Invest, Save and Give

Even though most realize, too late, that money doesn’t buy happiness, they still think it will buy peace of mind or some type of “security.” Many still think money buys happiness. Arnold Schwarzennegger realized that money won’t make you happy, and he said it in a funny way: “Money doesn’t make you happy. I now have $50 million but I was just as happy when I had $48 million.”

Some think that the way to happiness is to have the government give you everything you need (at the expense of others.) Gerald R. Ford said, “A government big enough to give you everythinig you want is a government big enough to take from everything you have.”

One of my fears is that my posts about investing are too short-term in nature. I fear that my readers will build up a huge store of wealth and then leave this world with nothing. It is best to invest with a theologically correct understanding of life, wealth, eternity, and purpose. That will greatly influence you views of investing, saving and giving.

“The psychology of spending and gifting is a huge hurdle to get over”

One of the contributors in the Fidelity Investor Community (ordinaryman is his handle) wrestles with this very thing. This is what he said regarding the subject line above of his post:

“My father was born in 1920 which should tell you a lot about his thinking. He was 9 when the world came to an end (nearly). He did very well in life though it came slowly through owning an insurance agency in a mid-sized city. He always had partners. He died at 88 after 8 years in a nursing home. His problems were vision (macular degeneration) which blinded him with no treatment available at that time. His blindness isolated him from the world, and he descended into depression as a result. He also had a stroke at 80 which impaired his mind, not his body. He died with an estate over $3 million and owed $450,000. in Estate Tax, though his attorney and CPA convinced him he could gift $10,000. per year to his three children, and 9 grandchildren which he did for 9 years before his death. I was one of his business partners for almost 15 years and while I knew what his income was, I know that he lived terrified about running out of money.

His thinking carried over to me and my siblings. We have all done well in life, and all inherited some money from both parents. I’ve been retired almost 3 years now and our estate is worth nearly 12 million. 15% of it is in an IRA, 75% in a taxable investment account, and I’m 10% real estate including our home, a vacation shared ownership home two hours away from home, and a commercial office building that generates about $45k in rent income. At 71 I grapple with questions about mortality and spending. Intellectually, I know that I’m not going to run out of money either. But on an emotional level, I cannot “turn over” and start gifting money as my father did. Not yet. I struggle with it. We are not extravagant people by any stretch of the imagination. Some would call me “tight” and I’m fine with the label. I have close friends who are high net worth as well and encouraging me to commit funds (for example) towards our local college’s establishment of a new men’s golf team, and other charitable endeavors. Why does someone like me struggle with committing to gift sizable amounts of money to this, and other charities? The psychology of it all is very hard to get over and I am asking for people to share any similar feelings you’ve had, and how you managed to “turn loose” of some of it. Thank you all very much for your thoughts.”

My Response to Ordinaryman

My thinking tends to go with the things Jesus said, or at least that is my goal and desire. You might say I have a worldview based on things that cannot be seen with the eye, but are, in my view, reality. When I write about investing in my blog my greatest fear is that people are only thinking about the short-term (this life) instead of the long-term (eternity.) The words in italics are not what Jesus said.

Matthew 6:19-21 – “Do not lay up for yourselves treasures on earth, where moth and rust destroy (depressions and recessions) and where thieves (inflation and taxes) break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also.”

Worldview and Investing

There are good reasons to invest. Investing is work, and work is a good thing. Investing is like tending to a garden or caring for a herd of sheep. The goal is for the crop to be more than what was planted and for the herd to provide more wool and food for the future. But what good is more food if it is not available to benefit others? What farmer or shepherd wants more sheep for their own consumption? You can only eat so much corn or mutton.

Worldview and Saving

There are good reasons to save. If you read the book of Proverbs you will find wisdom for saving. But there are also really bad reasons. One example, given by Jesus, was the rich fool who built bigger barns and died that day. If you save to care for your family and so that you will have resources to share with others, then you may be saving for the right reasons.

Worldview and Giving

Giving is not optional and there is a harvest from giving. If you think giving is optional, then you don’t understand God or what He has done. God is generous and provides seed for those who sow. 2 Corinthians 9:10 says, “He who supplies seed to the sower and bread for food will supply and multiply your seed for sowing and increase the harvest of your righteousness.” We would all do well to think about John 3:16 when it comes to an example of giving.

Conclusion

The way you view your world will influence your mindset, your emotions, your purposes and your plans. Your views have great power for good or for evil. Don’t miss out on the things that matter by having a distorted view of your life and purpose.

All scripture passages are from the English Standard Version except as otherwise noted.