Use your investment profits to help people in Ukraine

In the days of Russia invasion of Ukraine, many people have tried to predict what gas prices or interest rates or your investments will make.

There is no harm or shame in this, incorrect at least. Self-preservation – and its serving instinct, the preservation of wealth – is an understandable urge. Prognostics trying to settle down on people and markets are reasonable, although forecasters often misunderstood.

But as with any military aggression capable of disrupting global finance, one question immediately arises: Who is likely to need immediate help?

Most likely, it was the babies that the hospital staff had to move to the basements and who were taking shelter in the subway station or run away from their home. Many of those adults didn’t have a 401(k) in the first place. Even those who have the fewest of their neighbors can lose more than they ever thought possible.

If you’re reading this, you’re probably not one of them. We are entering Year 3 of a global pandemic, but you are still alive, even if you may have lost those close to you. The job market is very strong for those who want to work and feel safe doing it.

If you own a large, broad basket of US stocks, they have risen about 40% in the last two years, even after recent times. adjusted. If you own a house, those, that price at least 20 percent increase – more than $50,000 for the average person.

This is extraordinary. Your net worth could also be higher amid all the disease deaths, and it could stay that way as Russia’s invasion of Ukraine threatens to wreak havoc on global markets.

This is not a call to celebration but rather the surprise, briefly, that this could be your reality. And it is true that the ability to dig deep to help others depends in part on preserving what you have.

My colleague Jeff Sommer note that the stock market recorded large gains in the medium term after the bombing of Pearl Harbor and the US invasion of Iraq. Investors also did well during the Cold War years, even as millions suffered.

For most people, it doesn’t feel good to try to profit directly from these types of events, but just being patient is not moral failure.

On Thursday, when the stock market plummeted and then rallied, Michael Zawadiwskyi, a Ukrainian-American financial planner, said he has talked to a few clients that they should sell different investments to protect themselves from possible losses. About half of his clients share his roots.

But he doesn’t get as many calls as you might expect. Shared heritage aside, he and his clients follow common principles of sound financial planning. They have money in investments, some to use now and some to use later. They are cautious about risk and diversification. They don’t deviate from the plan unless radical changes in their lives require it.

And he knows his history. “I don’t think war slows down the economy in the long run,” Zawadiwskyi said.

That didn’t stop him from believing the photos of tanks rolling through Ukraine and wondering what would happen to the country’s citizens. He believes most of them are unpacking, especially those in the western part of the country, where his family has roots.

“Where are they going?” Zawadiwskyi, a first-generation American, is part of a tight-knit Ukrainian-American community in northern New Jersey. “I don’t even want to imagine what that would be like. I think they still intend to fight for what they have there.”

If he and his clients are now more concerned with people than their investment prospects, then you should take a similar stance. After all, there’s one thing we can predict with reasonable certainty in the short term: People will need help.

If you’ve lost little – and certainly if you’ve made a lot – come back your family’s history has been helped. Even if your ancestors were never officially refugees, it may be difficult for them to move from one country to another.

It’s an old story, with new main characters every year. For decades, International Refugee was focused on public policy and other initiatives that can defuse their struggles. HIAS is another solid player in the field send money arrive Right to be protected, its Ukrainian counterpart. Other established nonprofits may mobilize if the situation deteriorates.

A few minibuses, how to help web sites doing rounds, as well as suggest on social networks. If recent history is any guide, there will be tools and platforms that you can use to receive money directly, electronically, to individuals in need. Most of these efforts will be successful and worthwhile. Inevitable, cheat will also appear, so be on the lookout and ask questions.

And if it helps, don’t forget that there is often a direct connection between your interests and your good will.

You can donate Stocks are appreciated to many charities and avoid paying capital gains tax on those winnings. You can transfer a bunch of securities into a donor-advised fund and use it over time while still collecting any charitable tax deductions you may be eligible for. And if you lose your investment, deduct these if you can and imagine any tax savings as an allowance for generous donations.

Maybe the invasion will affect your retirement or the price to fill your SUV, and maybe it won’t. But others are suffering a lot right now. Investing in them is one of the best ways to answer the question of what you can do with Ukraine in the immediate future.

https://www.nytimes.com/2022/02/26/your-money/russia-ukraine-investments-stocks.html Use your investment profits to help people in Ukraine

Fry Electronics Team

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