Asset Management
At Labinsky Financial we believe that a correctly structured investment portfolio is the best way to ensure long term financial security. We will look at your stage in life, risk tolerance, and the timing of future cash needs. In general, younger people are better served with higher growth, and therefore riskier securities, since they will not have an immediate need for cash and can wait out any market downturns.
On the other hand, for someone approaching retirement age, stable low growth investments with predictable returns offer peace of mind that enough cash will be available as draw downs for retirement are made.
Watch this interview with Baruch Labinsky and Aaron Katsman as Baruch explains the ins and outs of investing.
This interview with Baruch Labinsky and Yosefa Huber delves into the thought process behind investment, and the tax ramifications for US citizens.
This interview with Baruch Labinsky and Yosefa Huber delves into the thought process behind investment, and the tax ramifications for US citizens.
We only use publicly traded securities for your investment portfolio, which according to your preference, can be managed in Israel and/or the US. We generally trade in funds that contain a large number of different securities, and are therefore less volatile. In particular, we favor the use of Exchange Traded Funds(ETFs), which unlike mutual funds, can be purchased or sold on a stock exchange the same way regular securities can, making them more cost effective and liquid.
ETFs typically track a particular index, sector, commodity, or other asset class. We use a combination of broad index and sector Israeli and American ETFs along with some actively managed individual stocks and bonds. If you are American, Israeli ETFs are problematic for US tax reasons, and would therefore not be included in your portfolio.
The Process
An initial meeting to hear and understand your unique situation and needs.
An analysis of your current net worth, which will provide the basis for planning your portfolio.
A review of your current investments to determine if they are organized in the most efficient way possible. This includes a review of savings plans, retirement programs, and insurance plans. If necessary, some of these will be restructured.
An evaluation of your financial goals leading to a portfolio of investments that reflects your risk tolerance level and liquidity requirements.
Regular meetings to review , and if necessary, make adjustments to your portfolio so that it better reflects current economic conditions and your situation/goals.
Testimonials
I’ve just finished a Zoom meeting with Baruch Labinsky and I feel SOOOOO relieved! Right away, I saw and felt he was “the one” I needed to sort out my financial issues and manage my portfolio. He put me at ease immediately, with his calm demeanor and warm smile. Even though I have never been in debt, work hard and have managed to save as well, I am, to be honest, illiterate about stocks, bonds, and savings, and don’t see that changing any time soon! I am looking forward to our face to face meeting so we can start the ball rolling.
Linda Kuras
Petach Tikva
One of the best decisions we’ve made since moving to Israel is hiring Baruch Labinsky as our financial advisor and investment manager. He really helped us look at the big picture in terms of our financial objectives, long-term and short-term, assessing our desired level of risk, and worked with us to create a detailed plan and portfolio to meet our needs. Baruch has been there for us any time we’ve had a question, and we feel secure with him as much in his integrity and character as in his financial expertise. He has our highest recommendation.
David Bar-Cohn
FAQs
What type of returns can I expect from my investment portfolio?
When it comes to investing, the usual rule is that returns are correlated with risk. That is, the riskier the investment, the higher are the expected returns. On the downside, the riskier the investment, the higher are its chances of failure. High risk and low risk investments play an important role in a diversified portfolio, however, risk levels should not only match the risk tolerance of the investor, but also his stage of life and future cash requirements. At Labinsky Financial, we take the time to understand you and put together an investment portfolio that best suits your needs.
What types of investments do you deal with?
Your investment portfolio will only consist of publicly traded securities, primarily traded on US exchanges and the Tel Aviv Stock Exchange. In special instances, or at the client’s request, we will include securities from other foreign exchanges. Portfolios usually include a mix of stocks and bonds.
Are all your investments in Israel?
Labinsky Financial manages securities traded primarily on US exchanges or the Tel Aviv Stock Exchange. Occasionally, we will trade on other foreign exchanges but usually only upon a client’s request. In addition, we offer private investments to qualified clients that are mostly related to real estate in the US market.
How will I understand my investments if I don't speak Hebrew?
Our team of portfolio managers is fluent in English. After initial meetings to understand your financial goals, your advisor will put together an investment portfolio suited to your needs. At least once a year your advisor will arrange a meeting by phone, online, or in person to review your portfolio, and if necessary, make any changes. In addition, a record of all your investments and trades is available in English. You can also contact us during office hours and we will gladly answer any questions.
