Iowa City Press-Citizen from Iowa City, Iowa on October 10, 1997 · Page 2
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Iowa City Press-Citizen from Iowa City, Iowa · Page 2

Iowa City, Iowa
Issue Date:
Friday, October 10, 1997
Page 2
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UI News Pag2A Friday, Oct. 10, 1997 To contact us: UI reporter Patrick J. Riepe Phone: 337-3181 E-mail:; Hours: M-F, 9 a.m.-5 p.m. UI News schedule: Monday: Around UI, What's happening in UI colleges. Wednesday: Q&A session with key decision-makers at UI. Friday: Weekly column looking at events and issues on campus. Daily: Calendar highlights, UI briefs Iowa City Press-Citizen IMU chefs offer delectable fall fare Join the chefs of the Iowa Memorial Union in celebrating the bounty of a native Iowa harvest at the River Room from 11:30 a.m. to 1 p.m. Thursday. This month's menu features garlic crusted pork loin with apple cider glaze, corning pudding, corn and bean salad and apple walnut cake with cinnamon whipped cream. The price is $4.75. The chefs of the IMU will demonstrate how these dishes are prepared and free copies of the day's recipes will be available. For informationa call the IMU Food Service at 335-3105. Activist from India to talk on development International activist Medha Patkar will speak on "Redefining Development: Roles of People's Movements" at 4:15 p.m. Wednesday in Shambaugh Auditorium. Patkar is India's leading social and environmental activist and also serves as the coordinator of the National Alliance of People's Movements, an umbrella organization for groups across India that oppose the current model for development in the country and work to promote alternatives to the modem global economy. Her work has been recognized with a number of national and international awards. Patkar's presentation at the University of Iowa is co-sponsored by the South Asian Studies Program, the Women's Resource and Action Center, and the Women's Studies Program. Groups being formed to discuss diversity Faculty and staff at the University of Iowa can learn more about diversity through a new program sponsored by the UI Office of Affirmative Action. The new Diversity Dialogue Groups are small discussion groups in which people have the opportunity to learn from and with each other about varied perspectives and experiences. They facilitate structured discussions using reading materials, activities, current events, and videos to initiate exploration of diversity-related issues. Diversity Dialogue Groups will meet once a week for six weeks, beginning in late October. Each group will include from six to eight UI staff and faculty members and will be facilitated by trained individuals who represent racial and gender difference. The composition of each group will be structured to be as diverse as possible to enhance group dynamics and discussion. Groups are available Wednesdays, 8 to 9:30 a.m.; Monday lunch, 11:30 a.m. to 1 p.m.; Mondays, 4 to 5:30 p.m.; or Wednesdays, 5-6:30 p.m. Group size will be limited. Faculty and staff members interested in learning more about the university's Diversity Dialogue Group program may contact Diane Finnerty at 335-0705. Sign up deadline is Tuesday. 77 my Randy's CarpeQs r Featuring our incredibly powerful hot water extraction ("Steam cleaning your carpets. Now, ; and upholstered Caff Iowa City Press-Citizen Charles T. Wanninger Michael Beck Dave Parson Gary Schmadette Lee Wilson Daniel W. Brown Susan S. Spilger Paula K. Flom I X carpet Pick TIAA-CREF choices Today's column is by emeritus professor of finance Robert M. Soldofsky, This is the first of his periodic columns highlighting the most common errors made by TIAA-CREF investors. Soldofsky served on UI's Funded Retirement and Insurance Committee from I960 to 1990, and has been a TIAA-CREF participant for 44 years. His book Retire Richer with TIAA-CREF was published by Useful Press in 1996. By Robert Soldofsky For the Press-Citizen Fifteen to twenty errors of judgment mistakes that people make that decrease re- ysuss tirement benefits could easily be listed. Many of these mistakes continue to grow in importance the longer the individual is retired. Among the errors as shown by Robert Soldofsky both theory and experience: mis-allocating investments between TIAA and the four pure CREF equity accounts. (The CREF money market, bond and social choice accounts are not pure equity accounts.) The table shows three aspects of these CREF accounts including the effect of $1,000 growing at the 1979-96 (geometric) average total rate of return for each fund for 15- and 30-year periods. Four aspects of this table merit considerable comment: B First, the total returns on the CREF accounts in 1995-96 range from 5.3 percent in 1996 for the money market account to 36.2 percent in 1995 for the equity index account. The (geometric) average total returns for the last 18 years are 8.2 percent and 16.7 percent for the f ' Coleman picks Folsom to deliver Presidential Lecture From UI News Service University of Iowa president Mary Sue Coleman has selected English professor Ed Folsom to present the 15th annual Presidential Lecture. Folsom, an internationally recognized Walt Whitman scholar, will deliver his lecture Feb. 15 in Clapp Recital Hall. 520 Hwy. o GjuuUuu call Randy's when your carpet needs cleaning. We clean furniture. And, we clean up water damage. today tor a free estimate. 