secrets to surviving first years in israel - labinsky financial, dec-2013
TRANSCRIPT
Secrets to Surviving
Your First Years in
Israel
Baruch Labinsky MBA, TEP
Licensed by the Israel Securities Authority
Financial Planner/Investment Manager
December 2013
www.Labinsky.com
What is Financial Planning?
Not an event but a processParadigm shift
Creating a personalized roadmap
Analogy of airplane
Lifecycle process
Common Mistake #1
Continue financial life as
if living in former country
Easier in many ways
Currency issues
Matching of revenue and expenses
Lost Israeli opportunities (real estate)
Investing
Common Mistake #2
Lack of financial goals
Create your definition of successBoth short term and long term
goalsEmployment, retraining, hous
ing, languageAlign lifestyle to goals Financial success is implementing
goals
Common Mistake #3
Lack of understanding
the system
Unnecessary expenditures
Unrealistic expectations
Inability to plan
The Israeli System
Understand Israeli tax systemNo universal reporting requirement
Teum mas
Tax credits, women vs men
Donations
10 year tax “holiday” for olim
Fixed investment tax
The Israeli System #2
Bituach leumiWhen to start paying… or collecting
Income supplements
Maternity leave
Handicaps
Special exceptions committee
Pensions
The Israeli System #3
Investing
Through the banks or brokerage houses
Currency diversification
US tax issues – PFIC
Fees vary greatly
EMPLOYMENT BENEFITS
o Understand the Israeli employment benefits!
o Types of standard benefits – significant savings
o Long term retirement savings plans
o Bituach Menahalim
o Keren Pensia
o Keren Hishtalmut
o Self-employed business structuring options
Budgeting!!
Why critical in Israel?
Awareness
Solving financial problems
Improves control over resources
Prioritizing
Improves family communication
Goal tracking
Long term and unexpected
Most important tool you have!
General tips
Live within your budget
Research prices - internet, friends
Negotiate everything!
Buy used - janglo, groopbuy.co.il, ebay
Check your bills
Plan ahead
Cash is king
QUICK TIPS
Find a „guardian angel‟
Educate yourselfInvestigate oleh discounts
Research before committing
Accounts and policy information
Annual Statement of Net Worth
Monitoring your financial progress
Is the issue temporary or system
Easier to create reward system for an
enjoyable process
Importance of Tracking
Importance of Tracking
Importance of Tracking
Available in stores in Israel and abroad
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www.labinsky.com
972 (0)2 991 0029