Planting Seeds for Wealth

by GARY HIRSCH

For many of us, the good old days ended a couple of years ago with the crash of the technology sector and the accompanying drop in all the major equity markets.

Before that, we were flying high. At the gym where I exercise, the television and peoples’ attention were fixed on the financial networks, as investors watched stock prices and their investment accounts grow faster than they had ever dreamed. It seemed that boat, car, second home or other big-ticket item was affordable, and retirement was finally within reach. Giving was easier and more painless than it had ever been. Charities were flush and implored us to donate stock that had grown in value, so we could avoid paying capital gains taxes.

And then, as they always do, things changed. The stock market has plummeted and unemployment is up. Many of us, or people we know, have lost their jobs, and many others are simply concerned about the poor economy. In either case, people are worried about their future and families. In response, many of us begin to cut back. We eliminate or spend less on “luxuries.” We put off purchases and cut back on the very things that plant the seeds for wealth—generosity or giving!