354.4344 CARPETS a INTERIORS Volume 1 57, Number 268 Friday, October 10, 1997 President and publisher Managing editor Advertising director Circulation director Production director Market development director Human Resources Director Controller Return on CREF accounts Money Bond Social CREF Equity Growth Calobal Market Market Choice Stock Index Index Equities Total return: ...1995 5.88 17.84 29.49 30.92 36.17 35.20 20.09 ...1996 5.28 3.08 15.53 19.42 9.76 25.50 17.98 AvorflQo 1979-96 8.17 10.56 13.55 16.16 16.74 16.87 14.49 Relative risk index .435 .821 .768 .801 .856 1.05 1.10 Predicted return of $1,000 growing at average 1979-96 return: ...for 15 years $3,246 $4,506 $7,638 $9,464 $10,159 $10,369 $8,082 ...for 30 years 10,537 20,304 45,295 89,567 103,202 107,518 65,319 For further information about these calculating methods and data, see Robert M Soldofsky's "Retire Richer with TIAA-CREF" Iowa City, Iowa: Useful Press 1996 See the most recent CREF performance data in the latest TIAA-CREF report. Source. Robert M. Soldofsky money market and equity index accounts, respectively. These returns are very likely well below these averages in the forseeable future. Money market funds returned above 10 percent from 1979 through 1982 when the United States experienced its largest and longest period of inflation in this century. Over the past 10 years money market returns have been about 5.6 percent. The nation is well along into what may be hailed as the greatest bull market in stocks ever experienced. The average, very long run total return is in the 10-11 percent range depending upon how and for what period of time it is computed. Therefore, average returns are highly likely to return to these historical levels. Second, observe the rows in the table for 15 and 30 years. These rows show what $1,000 invested in the first year would have grown to by the end of the Folsom joined the UI English department in 1976 and served as its chairman 1991-1995. Former UI president James Freedman initiated the annual event in 1984 to provide a public showcase for university scholarship, research, and creative achievement. The Presidential Lecture Selec Daffodil Bulbs Are Here Now! 1 West, Iowa City, Iowa 52246 Cleaning") method of fully v Y TO SUBSCRIBE: Call Circulation at 337-6038: or come to the Press-Citizen at 1 725 N. Dodge St.; or write to Circulation, P.O. Box 2480. Iowa City, IA 52244. MISSING YOUR PAPER? If you do not receive your paper by 6 a.m., Monday through Friday, call Customer Service at 337-6038 before 10:00 a m. If you do not receive your paper by 6:30 a.m. on Saturday, calf before 10:30 a.m. HAVE A NEWS TIP? Please give u a call. You can reach the appropriate editor or reporter at 337-3181. HAVE A PHOTO SUGGESTION? Call photographers Scott Norm and Kevin tans at 337-3181. IF WE MAKE A MISTAKE: Call the Press-Citizen newsroom at 337-3181. The Press-Citizen strives to make every story fair and accurate. If we are wrong, we will run a correction. TO PLACE AN AO: Just call our retail department at 337-3181, or classified at 339-7355. Press-CitizenBob Patton 15th and 30th years at the average rate of return for those periods. Over a 15-year period, given . the relative risk, chances are that the CREF Stock account would far outpace the money market account. In terms of the next 30 years, the chances are very high that any of the equity accounts would be many times larger than the money market account at that time. Your decisions now have a startling impact on your future financial well-being. You may be curious about why the CREF stock account is likely to have a somewhat lower return in the long-run future than the equity index or the growth equity account. That's because only about 64 percent of the CREF stock account is indexed, that is selected to automatically represent the performance of the American stock market. tion Committee, a faculty committee headed by Leslie Sims, dean of the Graduate College, is accepting nominations for the 1999 presidential lecturer. In addition, the selection committee for the newly created President's Award for Technology Innovation, which Coleman announced at the UI Convocation "Free Radicals' II , J ,.,uu m,m tuiivciiicu nun jiiEiy the svnerav between bodies and sound and the 1 01 ways we can move ISvdnev Dance I fl "On efAwffraliVs major andp QgQt." The Australian Financial Review rui carefully About 1 8 percent is selected by traditional security analysis, which hopes to pick stocks to outperform the market as a whole. Most of the rest is in foreign stocks. Stock analysis is considerably more expensive than "buying the market" as is done with index funds. The growth account docs just what its name suggests: It seeks to hold stocks of rapidly expanding companies with excellent long-run promise. Such - accounts require