Transcript
Auto-generated transcript. Not time-synced to the video.
Rabbi, do I have to donate my
investments?
uh if you're talking about giving mael
like giving 10%
uh mael then uh or if somebody gives but
uh when a person wants to get blessings
on uh on their money then the says as
the
says that if somebody gives 10% of their
income uh to its publicizing tra to its
Torah scholars to its kiru things like
that Then uh if they give 10% they're
assured that they're not going to lose
their money. They won't become poor. Uh
and if they give they're assured uh that
they will be uh become wealthy and so
much so that uh this is the only thing
that Hashem says to us clearly that
we're allowed to test them with this
test them with the
mas. So now uh as far as what you have
to give ma on you have to give ma on any
money that you're getting. So if you're
getting a salary from your job or if
you're a contractor, you're getting a
payments, you uh give 10% uh of of what
you got. Uh now, as far as expenses to
deduct, only deduct the cost of doing
business. Meaning that if it's your
income, let's say you make uh $2,000 a
month, uh then uh and it didn't cost you
any money to make the $2,000. All you
had to do is show up to work and you got
the $2,000 then you have to give 10% off
the $2,000. Now if uh they deducted
taxes out of it and after taxes you only
had a,000 left and you give 200 out of
the thousand whatever you got in your
hand. But if let's say you sold
something, let's say you sold a car uh
for for uh for
$2,000. Now obviously that $2,000 is not
all profit because the car cost you
something. So, let's say the car cost
you $1,500, which means you only have
$500 out of the $2,000 that's really
profit. So, now the 10% has to come out
of the $500 profit. The same concept
goes with stocks or bonds or real
estate. If you sell a piece of real
estate or you sell a piece of a stock
for a profit, you have to give m
uh you have to give 10% of uh the money
that you've profited. But you only have
to give uh that 10% uh that male after
you've sold it, not while you hold it.
So let's say for example, you have a
stock that you bought for a dollar and
the stock miraculously went to
$100. So you have a lot of profit and
you bought I don't know a bunch of
shares and you have I don't know $100
million in profits.
Now, you don't have to give mas until
you sell it because so long as you own
it, it could always fluctuate in price
and it could potentially go back down to
one. So, you don't have to sell it so
long as you own it. But the moment you
sell it, you have to give m if you want
to follow the Tua, you want to get the
blessing.
What about
your Oh, so whether the money that you
have is in a regular uh account, I guess
you stock trader, uh whether it's in a
in a regular account or it's in a
retirement account, you need to give
male on it. It doesn't make a difference
where the money is. Now, I understand
that the uh you know, if somebody, let's
say, for example, bought a piece of
property uh for for, you know, for
$100,000 and they sold it for
$500,000, that's a $400,000 profit. They
have to give MV off of that. The same
concept goes with you invest in stocks.
You invest $100,000, you sold it for uh
$500,000, you have to give MV off of
that uh off of that uh money. The
problem is that uh I guess the point of
your question is what if that money that
you have profits is in some form of
retirement account which means that you
know if you take the money out of the
retirement account then you are
uh then you are
um going to be subject to taxes because
you took money out of some 401k or some
uh uh some uh uh IRA account. Uh so you
could do one of two things. Uh one, you
could uh take it out of a different
account that's not an IRA account.
Meaning you have the uh profits. Let's
say you have uh uh $100,000 in profits
that uh you got in the uh in your
retirement account and you sold
everything. So you locked in the
$100,000 profit. Uh so you now if you
give him a sale, you give 10%. That's
$10,000 you give a sale. So that $10,000
you can take it out of a regular account
that you have. I'm sure you have some
type of money in regular accounts
uh that
um that are uh that you have $10,000
in and uh you give them asset from that
account. That's one way to do it. Uh
another way to do it is uh is to
actually take it out of the retirement
account. Take it out of the retirement
account. then yes, you don't have to
take all the money out of the retirement
account, but you take the money out of
the retirement account and uh pay the
penalty. Now, you don't necessarily need
to do that. There's other options. Uh
so, I mean, you could also do something
where let's say, for example, you have
$100,000 in profit and you want to give
$10,000 in Mar, but you currently don't
have $10,000 in your uh checking account
because you're waiting for some this and
you're waiting for some that. You just
don't have it. So you could have a
IOU note to yourself that as soon as you
get the money you'll give it. So let's
say you don't have it now but you expect
to get it in let's say two months from
now. So as soon as you get the money in
two months from now you give the at that
point. Try not to extend it too much.