What is your investment philosophy?
We will look at your stage in life, risk tolerance, and the timing of future cash needs. In general, younger people are better served with higher growth, and therefore riskier securities since they will not have an immediate need for cash and can wait out any market downturns. On the other hand, for someone approaching retirement age, stable low growth investments with predictable returns offer peace of mind that enough cash will be available as drawdowns for retirement are made. We only use publicly traded securities in our investment portfolios. We prefer trading in funds, which contain a large number of different securities, and therefore less volatility. In particular, we favor the use of Exchange Traded Funds(ETFs), which unlike mutual funds, can be purchased or sold on a stock exchange the same way regular securities can, making them more cost effective and liquid. ETFs typically track a particular index, sector, commodity, or other asset class. We use a combination of broad index and sector Israeli and American ETFs along with some actively managed stocks and bonds. If you are American, Israeli ETFs are problematic for US tax reasons, so they would not be included in your portfolio.
Are you licensed as Portfolio Managers or stockbrokers?
Every Portfolio Manager (menahel tik) at Labinsky Financial is licensed by the Israel Securities Authority. In exercising trades on behalf of clients (either Israeli or foreign securities), we use the services of licensed brokerage firms in Israel. We are not stockbrokers and you do not need to open a brokerage account with us. In Israel, securities trades are settled directly within your bank account. Through a Limited Power of Attorney Agreement, you grant us permission to buy and sell securities at our discretion, within your account. Clients wishing to maintain a portion or all of their portfolio in the US (usually for tax reasons), can do so by opening a US brokerage account. We can easily arrange to manage your portfolio with your brokerage company.
Where will my money be held before and after a trade?
The concept of having a brokerage account actually does not exist in Israel in the way it does in the US. Even though we manage the buying and selling of securities for you, the funds are settled directly within your Israeli bank account. Those wishing to maintain a portion or all of their portfolio in the US (usually for tax reasons), can do so by opening a US brokerage account. In either case, these accounts are entirely owned and controlled by you. Through a Limited Power of Attorney Agreement, you grant us the right to buy and sell securities at our discretion.
Do you offer securities through FINRA or SIPC?
If you are holding securities in the US for us to manage, we will do so through your US brokerage account, which is regulated by FINRA and covered by SIPC. For securities traded in Israel and therefore settled through your Israeli bank account, FINRA regulation and SIPC coverage do not apply.
How up to date are you on investment tax issues for dual citizens, and specifically for US dual citizens?
We are well versed in the tax issues facing our clients with dual citizenship and base our advice on that knowledge. That said, we are not accountants and when relevant, will advise clients to seek guidance for their particular situation from a qualified accountant.
Do you receive any 3rd party compensation for recommending specific investments?
Currently, we do not receive any compensation for recommending the publicly traded securities that comprise the investment portfolios under our management. Should there be any changes to the contrary, full disclosure will be made to our clients in advance. In the case of alternative investments, which are not traded publicly and only available to qualified investors, we may receive 3rd party compensation on the closure of a deal, or alternatively, we may charge a placement fee to the client. In such an event, the relevant fees are always disclosed during the period of advisement.
How are your fees calculated?
Financial planning consultations are charged on an hourly basis. For investment management, fees are charged as a percentage of the portfolio market value, which is calculated based on a monthly average. In general, we charge between 0.75- 1% +VAT per year. The exact amount depends on factors specific to your situation. Labinsky Financial charges no other fees or commissions. However, since the buying and selling of securities is settled directly within your bank account (unless you choose to maintain a portfolio in the US using a US brokerage account), your bank may charge custodial fees (דמי שמירה) and transaction fees. We have negotiated preferential transaction fees with most of the banks, and a charge of 0.1% of the value of the transaction is reasonable. Fees for foreign listed securities are usually higher, approximately 0.15% of the value of the transaction. Custodial fees vary depending on the bank. For example, some banks give us an exemption on custodial fees for our clients’ accounts with over 1 million shekels. It is important to negotiate with your bank and/or compare different banks. Don’t be afraid to play one offer against another.