Chapter 24: Objectives and Programs

 

NAIC has two purposes:

1) To encourage individual people to own stock directly.

2) To provide a learn-by-doing investment program for anyone interested.

 

ENCOURAGING INDIVIDUAL OWNERSHIP:

 

The individual investor's influence is in decline overall. Used to be (1950s) that 80% of stocks were owned by individuals. Now 80% of stocks are owned by institutional investors.

 

NAIC and 400 corporations have joined "Own Your Share of America" campaign, pointing out the advantages of stock ownership to individuals.

 

NAIC backs a capital gains program:

 

1) Exempt the first $25,000 of capital gains annually from taxation for individuals

2) Grant a lifetime exemption of $500,000 on an individual's overall equity investment

3) All individual to roll over capital gains without taxation until retirement age

4) Index the tax base of capital gains to offset the effects of inflation

 

HELPING WITH INVESTMENT TOOLS:

 

Assuming 7% per year interest, if one starts at age 40 saving $200/month for 20 years, they can withdraw $5000 / year (plus 3% for inflation) until they're 80 and still have a pile of money left over.

 

However, do your own math to get a clear sense of your retirement needs.

 

NAIC offers a lot of services to help:

 

NAIC Councils	Support in 100 areas around the nation
Low-Cost Investment Plan	Invest in DRIPs almost free of charge
NAIC Growth Fund, Inc	Closed-end mutual fund
NAIC Stock Service	Purchase stocks and consolidate holdings in one account
Investors Congress	Annual convention to meet and learn
Word Federation of Investors Meeting	Offers a world-view of investing biennially
Investors Expo	Annual exposition for corporations to present their goods
Investment Education Institute	Youth investing and awards to individuals
NAIC Computer Group	Software and e-access
NAIC Investor Advisory Service	3 completed SSGs per month!!
Better Investing Magazine	Free with NAIC dues

 

Other NAIC Aids

 

A more detailed list of NAIC goodies is available in the NAIC Membership Guide, available from NAIC by request.