Usually the best thing to do is to uh is
to give it uh the same year. Uh not let
pass without giving uh that masel. Uh
but needless to say, the sooner you give
the maser, the better for you because
that maser that you give, the moment you
give it, you're in essence fueling the
next blessing. Meaning that $100,000
that you have has to be invested again.
You want it to work out also the same
way the first $100,000. So you obviously
you want the blessing as soon as
possible. So, I understand that, you
know, there's some people that ask me
about, you know, they want to donate,
but they have their money in uh, you
know, offshore or they have their money
in Bitcoin or they have their money in
all types of things. Uh, you know,
there's different ways to uh there's
different ways to donate. Uh, but a
person can certainly certainly uh
donate. um you know you can even you
know with with uh with our organization
we have a way now to now to accept uh
stock to accept
um Bitcoin to accept cryptocurrency. So
you can donate even the asset itself
which sometimes is a uh major benefit
for people uh financially and tax- wise.
Uh but point being is is that for all
intents and purposes of your question as
far as whether you have to give money
out of profits you're making in your
retirement account the answer is yes
once you've locked in the profits means
meaning once you you bought something
you sold
it that means at that you know you have
to give uh money from the you have to
give m from that profit now in your case
since you're I guess a trader of some
kind no you just like to trade you're
not a trader okay So in your case that
since uh you trade
uh then if you're more than let's say
the average long-term investor where
you're not you know you don't buy and
hold for a few years you usually you
know buy and sell
regularly for you to give m out of every
single trade will become very cumbersome
difficult and sometimes even detrimental
to the strategy of investing that you
have because usually capital is uh
trading is int is is capital intensive
meaning the more capital you have the
more uh um uh ability you have to to do
what you do. So if you're an active
trader uh then what you can do instead
of what I just said which is to give
male once you've sold
um you can actually give masel let's say
every so often whether it's a uh uh
every few months or even once a year um
I recommend to do it you know every few
months and not once a year just simply
because it's becomes more difficult to
give masa once the amount becomes bigger
uh the works harder. But the point is is
that if you give the masel uh let's say
once a year or every few months then
that means you can tally all the trades
because I'm sure you have some you know
winning trades but you also have some
losing trades. So you could calculate
the
total of those trades since you're an
active trader uh at at that time during
the year uh and then you know the ones
that you've uh already locked in gains
or losses on and then give m off of that
dollar amount
um and yes even that is same thing in
regards to uh it doesn't matter whether
it's a uh IRA or 401k or a regular
account or partnership doesn't make a
you give
mas no you don't have to necessarily
give mas specifically from that account
just like I said you know you could
collect the profit in the retirement
account but pay the uh the maser from a
regular account doesn't make a
difference where you pay the masel which
is the point is spiritually speaking
it's as as long as you pay the masa you
give the masel you it's that's it's a
different type of investment you have
the investment of stocks and real estate
And whatever people invest in today and
then you have investment in you know
your spirituality which is publicizing
and supporting that's a different type
of
uh but where you give it from doesn't
make a difference. So you can keep all
your money in that account and give it
from a different account. You could take
everything from that account give
another one doesn't make a difference.
We are meant to be a light unto the
nations not to follow their misguided
practices. Remember, every Jew has to
remember that he's a Jew and she's a
Jew. We don't celebrate non-Jewish
holidays, even if they seem
harmless. It's a zil
disrespect to the Torah and could lead
to chalashem, desecration of God's name.
Stick to our holy Torah in our own
holidays. That's the path of a true Jew.