It’s not in heaven or across the sea: Financial security is near by
As originally appeared in The Jerusalem Post on September 27, 2024.
“If there were in the world today any large number of people who desired their own happiness more than they desired the unhappiness of others, we could have a paradise in a few years.” -Bertrand Russell
This week we read a double Torah portion of Nitzavim and Vayelech. It’s the final charge given to the Jewish people by Moses on the last day of his life. I am going to start off by repeating a story that I wrote last year because of its relevance. Rabbi Jonathan Sachs writes, “When I was a student at university in the late 1960s – the era of student protests, psychedelic drugs, and the Beatles meditating with the Maharishi Mahesh Yogi – a story went the rounds. An American Jewish woman in her sixties travelled to north India to see a celebrated guru. There were huge crowds waiting to see the holy man, but she pushed through, saying that she needed to see him urgently. Eventually, after weaving through the swaying crowds, she entered the tent and stood in the presence of the master himself. What she said that day has entered the realm of legend. She said, “Marvin, listen to your mother. Enough already. Come home.”
He continues, “Starting in the sixties Jews made their way into many religions and cultures with one notable exception: their own. Yet Judaism has historically had its mystics and meditators, its poets and philosophers, its holy men and women, its visionaries and prophets. It has often seemed as if the longing we have for spiritual enlightenment is in direct proportion to its distance, its foreignness, its unfamiliarity. We prefer the far to the near.
Moses had already foreseen this possibility:
“Now what I am commanding you today is not too difficult for you or beyond your reach. It is not in heaven, so that you have to ask, “Who will ascend into heaven to get it and proclaim it to us so we may obey it?” Nor is it beyond the sea, so that you have to ask, “Who will cross the sea to get it and proclaim it to us so we may obey it?” No, the word is very near you; it is in your mouth and in your heart so you may obey it. (Deut. 30:11-14)”
Rabbi Sachs concludes, “Moses sensed prophetically that in the future Jews would say that to find inspiration we have to ascend to heaven or cross the sea. It is anywhere but here.”
The same holds true for finance as well. I can’t tell you how many people aren’t satisfied with tried and tested ways of growing wealth, and search out get rich quick, or esoteric, untested means to create a nest-egg. A few weeks ago, I spoke to a retired couple that was thinking about making Aliyah. They had about $500,000 in cash from the sale of a property. After going through their entire financial situation, I suggested a diversified portfolio using Exchange Traded Funds(ETFs) linked to broad-based market indices as well as FDIC insured CDs(Certificates of Deposit). They said that their son has dabbled in trading commodities, and he suggested that they also invest this way. They started asking me about my opinion on investing in Cocoa, Orange Juice and Wheat. I cynically said that if you mean buying chocolate milk, some Tropicana with pulp or a loaf of bread all is good, but if this your retirement plan, you’re crazy.
When it comes to growing wealth it’s not so complicated. Keep it simple. Stay away from social media reels, where debt and zero-down real estate are hailed as sound financial advice. Don’t make the mistake of being “too smart”. It’s not just wheat. I could write a book about the crazy investment ideas that I have seen people throw money at. All in the hope of achieving an outsized return. What usually happens is these schemes blow up and most or all of their investment is lost. Keep in mind the basic principle- if it sounds too good to be true it probably is.
I think another way to understand the concept of ‘not needing to ascend to the heavens or cross the sea’ is procrastination. If it seems like something is unachievable, we tend to either delay or put the task off. I think that we can learn that while challenges may seem insurmountable, they really can be achieved, and we shouldn’t put them off. I can’t stress enough the importance of just starting. Too often individuals delay investing because they think that they don’t have enough money or that the market is too high. They think that if they don’t have hundreds of thousands of dollars, there is no point investing. So they end up keeping their money in a zero percent interest account in the bank. Or they say that the market is trading near all time high’s so they will invest after the market drops. Don’t think that you have the secret sauce and can time market movements. If most successful investors can’t time the market, why do you think that you can?
There is no need to search long and far, the path to a secure financial future is right in front of you. Just follow the basic principles and keep it simple.
The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.
Aaron Katsman is the author of Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing (McGraw-Hill), and is a licensed financial professional both in the United States and Israel, and helps people who open investment accounts in the United States. Securities are offered through Portfolio Resources Group, Inc. (www.prginc.net). Member FINRA, SIPC, MSRB, SIFMA, FSI. For more information, call (02) 624-0995 visit www.aaronkatsman.com or email aaron@lighthousecapital.co.il.
