Tag Archives: Investment Advice

We Forgive You Mr. Madoff: Love, Advisors, Nonprofits, & Jewish Community

Dear Mr. Madoff,

We in the Investment Advisory, Nonprofit, and Jewish community forgive you (well maybe not EVERYONE) Let me explain:

About a week ago, I asked people if you could ever be forgiven for the crimes you have committed against charities who help to make others lives better, your own people in the Jewish community, and from advisers in the investment business (which happens to be the same business I’m in). I asked the question whether you could ever be forgiven, not because I believe that you ever will, but because I wanted to know because of my own sense of religious curiosity, whether someone who had committed the crimes you had could ever be forgiven in the eyes of god.

Prior to today, I wondered and questioned whether it was even plausible for someone who had the reputation that you did, to knowingly deceive your fellow Jews, charities who help people, and innocent investors who turned over their life savings to you. I didn’t think that anyone had it in them to be able to look someone squarely in the eye when someone turns over their life savings to you (lot of trust there right, I know, because I have these same conversations every day with people), and KNOW the way you DID that you were GOING to bankrupt them. You looked people in the eye knowing you were going to ruin them.  Whoever read my previous posting on this subject, please forgive me.

Today I learned the truth. You are a monster. You knew exactly what you were doing. Sometimes when the train has left the station, it’s difficult to admit when we have done something wrong. We may tend to ignore difficult things because we don’t like to deal with them, perhaps because we are afraid. Sometimes there are consequences for this.  That’s not what happened in your case though. With you, you knew what you were doing was wrong, you SAID you knew that one day it would catch up with you. Why would you CONTINUE to lure more victims when you knew would get caught? You took money from charities, Jewish ones, as a fellow Jew. You took from CHARITIES and gave to YOURSELF. The enemies of the Jews are rejoicing for what you have done. You ARE a terrorist of the worst kind. You ARE a monster.

Ruth Ann Harnisch and I exchanged a series of emails about you after she posted a comment on my article about you where I questioned whether it was possible for someone to knowingly do what you did. I couldn’t believe it. Perhaps I’m a softee and believe that people deep down want to do the right thing. Ruth Ann Harnisch didn’t think I was looking at reality. She was right. You are the monster. We already know that now though. The discussion that we proceeded to have is worth repeating to others. It has to do with forgiveness. This was the question that I had originally asked. Could you ever be forgiven? The answer we came to was YES.

The kind of forgiveness we are talking about is the same kind of forgiveness someone has when a serial killer murders their child. We forgive the act. We forgive, because WE don’t want to hold on to the poisonous venom that we feel for you for what you have done. We forgive because forgiveness is good for us, Mr. Madoff, not for you. Make no mistake Mr. Madoff, you ARE a murderer.

As I looked into “forgiveness” further, I came across the story about “casting the first stone”

The King James Version of the Bible, in John 8:1 – 11 scribes and Pharisees had caught a woman in the act of adultery (the woman commonly referred to as the prostitute) and told Jesus who was teaching in the temple that the Mosaic Law required she be stoned to death. Trying to make an opportunity of this to trick Jesus that they might accuse Him, they, with stones in hand, asked Jesus what He says about the Law. After Jesus tried to ignore their repeated questioning, He told them “He that is without sin among you, let him first cast a stone at her.” One by one each man dropped his stone and walked away.

Jesus was not arguing with the judgment. Nor was Jesus arguing the law nor the woman’s guilt. Jesus was arguing with our right to execute the woman. Once all the men had dropped their stones Jesus confronted the woman and asked her if any of the men were still there to condemn her. When she answered “No man, Lord”, Jesus told her that neither did He – He forgave her of her sin. He did not excuse the sin of adultery/prostitution, he forgave her of it. All that is sinful before forgiveness is still sinful after forgiveness. Not only was Jesus not afraid to call a sin a sin, He was not afraid to call a sinner a sinner. He even reminded her of the sin of adultery/prostitution by telling her “Go and sin no more.”

I asked my Rabbi about the process of asking for forgiveness when you have committed a sin against another. He told me that in Judaism, part of  repentance is the process of providing some form of restitution. Another smart man named Randy Pausch, whose “The Last Lecture” became an instant classic about how to live said this; “When you do something bad and want to apologize, know that a good apology has three parts.  1) I screwed up 2) I’m sorry 3) (This is the part most people don’t do) How can I make it right?”

Today in court Mr. Madoff, I heard you say you screwed up, and that you were sorry. What I didn’t hear was any interest in making good on the wrong you had done. READ WHAT MADOFF TOLD THE JUDGE Fortunately for you Mr. Madoff, you will have a lot of time to figure out how to make it right. Frankly, I’m not interested and don’t really care what you do. I’ve learned that to forgive, does not necessarily mean you have to “receive” someone back into your life. So with that Mr. Madoff, I’ll let you know that I’ve forgiven you, and now I’m done with you.