security analysis and will have more trading costs than indexed accounts. The global equities account holds almost half of its assets in U.S. securities. My analysis of this type of fund over the past 20 years suggests that it is likely to have a somewhat lower return and a higher relative risk than the stock account. Third, and closely related to the points just made, stock funds in general will have different amplitudes of fluctuations and different timing of their high and low points. Most likely, indexed portfolios of stocks selected to mirror a broad average like the S&P 500 stock price index will fluctuate less than portfolios selected by security analysis. Fourth, because of the timing differences of peaks and valleys in these equity funds, prudence suggests placing some of your CREF equity funds in at least two of them to help smooth your retirement benefits. The point of these comments should be very clear. In my opinion, placing "too little" of your TIAA-CREF investments in equities is a great error in judgment that will reduce your income substantially during those long "golden years" of retirement. Sept. 23, is also accepting nominations. Vice President for Research David Skorton has agreed to head that committee. This new award recognizes the year's most creative use of technology for the benefit of the UI learning community. It will be awarded for the first time at the 1998 convocation next fall. obviously mod arovocafhr SDC, band m U between dance and t3? live percussion In f V to a f ... OCTOBER 28, 8 P.M. For TICKET INFORMATION 3 1 9335-11 60 or toll-free in Iowa and western Illinois 1 For TDD and accessibility services call 3 Discounts available for Senior Citizens, The Iowa Cltv PrtttCMten (USPS 268-740) Is published by the Press Citizen Co., Inc.. 1725 North Dodge Street. Iowa City, IA 52245. a member of Speldel Newspapers, Inc.. a wholly owned subsidiary of Gannett Co., Inc., a public company. Published dally except Sunday. Periodical postage paid at Iowa City, Iowa 52240. Mall subscription rates for Johnson County and our retail trade zone: $157 a year (52 weeks), all other mail: $162 a year (52 weeks), by carrier: $130 a year (52 weeks), by motor route: $143 a year (52 weeks). Call for other rates and terms. POSTMASTER: Send address changes to IOWA CITY PKESS-CIT1ZEN, P.O. Box 2480, Iowa City, IA 52244-2480. The Publisher reserves the right to change subscription rates during the term of the subscription upon thirty (30) days notice. This notice may be by letter to the subscriber, by notice contained In the newspaper Itself, or otherwise. Subscription rate changes may be Implemented by changing the duration of the subscription. Member of the Associated Press, which is exclusively entitled to republish news originated by the Press-Citizen. All other publication riqfils are reserved. UI calendar highlights TODAY BUOU FILMS: Pilbw Book, 9:15 p.m.; Hard Eight, 9:15 p.m.; Terrace Room, Iowa Memorial Union, call: 335-3041. THEATER: Tap Dogs, 8 p.m., Hancher Auditorium, call 335-1160. Ain't Misbehavin', 8 p.m., David Thatyer Theatre, Theatre Building, call: 33S1160. Bleach by Leah Ryan, 8 p.m., Theatre B, Theatre Building, call: 335-2700. CONFERENCE: Inc. Magazine Seminars, "Keeping the Human Connection: Quality Service in the Age of Technology," 8:30 am., Terrace Room, Iowa Memorial Union, call: 33S3742. MISC.: Yom Kuppir Services, 6:15 p.m., Main Lounge, Iowa Memorial Union, call: 337-3813. Spaghetti Dinner, fund-raiser for Women's Resource and Action Center, 4:30 p.m., Iowa City Recreation Center, call; 335-1486. READING: Pete Hautman, Ring Game, 8 p.m., Prairie Lights, call: 337-2681. SATURDAY THEATRE - Tap Dogs, 5 and 9 p.m., Hancher Auditorium, call: 335-1 160. , Ain't Misbehavin', 8 p.m., David Thayer Theatre, Theatre Building, call: 335-1160. Bleach by Leah Ryan, 8 p.m., Theatre B, Theatre Building, call: 335-2700. BUOU FILMS: Hard Eight, 7 p.m., Terrace Room; Pilbw Book, 9:15 p.m. Terrace Room; Ponette, 7:15 and 9 p.m., Illinois Room; Iowa Memorial Union, call: 335-3041. ' READING: Jim Heynen, Being Youngest, 4 p.m., Prairie Lights, call: 337-2681. MISC.: 1997 Phi Psi Fat lire Festival, 9 am., Sugarbottom Race Course, Registration begins at 7:30 am., call: 466-9737. 5th Annual "Into the Streets" Volunteer Day, 12:30 p.m.. Meet in Triangle Ballroom, Iowa Memorial Union, call: 335-1497. SUNDAY LECTURE: Discoveries by the Dead ' Sea, George Nickelsburg, "What was Going on at Qumran?", 2 p.m., Third Root Atrium, Gilmore Hall, call: 335-2164. READING: Joe Haldeman, Forever Peace, 8 p.m., Prairie Lights, call: 337-2681. CONCERT: Faculty Piano Trio, Carole Thomas, Leopold LaFosse, Charles Wendt, 3 p.m, Clapp Recital Hall, 335-1603. The calendar is a partial listing of events. For irfamatKA cal the Campus Information Center at 335-3055. done froupai. "-tv. k. y- rw with a three-piece on the stage, ex plores the relationship a lull-evening's work called ee Radicals, A - 800 - HANCHER 1 9335-1 158 UI Students, and Youth tt'MH Supported by The FREEDOM Group GAMSJETT i I

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