Advanced Financial Solutions
Your money should work for you - not the other way around. Discover the advanced financial solutions that will help you build a strong and stable financial future.
My Financial Solutions
Long-term savings vehicles tailored to the Israeli market — reviewed against your goals, risk tolerance and time horizon
Investment Provident Fund
Market-based savings with a choice of investment tracks. You can withdraw at any time, subject to tax on gains and processing times. Returns are not guaranteed.
- Choose a track for your goals and risk tolerance
- Full or partial withdrawal at any time, subject to tax
- Potential tax-exempt annuity from age 60, subject to conditions
- Annual deposit limit; no tax relief on deposits
Savings Policies
Savings managed by large institutional bodies across several investment tracks. Returns are market-dependent and track selection should match the goal and time horizon.
- Several risk tracks to choose from
- Flexible terms, subject to the policy
- Track adaptation as the family situation changes
- Variety of investment tracks
Professional Development Fund
Medium-term savings with potential tax benefits up to statutory ceilings, professionally managed investment tracks, and clear rules for self-employed and employees.
- Capital gains tax benefit up to the ceiling, subject to the law
- Recognised expense for freelancers within limits
- Liquid after 6 years (3 for approved uses)
- Track-based investment
The meaning is clear: money works for you, not against you
How Do I Help You?
- Comprehensive Financial Analysis
- Selecting Suitable Products
- Ongoing Management and Monitoring
- Tax Benefits Optimization
When Should You Start?
- Now!
- With Every Life Change
- When You Have Money in the Bank
- Before Retirement
How do you choose a suitable savings product?
Before choosing a product, define what the money is for, when you will need it and how much volatility you can accept. Compare terms and total costs, and keep money for near-term expenses accessible.
Goal and time horizon
An expense next year and retirement savings call for different products and investment choices.
Risk and volatility
Market investments can rise or fall. Consider your ability to absorb a loss as well as potential gains.
Access to your money
Check withdrawal dates, processing times and the consequences of an early exit.
Costs and tax
Compare management fees, other costs and tax rules for the product and your circumstances.
Bank deposit or market-based savings?
Bank deposit
- Interest or return
- Interest may be fixed or variable under the agreement and depends on the amount and term. A current-account balance is not the same as a deposit.
- Risk
- Consider the bank’s contractual obligation, indexation and inflation’s effect on purchasing power.
- Liquidity
- Withdrawal dates and exit windows follow the agreement. Early withdrawal may be restricted or carry a cost.
- Costs and tax
- Check exit terms and the tax treatment of interest for the deposit type and saver.
Savings invested in capital markets
- Interest or return
- Returns depend on the investment track and market, may be negative and are not guaranteed. Past performance does not guarantee future results.
- Risk
- The value may fall, including when you need the money. Risk varies between investment tracks.
- Liquidity
- Withdrawal rules differ between investment provident funds, savings policies and study funds. Liquidity does not guarantee preservation of your capital.
- Costs and tax
- Compare management fees, investment expenses and tax rules. Tax benefits depend on the product and eligibility conditions.
This is a general comparison; check your offer and product documents for the applicable terms. For current deposit-rate comparisons: Bank of Israel comparison tool
Tax Benefits in Israel
Capital Gains Tax Exemption
In a study fund, for example, gains on qualifying contributions may be tax-exempt when withdrawal conditions are met. Not every savings product is exempt.
Subject to contribution limits and withdrawal conditions
Recognized Expense for Freelancers
Part of a self-employed person’s study-fund contributions may be deductible from taxable income, within the limits for the relevant tax year.
The saving depends on income and the marginal tax rate
Tax-Free Pension
From age 60, transferring an investment provident fund to a pension-paying product may allow a tax-exempt pension, subject to the law and product terms.
A lump-sum withdrawal does not automatically receive this exemption
Choose savings around your life
Review your goal, time horizon, risk and costs before choosing a product.
Frequently Asked Questions About Financial Solutions
Find answers to the most common questions
What's the advantage of investment funds (Gemel) over bank deposits?
An investment provident fund is exposed to capital markets, so its value can rise or fall. A bank deposit follows the interest and terms agreed with the bank. Compare risk, liquidity, fees and tax; higher returns from the fund are not guaranteed.
What is a Study Fund and why is it considered the most worthwhile savings?
Study Funds enjoy full capital gains tax exemption (up to a ceiling), making them the most worthwhile savings in Israel. For self-employed - deposits are tax-deductible. For employees - part of employment conditions. After 6 years (or 3 for self-employed), money can be withdrawn tax-free.
Should I transfer my pension to another company?
It depends on several factors: management fees, returns, insurance coverage, and service. Sometimes you can get better terms by staying with the same company through negotiation. It's recommended to consult with an agent who will review your portfolio and present an objective comparison.
What are management fees and why are they so important?
Management fees are the commissions charged by the body managing your money. They consist of fees from accumulation (from the accumulated amount) and from deposits. A 0.5% difference in management fees can amount to tens of thousands of shekels over the years. That's why negotiating and comparing is crucial.
Are savings policies suitable for children too?
Yes, savings policies are an excellent way to save for children long-term - education, army service, first apartment. The advantages include professional money management, flexibility in investment tracks, and adaptation to age and savings goals.
The information provided is general only and does not constitute professional advice or a substitute for consultation with a licensed insurance agent. Contact me for personalized guidance