“You Go, and Sin No More”

SINcerely,

Investment Advisors, Nonprofits, and your friends in the Jewish community

Read my earlier post Can Madoff Ever Earn Forgiveness?

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Filed under Current Events, FOUNDATIONS, INVESTING, NON-PROFIT & CHARITY

The 5 Steps to Buying Your Happiness in Recessionary Times

President Harry S. Truman once said; “Recession is when a neighbor loses his job. Depression is when you lose yours.” While you may not have lost your job, more than likely, there’s a good chance you have lost a lot of money in your portfolio and are probably wondering what to do. It doesn’t matter if you are a business, individual, or charity, it seems as if all groups have lost faith in the buy and hold philosophy, and many are beginning to wonder if their advisers are actually doing anything to help them. Before you fire your adviser, put everything into cash under your mattress, and hunker down for nuclear Armageddon, there are a few things you should understand about how investments ideally should work within your plan, the role of advisers on your team, and important questions you should be asking whether you invest on your own, or you have someone helping you.

Revisit Your Goals
What’s important to you? If you found out you only had 6 months to live, what would you want to do in your life? Try writing your own eulogy. How would you want to be remembered? What would you want people to say about you? By starting with the important questions of life, you can get a really clear gut check and determine if you are actually doing what you want to do in your life. What are the things that came up? Often, we have limiting assumptions about what is possible in life. We use phrases like; “Some time, some day, if only blah, blah, blah”. When you take the time to have these conversations with yourself (or an adviser), frequently our real values get uncovered and we identify things we’ve always wanted to do. For example, many people say, “I’d want to spend more time with family”, or “I’d want to travel”. Once you have a list of these things, then then think about the reasons or excuses you’ve been making on why now isn’t the time. Usually this sounds like “I don’t have the money”, or “I’m to busy”.

Prioritize Your Goals
OK, so if not now, when? How much is enough? When will be the day? Perhaps you’ve achieved success in your business but you simply just don’t want to be bored with a “traditional retirement”. The important thing to consider here is WHEN. While some goals might seem crazy, no worries, just write them down. Ideally, when would you want to spend more time with family? What would you do? Where would you travel? Start to create some ideal time frames for the things that you said were important to you. Don’t worry about whether you think they are realistic at this point, just recognize that spending more time with your family WOULD make you happy, and write it down. Keep doing this exercise until you have at least 10 items on your list. Once you have the items listed, then prioritize them in order of importance. I like using index cards to do this since it allows you to move things around as you think of new things. Now ask yourself which of your goals you would be willing to give up in exchange for achieving the most important ones. Once you have completed this exercise, you have the foundation of a very powerful life plan for yourself. Now the question becomes how to pay for it.

Buy Your Happiness
OK, so how the heck do you do that right? “But I always thought…,blah, blah, blah”…Stop. Yes, money CAN buy happiness. I know,… I had you at hello, right? Here’s the thing about that…Having money will NOT make you happy, however figuring out what makes you happy, (as we discovered above in the “eulogy” exercise) formed the basis of your new plan. Now that you know what DOES make you happy, (spending more time with family, giving back to society, etc., now the question becomes, how do I use my wealth to buy those things for myself? Before you go postal on me, ask yourself, how much would it cost to leave your job so you can spend more time with family? What’s preventing it now? Perhaps you answered that making a difference in the world would make you happy? Well how much does it cost to make a difference? How much time do you want to spend making a difference? What’s preventing you from doing that now? OK, so your job is preventing that, how much do I need to have in order to “retire” so I can do the things that are important to me. Are you following all this? The point of this is to start to think about what it will cost, both personally, and financially to achieve your most important goals.

Position Your Finances
More than likely, taking less risk with your investments was one of your goals, (aka “Sleeping at night). During our exercise with the index cards, I asked you to prioritize how important your goals were to you. Where did investment risk fall in that conversation? The question really is, “What are you willing to do to reduce the risk in your portfolio?”. I think an even bigger question is, “How much risk do you really need to take in order to achieve your objectives?”. In my experience, investors are quite familiar with the question, “What’s your risk tolerance”, but most people have no idea how to answer that objectively. I have good news for you. Now that you know exactly what makes you happy, what your priorities are, and what you are willing to give up in order to achieve them, you’ve just answered what I believe is the most important question in planning; “How much, by when”.

Get Help when Needed
The fact is, we as investors usually don’t take the time to do these exercises, but now more than ever is the time to start. You have to know where you are, and what corrections you can make to get you back on track to achieving what’s important. If you don’t know how to do that, find a good adviser who can. If you have an adviser, talk to them about what you discovered about your goals and see how they can help you achieve them. If you don’t feel comfortable discussing this with your adviser, perhaps it’s time to find another.

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Filed under Current Events, ECONOMY, FINANCIAL PLANNING, INVESTING, Law of Attraction, NON-PROFIT & CHARITY, SOCIAL ENTREPRENEURSHIP