Present Value of Lifetime NRA Membership

[Ohen Cepel]

I'm not sure that the assumption of the $750 life price tag is a good one. I would expect it to go up sooner or later.

Also, are they still doing the kid discount? I thought they had stopped that a few years back. I would be all over it if it's still going! Never understood why my Dad didn't do it back when......

 

[GunGoBoom]

It's not a ripoff because you can't actually get 10% with that little money. Faulty assumption. Use 2.5% of a savings account, because that's all you could get with that little money. Or even be generous and use a 4-6% CD rate. To me it's a good deal regardless, because now I can get their outstanding magazine for life, and now that the life membership is paid, focus on giving extra money to groups that give me more bang for my RKBA buck, such as GOA.

 

[ClarkEMyers]

I paid $200 in the mid 60's; it's been worth it.

I paid $200 in the mid 60's; it's been worth it. Upgraded over the years to Patron and I figured my benefits were worth the cost - regardless of annual rates. Then too I voted at Cincinnatti and from time to time since then - priceless.

 

[Creeping Incrementalism]

Hey Werewolf

Just to prove it I dug up my Brealey & Myers Principles of Corporate Finance, 6th ed. On page 156, using data from the Ibbotson Associates, Inc., 1998 Yearbook, from 1926 to 1997, a 71 year period (I used 69 years in my example in post #1), the S&P 500 averaged 9.7% real growth during this period. And my 401(k) is mostly S&P 500.

 

[Werewolf]

the S&P 500 averaged 9.7% real growth during this period.

Sure it did but how many people have a portfolio with a 69 year growth horizon.

Break the same 69 years you used down into 20 year chunks and see what you get out of each chunk.

Better yet start back in 29 and measure the growth over 20 years then slide your window forward 1 year and calculate your average annual return. Do this until you get up to the 1985 - 2005 window. The results will surprise you.

Getting into the market (for example via an index fund) is a hit or miss proposition and your return can be be very greatly impacted by being just one year late or early.

Use a 30 or 40 year window (probably more realistic for true long term investing) and you won't see that 9.7%. If I remember right (had to do this as a project when in college and majoring in Finance) the gamut runs -2% to +16%, and that's using 20 year periods. Using 40 year sliding window periods worst case is around 4% and best gets you up to 10 something.

I'll give ya that 4% is probably too low but 10% is way too high. On that I suppose we'll just have to agree to disagree.

 

[bigjim]

You guys are missing the value of the American rifleman magazine every month for the rest of your life.

That is worth 20 bucks a year easy.

 

[Werewolf]

You guys are missing the value of the American rifleman magazine every month for the rest of your life.

No I'm not. I get American Rifleman and 1st Liberty every month.

I may even become a life member some point (just to support the NRA a bit more) but since I'm 53 paying $42/year (or $32 if I let my gun club do the renewal thing) is a much better deal than paying out $750 now.

 

[Creeping Incrementalism]

Werewolf:

Sure it did but how many people have a portfolio with a 69 year growth horizon.

I'm talking about a lifetime membership here and not just until retirement. So that's my theory behind using 10%.

 

[JohnBT]

"a much better deal"

Not for the NRA. We are discussing supporting the NRA, aren't we?

You can't take it with you.

John

 

[Waitone]

Main Entry:somniferous
Function:adjective

Synonyms SOPORIFIC 1, narcotic, sleepy, slumberous, somnifacient, somnific, somnolent, somnorific, soporiferous, soporifical

Merriam-Webster's Collegiate Thesaurus

10% is waaaay too high. Try 3%. Bust t up into 4 segments and goose I by 20% in each segment. Take your final figure and back track into an effective I.
Confirm results with a die, chicken bones, pig knuckles, or coin flip. Then remember, the NRA will more than likely set it up to market a wash.

 

[hksw]

Eh, for me, going to Life was not a matter of $. It was based on principle.

 

[dk-corriveau]

This is too funny. I have been using the NPV argument lately to justify getting a Lifetime membership, but I haven't pulled the trigger yet.

 

[Creeping Incrementalism]

I ending up going with the Easy Pay Life Membership. I also paid for a lifetime GOA membership at the same time, but all up front.

I just started this thread because I was about to sign up for life when I noticed it was really cheaper to pay year by year. Not that a few hundred bucks over the rest of your life makes a significant difference anyway, and with guns, in general, it's better to contribute now, because once something gets taken away, it is usually impossible to get it back. AWB sunset made no difference for me because while it was in effect, CA passed an even stricter assault weapon law.

 

[RoosterBrown]

The flaw in your logic

The flaw in your logic is that you think the NRA basic membership will stay a constant over the next 20, 30, 40 yrs.

 

[Audrey]

Actually, the flawed logic in this thread is that the NRA protects your 2A rights.

The NRA "negotiates" with the puppets commonly referred to as "politicians" and then brainwashes you into believing that it was the best they could do. Hence the gradual erosion of our RKBA.

I urge everyone of you to PERSONALLY let your "representatives" know your position on EVERY issue you find important and DO NOT leave it to the likes of the NRA.

The NRA is controlled opposition. A gatekeeper.

 

[sfmittels]

No offense intended, but using a financial calculation to justify (or not) an investment in your future freedom somehow strikes me as silly. I understand your logic, and of course the entire calculation is dependent on your life span expectation. That's not the point.

Over a period of years (not even sure how many - maybe 25), I've gradually worked my way up from annual to Life to Patron to Endowment to Benefactor. I assure you that, along the way, I've made donations over and above my payment required to reach the next level.

I've lived through numerous tales of doom and gloom. I lived in California around 1980 when a ballot initiative caused a run on guns bigger than what we're seeing now (I forget the proposition number, but it was defeated - but that was long before California became California).

The NRA has always been there. No, they aren't as radical as many people would prefer, nor or they as uncompromising as other RKBA organizations. But that's why they succeed. They know when to back off and when to attack. No, they don't always get it right, but if they were perfect, we wouldn't need them. Spend the dough for a Life membership, then work your way up. Is it a good financial investment? Ask your great grandchildren the next time you dream about them.

 

[Lone_Gunman]

If you think you can consistenly make 10% in the stock market, you are seriously deluded. I have been around long enough to have believed the same thing you do now, only to become older and wiser... and realize that investors that tell you to expect a 10% return are crazy. In fact, if I had an advisor that told me that now, I would RUN not walk away from him.

I think you should count on no more than 7%, and after you take taxes out of that, you will probably be down to more like a 6% return.

 

[jakemccoy]

I didn't read the thread...

Is the original post a joke?

Isn't the point of paying for a lifetime membership to end up paying less?

The point of the lifetime membership is to support the NRA above regular membership dues and get the bonus of a lifetime membership. It's not about you individually. It's about supporting the team.

 

[Geezer Glide]

I became a Life Member in 1976. I don't remember the cost but, you could split it up in 4 quarterly payments. I guess I've already got my money's worth.