Posted by: investmentclub | October 11, 2007

Previous Meetings

Guest Speaker: Kit MacNee

Merrill Lynch – Financial Advisor

Presentation Summary
Kit MacNee: conservative by nature

Best news source: NPR radio. Not conservative.

  • Covers more than the headlines

Real Estate today:

  • Realtors: hurting, cannot get the money from Banks
  • No money = no activity
  • Construction business: down. People cannot afford repairs.
  • All this means it’ll be hard for us to land a job

Real estate: huge

  • Will touch each of our lives
  • San Bernardino and Riverside = down over 50% in both counties
  • Kit: has not been able to refinance her home for 3 years

What is it like working as a financial advisor?

  • Kit loves it
  • Makes a difference in people’s live
  • Helps people manage their money
  • Exciting to work with people who want to make their dreams come true
  • Gets to use all the knowledge from college, state planning field, community service,
  • Takes a lot of time
  • 3-5 year time: busy building the business and cash flow isn’t there yet (scary)
  • Important: if you want to be a financial advisor – you make it happen. No one else. People rotate between firms all the time.
  • You want to be with people who stick
  • Every financial group has a different style
  • We’re all different: diff knowledge, personality
  • Financial advisors pick and choose their clients (Kit picks friends)
  • Expect to work 60-70 hrs a week

What products does Merrill Lynch offer?

  • if someone came and wanted to bring a business public – Kit can make it happen
  • help parents save for their kids
  • Kit’s main client focus: working with women so that they may be financially independent
    • women (young and old): don’t like to deal with money but they have to because of their longevity
  • managing non-profit org. cash flow
  • client annual income range: 40k, 15k, some have 250k assets to give,
  • Kit philosophy: help all, you never know where your client will take you (network)
  • Strategy is big
  • The more money you have, the cheaper it is to invest
  • More money = more options open to you
  • Feed based account = agreed upon fee (generally 1%) Why? Better customer service.

E-trade: Kit cannot beat their prices

  • No less quality than Merrill Lynch
  • Yahoo finance: ton of info
  • If you don’t understand go to
  • Buying individual security
  • If you want to set aside a little bit of money: try Mutual Fund (fidelity, American funds, franklin fund) -> they do a little bit of everything but very very well.
  • C-shares: no cost up front
    • After one year: sell it and move on at no cost
  • A:
  • B shares – need to stay in it for a long time. Not flexible.
  • ING – you can register online at ~5%
    • Best rates for very small dollar amount start
    • Helps you save because it takes a while to get at it
  • Long term savings: makes sure where you work has a 41K plan
    • Big at our age
    • Goal: retire at 75 (kit)
    • For seniors: expenses go up not down
    • People assume expenses remain the same when we retire
    • 23 year old: putting aside $100/month
      • You would be able to save $24 million
      • Gives 320-400,000 to expense a year
    • Wait until you’re 30 to put aside $100/ month
      • Be able to save $3.5 mill
    • Wait until you’re 47 year old
      • Cannot even make 2.5 mill (maybe 2 mill)
    • You don’t want to have to withdraw 5% (50K if it’s 1 mill) => not a lot
    • Recommended Book: the Automatic Millionaire
      • Talks about how:
        • You need to make saving automatic: pay yourself first
        • The Latte effect: we all have something that we buy a lot of that we don’t necessarily need
    • Thought for the day: Richard Bernstein
      • ML economists is a bit more pessimistic
      • However, good at predicting the economy
    • Kit: a fiduciary for people
    • Warren Buffett:
      • Investment genius
      • Selling everything he owns in China
      • Better to sell near the top than near the bottom
    • Be careful with the middle market (Bubbles- a poor way to build wealth)
    • Buy large cap stocks- Cisco, Kellogs, Johnson & Johnson: all large multi-national organizations that already pay dividends
    • Long term investing: take a LT time horizon.
      • Watch news, listen to the world, develop good tactics
      • Staples good: why? People still need to eat, buy insurance, gas, etc
    • First baby boomer applied for soc. Sec (48 million baby boomer)
      • Everything the BB has touched, they have changed
      • Caused rock n’ Roll, hippies, tech boom, philanthropy
      • Now, they need health care
      • Yuppies are the new BB
    • Big Sector: Info. System
      • Since the late 90s: IS hasn’t changed too much

What can college students do to improve their finance?

  • Don’t get into credit card debt
  • Buy real estate: land, condo, house
  • In 84’: 11 ¾%
  • Buy cars used: try not to get a car loan. Aim: no car payments
  • The only resource we are given that we cannot get more of is time.
  • Cars never go up in value
  • Start Individual retirement account ( even if it’s $1 a month)
  • Live within your means
    • Greatest example: look up to the people who survived the Great Depression
    • You can have it all, but not all at the same time
    • Don’t try to live beyond your means – it won’t bring you long term happiness

Which class did you find most helpful?

1) A poli-sci course about energy

  • 7 sisters
  • OPEC countries
  • Global economics
  • Colonialism

2) Finance Class

  • focused on case studies
  • studied real businesses (i.e.: Bene Hana)

3) Accounting

– Kit can look at a financial statement and can find problems quickly

– You will eventually need to make or oversee someone’s budget no matter where you work
Words of Wisdom

The truly wealthy and successful made their own businesses


-people who are really wealthy are self employed

Enjoy life!

  • Kit, “Best decision I ever made was to stay at home for 13 years”
    • Learned how to play, be a person
    • All valuable lessons that can be carried forward

2nd General Meeting (10/17/07)

Officers Present: Tai, Laura, Ling, Annie, Jenny,

Officers Absent: Tommy, Tigist

Members Present: 44 Members present (See attendance sheet)

Old News:

  1. Stalla Representative Position
    1. Position is still open
    2. Please see Laura for more information
  1. Village Wok Fundraiser
    1. Proceeds are still being calculated

New News:

  1. What’s in the News?
    1. Current events given by Jenny Ngov
  1. Merrill Lynch
    1. Guest speaker: Mary “Kit” MacNee (Financial Advisor)
    2. Summary of presentation will be posted on the IC website and emailed


1st General Meeting (10/10/07)

Officers Present: Tai, Laura, Ling, Annie, Jenny, Tommy, Tigist

Members Present: 31 Members present (See attendance sheet)

New News:
1. Stalla Representative Position Open

  • This position is open to all members
  • Position is highly recommended for those who plan on taking the CFA exam

2. What’s in the News?

  • IC will be implementing this new program starting next week
  • At the beginning of each meeting, someone will be presenting current events that effect all investors

3. SEO Internship Opportunity

  • Rep: Rory Meyers
  • 10-week summer program
  • For more information email Rory at
  • SEO will have a booth open at Meet the Firms (10/11/07 at UCR extension center)

4. Global Business Brigades

  • International internship/ volunteer opportunity
  • A chance to provide business solutions to micro-enterprises in rural villages
  • Current focus: Honduras
  • Program is established in UCLA, Stanford, and Harvard
  • If interested, contact Chi Nkwenti at or at 310-256-9255

5. Merrill Lynch

  • We will have a guest speaker from Merrill Lynch next week
  • Please come prepared with questions, resume, and business attire if you wish to pursue a career with Merrill Lynch

6. Fundraiser

  • Village Wok
  • Sunday, Oct 14, 2007
  • 4:00-8:00 p.m.
  • 10% discount (15% of proceeds will go to IC)


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