Savings and Investments

A very important part of financial planning is saving and investing. With relatively smaller salaries and a higher cost of living in Israel, it is almost impossible to meet significant financial goals and retire comfortably if we rely solely on our paychecks and pension plans. For example, retirement is estimated to require 80-100% of our current working income, but social security and pensions will account for only 20-40% of this.

The only way to meet the shortfall is to regularly put away money for savings and investments. The compounding effect enables our money to grow exponentially, meaning that income generated from interest and dividends is reinvested to generate more income, which is subsequently reinvested, and so it continues. Thus, the earlier we establish a savings and investment portfolio, the disproportionately easier it is to reach a sufficient nest egg upon retirement or for any other financial objective. However, no two individuals are alike and a good portfolio should reflect a person’s age, risk tolerance, income, and future cash requirements.

It is important to work with a professional who takes the time to assemble the right mix of savings and investments to meet your financial objectives.


I initially met with Baruch Labinsky regarding my personal finances. He created a clear road map for me, helping to navigate the complex Israeli banking, insurance and tax system. After seeing great results, I had Baruch start assessing my corporate needs. As a business owner, I was stunned to learn how much more there was to do to streamline my company via his direction. Baruch is EXTREMELY knowledgeable, savvy and assertive and has helped me to grow my business dramatically. He has helped me not only save a ton of money but also structure and grow my business. Since hiring Baruch, my company profits have increased 100%. Coincidence? I don’t think so.

Fran Jakubowicz
Bet Shemesh

I have worked with Baruch Labinsky since mid-2007, just before I made aliyah with my wife and four kids. During that time, it is fair to say that Baruch has revolutionized our personal financial outlook and situation, whether related to the U.S. pension investments we left behind or the “managers insurance” and savings policies we began upon arrival in Israel. In addition, he has provided assistance on innumerable insurance, tax, and mortgage financing questions along the way. Baruch is responsive and competent, and can handle almost any financial-world question you put to him (or know who to refer you to in order to receive an answer). As important, Baruch is extremely careful to avoid conflicts of interest, which we have found to be a rare quality since making aliyah.

Joshua Ravitz
Yad Binyamin


Unfortunately, government social security and pension plans will account for only 20-40% of our required retirement income. The only way to meet the shortfall is by regularly putting aside money for additional savings and investments.
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.

For those approaching or already retired, the proper management of limited financial resources so they last will be critical. However, if your nest egg is small and you are no longer working, there are other ways to procure funds for savings and investment that can greatly improve your monthly fixed income. For example, consider downsizing your home to free up cash or selling altogether in favor of renting. Rent in Israel is relatively cheap at about 2.5-3% of the home value. If you sell a 2,500,000 home and invest the money at 5-6% you can enjoy an additional 6,000 NIS per month after paying rent! Creating a budget to help you understand and manage expenses is another way to free up some cash. Instead of spending the extra cash, take advantage of the compounding effect of savings and investments, even if for a short period of time. You’ll generate more income for yourself later on.

We only use publicly traded securities in our portfolios. We prefer trading 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 stocks and bonds. If you are American, Israeli ETFs are problematic for US tax reasons, and would therefore not be included in your portfolio.