1. 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

3. What is Financial Planning?
Not
an event but a process
Paradigm shift
 Creating a personalized roadmap
 Analogy of airplane
 Lifecycle process


4. 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

5. Common Mistake #2
Lack of financial goals
 Create your definition of success
 Both short term and long term
goals
Employment,
retraining, hous
ing, language
 Align lifestyle to goals
 Financial success is implementing
goals

6. Common Mistake #3
Lack of understanding
the system



Unnecessary expenditures
Unrealistic expectations
Inability to plan

7. The Israeli System

Understand Israeli tax system
No universal reporting requirement
 Teum mas
 Tax credits, women vs men
 Donations
 10 year tax “holiday” for olim
 Fixed investment tax


8. The Israeli System #2

Bituach leumi
When to start paying… or collecting
 Income supplements
 Maternity leave
 Handicaps
 Special exceptions committee
 Pensions


9. The Israeli System #3

Investing

Through the banks or brokerage
houses

Currency diversification

US tax issues – PFIC

Fees vary greatly

10. EMPLOYMENT BENEFITS
o
Understand the Israeli employment benefits!
o
o
Long term retirement savings plans
o
o
o
o
Types of standard benefits – significant savings
Bituach Menahalim
Keren Pensia
Keren Hishtalmut
Self-employed business structuring options

11. 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!

12. 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


13. QUICK TIPS
Find a „guardian angel‟
 Educate yourself

Investigate oleh discounts
 Research before committing


Accounts and policy information

14. Annual Statement of Net Worth
 Monitoring
your financial progress
 Is the issue temporary or system
 Easier to create reward system for an
enjoyable process

15. Importance of Tracking

16. Importance of Tracking

17. Importance of Tracking

18. Available in stores in Israel and abroad

19. More information and mailing list signup
www.labinsky.com
972 (0)2 991 0029