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nafex - Re: [NAFEX] Life Time Membership

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  • From: mangodance <bmn@iglou.com>
  • To: North American Fruit Explorers <nafex@lists.ibiblio.org>
  • Subject: Re: [NAFEX] Life Time Membership
  • Date: Fri, 15 Feb 2008 17:08:48 -0500

Jwlehman@aol.com wrote:
In a message dated 2/15/2008 2:06:22 PM Eastern Standard Time, bmn@iglou.com writes:

I know one board member who would write the check this month....oh...and
on the concept of life membrship, you have a vote here. I'm not sure
about the figure...how was it calculated?
_______________________________________________


Because the only way an LTM program will work successfully is if the entire amount is invested and the investment returns pay the membership annually. It must also grow in value as well to cover future membership price increases. Because it is a permanent (long term) investment higher paying mutual funds with higher volatility can be used. We don't care what the value is as long as the proceeds pay the membership fee. There are many that have 10 year annualized averages of 12 and 14%. So $225 invested in one that averages 12% has an average return of $27. Nineteen of this goes to pay the membership fee leaving a safety margin of $8 in the investment for growth. That is how I came up with $225. $200 would work, but with a smaller safety margin.

After many years when some lifers pass on their investment could be transferred to the Research Endowment fund. Indiana Nut Growers LTM has grown by 50% per LTM. Program has been in operation maybe 12 years. Very successful.

I like the concept...and have paid for life memberships over the years for most of my orgaizations. However, I think the estimate of 12% would mean that we're in the risky category investment-wise. I like the option of life memberships. I think they're good for organizations as well as members. However, I think investments should be risk-tempered when looking at organizational ownership. We're fairly risk-tolerant and I'd take 12% all day long if I thought I could get it. That said, I personally think $225 would be a little low to pay membership even in the short-term. Thus, I'm not sure NAFEX would be served by that. I do still see some 10-12 year life membership payments, but most organizations I belong to are in the 15-20 range. You're correct though, if it were to happen, it would need to address cost issues and projections. BTW, as an INGA lifetime member...it's good to see the organization strengthened by my commitment.




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