EXPERT OPINION
The art of GIVING
ate about, creates the greatest purpose.
Of course, spending on lifestyle must
always be in context of your long-term
financial plan, taking into account your
earnings and savings.
GIVING BACK
Written by Citadel Philanthropy Specialist,
Alan Wellburn
PHOTOGRAPH: SUPPLIED
CREATING VALUE
When it comes to creating value and
growing wealth, the old adage ‘easy
come, easy go’ holds true, so careful
consideration should be given to how
you choose to create your wealth. Ask
yourself: does it create meaning? Am I
adding value to society?
When investing or saving, proper
planning and thought is 60% of the
battle; the rest comes down to strategic
asset allocation, careful fund manager
and stock selection. Long-term value
creation is key and requires patience.
Socially responsible investing is increasingly finding accord with this long-term
sustainable approach to investing.
Increasingly investors are demanding
investment solutions that apply an environmental, social and governance
(ESG) screen to the companies being
considered for investment.
GIVING PURPOSE
What we do with our money gives it
purpose. How we spend it requires
thought and responsibility. The worst
we can do is waste it through thoughtless spending and handouts. Spending
money on those you love and care for,
or on things or causes you are passion-
Giving money also requires careful
thought. Start by differentiating between charity and philanthropy. Charity is a short-term solution, typically a
handout, which requires no involvement and focuses on treating the
symptoms of a problem. Philanthropy
requires a long-term solution to tackle
the cause of a problem, often necessitating personal involvement and typically formalised through a personal
foundation or donor advised fund (collective foundation). As is the case
with creating wealth, giving it value
and purpose is uniquely individual.
That said, wealth management is about
more than just a bank balance. In the
words of 19th century Scottish-American industrialist and philanthropist,
Andrew Carnegie: “This then, is held to
be the duty of the man of wealth:
First, to set an example of modest, unostentatious living, shunning display
or extravagance; to provide moderately
for the legitimate wants of those dependent upon him; and after doing so,
to consider all surplus revenues which
come to him simply as trust funds
which he is called upon to administer… to produce the most beneficial results for the community.” JL
START BY DIFFERENTIATING BETWEEN CHARITY AND
PHILANTHROPY. CHARITY IS A SHORT-TERM SOLUTION,
TYPICALLY A HANDOUT, WHICH REQUIRES NO INVOLVEMENT
AND FOCUSES ON TREATING THE SYMPTOMS OF A PROBLEM.
JEWISH LIFE
ISSUE 72 51