It is a Chanukah custom for Jews to eat fried foods to commemorate the miracle of the oil in the Beit HaMikdash lasting eight days instead of just one. This is not just a delicious, trendy minhag that should be taken lightly. In fact, in the 12th century, Rambam relayed that his father, Rabbi Maimon ben Yosef, wrote to him that “one must not make light of the custom of eating sofganim [fritters] on Chanukah. It is a custom of the Kadmonim (the ancient ones).”
I personally take this custom quite seriously as well. For the past few years, I have sampled sufganiyot from a wide variety of bakeries around the New York area. Many Jews are equally serious about this minhag, with the sufganiyot becoming more elaborate and decadent each year, and their prices increasing along with their creativity. Our ancestors in the alte heym would have undoubtedly been blown away by the countless flavors, from salted caramel and lotus to red velvet, cookies & cream, and more.
However, I must admit that while I admired all the innovation in this food group (are sufganiyot their own food group?), last year I became disenchanted with these fancy pastries. It was just too much! Spending $10 or more on a donut that was so rich, heavy, and caloric just seemed excessive. I confessed to my wife by the end of yuntif that “next year, I just want to stick to plain, classic jelly donuts!”
Sufganiyot are just the tip of the iceberg for many frum families when it comes to going overboard on Chanukah. A combination of presents every night, excessive parties with too much food, and elaborate décor have become a distraction. People forget the holiday is really about recognizing the triumph of Jewish identity and religious freedom over oppression. This should be especially relevant today given a rise in antisemitism and baseless hatred against the State of Israel. That theme is what we should remember as we light the menorah and eat the symbolically oily foods, but all the overindulgence seems to take away from that important message.
The trend toward extravagance, ostentatiousness, and high prices is also relevant in the investment world. I struggle against it with clients. I’m advising them to stick to a sensible investment program, while they are lured by approaches that seem more exciting. The appeal to participate in flashy and opaque “opportunities” is something that is prevalent in the frum world, and results in major financial losses every year.
Everybody has a friend who can get them “access” to a real estate/private credit/cash advance/hedge fund/private equity “deal” at a “family and friends discount.” These schemes are all fundamentally the same. A naïve person is promised “mid-teen” returns with minimal risk, and most inevitably lead to big losses.
As I say often in my writing, videos, podcasts, and while working with clients: You don’t need to do anything fancy to achieve your financial goals. You only need to:
- Stick with plain vanilla boring investments like stocks and bonds.
- Use mutual funds or ETFs to get this exposure.
- Stay the course over the long-term.
Remember, you can accomplish everything you want in life, and amass a vast sum of money, by sticking with the above process and avoiding the more exciting “opportunities” that plague our communities. As economist Paul Samuelson once said: “Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” If you are bored by your investment strategy, chances are that you are on the right track.
The beauty in both sensible investing and celebrating Chanukah is that the best course of action is easily achievable by the masses. A $2 fresh jelly donut and lighting the menorah are the optimal ways to recognize the miracles of Chanukah. The $10 sufganiyah, presents every night, and decked out parties are only distractions from what is actually important. Similarly, a boring ETF or mutual fund is all you need to achieve your financial goals and grow wealth. The other vehicles, like real estate syndications, private credit, and hedge funds, may be more fun to schmooze about with friends at the kiddush club, but will likely not help you achieve your goals.
During this Chanukah, let’s recommit to celebrating light over darkness (transparency over opaqueness), simplicity over complexity, boring over exciting, and modesty over flashiness. Embracing these foundational principles will lead to hiddur mitzvah as well as financial success.