An article about Christian principles and financial success.

First Published Fall 1992

This article is reprinted from my previous client newsletter and is republished by request and because it ties in with this issue of our newsletter.

For years I was troubled by a passage in the bible that hampered my career. The passage is in the New Testament, in the gospel of Mark, Chapter 10, Verses 23 26. It is as follows: " How hard it is for those who have riches to enter the kingdom of God! It is easier for a camel to pass through the eye of a needle than for a rich man to enter the kingdom of God." It was impossible for a camel to go through an eye in a needle. How could a rich person have any hope of entering Heaven? Why was I working so hard to give my family the nicer things in life, if it was to be my downfall? I could not get around this chapter and as a result it caused me a lot of concern and a loss of direction.

With a Catholic upbringing and years at boarding school, we learned to respect the power of God. My mother was French Canadian and the practice in those days was that the first-born belonged to the church and I was the first-born. Being groomed for the priesthood did not seem like a bad direction with this upbringing. Everything was fine until I learned about girls, which is another story, so that was the end of that career path. I was always a pretty hard worker and as a result usually got ahead very quickly, which usually brought with it financial rewards. I started my own insurance and financial business in 1965 and because we were brought up to be honest and work hard, the business became very successful in a few short years. The more prosperous the firm was, the more guilt I felt about ever getting to Heaven. I eventually sold the business in Toronto and moved the family out West in 1973 to make a fresh start and not to concentrate so much on wealth accumulation.

The problem of the rich man entering through the eye of the needle continued to taunt me in B.C. as I started back in business again. Finally, in 1980 as I was discussing this passage of the Bible with a Captain of the Salvation Army at a party, the answer was finally explained to me. He said that the needle referred to the entrance of the walled cities in that part of the world in ancient times. Not to a “sewing needle” as I had thought! The walls were designed to protect against attacks by their enemies riding on camels. The entranceways were designed like an inverted needle, which required the camel driver to dismount, have his camel crouch down, and almost crawl through the needle eye. It was impossible to enter without getting off of the camel. It was difficult to pass through, but not impossible. Being forever a skeptic, I had to check out this walled city theory for myself. It did not take long to refer to encyclopedias, etc. to confirm this. In fact, there are still remnants of these walls still standing today in the Middle East and in Europe.

What a revelation this was to me. Finally, I understood! It is harder for a rich man to enter the kingdom of heaven because wealth could be used for things that could lead you astray. Difficult, but not impossible! But why was it difficult for a rich man as apposed to a poor man? There is a saying that money cannot buy happiness, but it will buy the next best thing. With money, comes the ability to afford things, which are not in our own long-term best interest or that might steer us off the straight and narrow. It also allows us to be isolated in our living conditions from the tragedy and misery in the world around us. However, prosperity can give you the means with which to help others. Mother Theresa of Calcutta, a living Saint widely known in our lifetime, says it best ‑"You must give until it hurts". There is no shortage of causes. You need only look at the news most evenings to see where the need is. The difficult part is finding a worthy organization that puts the money where it was intended and not in building a bureaucracy, or extending their promotional programme. However, there are many good Charities.

Charity also begins at home. I think nowadays our kids need a lot more help than we did to get started. My first house in 1961 cost less than three years income to buy. Today it takes over six years income to buy a similar home. There are a number of financial planning arrangements where the children can enjoy part of their inheritance today and you can get to see them enjoy it. A popular one is to assist them getting into their first home. By loaning them part of the down payment by way of a second mortgage with little or no payments, you can help them get their first home much earlier than if they had to do it all on their own.

There are a number of financial products and arrangements designed to assist people in achieving their charitable giving goals. With tax relief on the donation it makes it possible to do far more for your favorite charity than you could ever achieve if it was not tax deductible. You can have a charitable tax deduction up to 20% (Now 75%) of your net income. If your contribution cannot be fully claimed in the year, you are allowed to carry forward the deduction up to five years. Gifts to Canada or a province are not subject to the 20% limit. Property, Art, etc. can also be donated and deductible if properly certified.

A little know option is to donate to a charity monies, or property and in return the donor receives an annual income for a specified number of years, or for life. The donor gets an immediate tax deduction based on annuity actuarial tables and an annual income. The charity gets the funds now, buys you an annuity to guarantee your income and has the balance for their charitable work. Another way to give to a charity far more than you normally could, is to purchase life insurance whereby the charity is both the owner and the beneficiary. You pay the annual premiums and the charity gives you a tax receipt each year equal to the life insurance premiums. On your death the charity gets the death benefit, which is a far greater amount than the sum of the premiums paid.

So, at long last I'm enjoying my success. I am able to do more for my family and help others that are not so fortunate, because, "There but for the grace of God go l." Saint Peter! Open that gate. My camel's coming through that damn eye of the needle!

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