.”
I took from this that not everyone would agree with Mr. Kay that IA’s are the answer.
Keith Deisenroth, Greg Sparkman and Greg O'Brien (dubbed "The Three Amigos" even thought they cannot stand oneanother) are Club Service co-chairs this year. They are discussing the possibility of a club excursion to MEXICO and the BAHAMAS, probably by bus and submarine. Such a trip will be in the nature of the very popular annual "Mystery Tour" sponsored by the San Pedro Rotary Club where it excursions to several unusual locations, such as museums, walking tours of organic farms, manufacturing plants, missions, unique private homes, etc. Their day begins with a continental breakfast and concludes with a late lunch or dinner (usually multi-ethnic). The participants are kept in the dark as to the destinations. The price is fixed per person.
The Three Amigos have kicked around a list of other destinations that need not be secret. Some could be relatively pricey, some more modest. Before we investigate more details, including pricing, we wanted to get the CLub's input. Please look at the below list of possibilities, and get back to the honorable Amigo Numero Uno Greg O'Brien. Let him know which excursions (if any) might be of interest to you and your guest at the right price. If you like the idea of a "myster tour," please let him know. Also, if you have any other ideas, please do not hesitate to share them. Gracias!
The Vino Train (Round trip from L.A. Union Station includes lunch on board and a walking tour of downtown Santa Barbara wine tasting room. Price $145/person)
La Rotacion: Vol. 13 Issue 3 (Aug 2, 2013)Contains several photos without any caption. Provide a caption for each of the photos and you will be entered to win $15.00 in Raffel Tickets. The best quote will also win $15.00!
A great big thank you to Greg and Carolyn O'Brien, Carolyn and Tony Lehr, and Don and Donna Duperon for so graciously opening their homes for our progressive dinner this past weekend - what a great event!Our club looks forward to a report in the next issue of La Rotacion detailing the menue, a description of the venues, and some fun stories of the events of the evening. Thank you in advance to Greg and Carolyn O'Brien, Carolyn and Tony Lehr, and Don and Donna Duperon for offering to provide the details. We look forward to the full story!
Club Information
Palos Verdes' Premier Service Club
Service Before Self
3301 Via Campesina
Palos Verdes Estates,
CA 90274 United States
“Look at Indexed Annuities.” Mr. Kay showed us a graph indicating that those who have invested in IA’s have outpaced the market in recent years. “If an IA goes down you stay flat. If it goes up, you’re ahead.” My lunch partner, who had been rolling his eyes ever since the first mention of Indexed Annuities, stood up at this point and excused himself, quietly whispering to me, “If I stick around I’m going to cause trouble.”
