Tel Aviv brokers.
(photo credit: REUTERS)
As the holiday of Pessah is quickly approaching, cleaning preparations are in
full force. While we are knee deep in cleaning solutions trying to get that
little, elusive piece of chametz, we are often in for a pleasant
surprise. In our home we usually end up finding loose change that adds up to
tens of shekels. The other day I actually found a CD of a video that I starred
in along with a herd of cows! But that’s for another column.
Last week I
received three calls, each one telling me how when they were cleaning for
Pessah, they were going through some drawers and they found some kind of
investment account statement, detailing the value of an account that they had
long since forgotten about.
After some questions, it turns out that each
caller had moved to Israel over the past few years and they had what they
thought was a small amount of money in an account in the old country, and they
just decided to leave it and eventually they forgot about it.Get on the
There is a common perception that one needs to have a lot of money to
work with a financial adviser. People often tell me they just assume financial
advisers only work with clients who have hundreds of thousands of dollars, and
that their $25,000 to $50,000 just isn’t enough to bother with.
there maybe some advisers who specialize in high-net-worth clients, many
advisers work with smaller accounts. It’s important to make a few calls and find
an adviser who can help you out in your situation. The potential loss of not
taking care of your investments over the long term can be staggering. You can
literally be talking about leaving tens of thousands of dollars on the table
because of the inaction.
Don’t think that just because you have $50,000
no one will talk to you.
It’s simply not true.Make ‘Seder’
Everyone needs to start somewhere.
Your $50,000 isn’t going to double or
triple magically. You need to create a financial plan and start understanding
what your short- and long-term needs and goals are. You can speak to a financial
adviser to help you define those goals and needs.
advisers who specialize in high-net-worth clients also have financial-planning
consulting businesses as well, where they may charge an hourly fee to help you
create a plan. When creating the long-term plan with your adviser, it’s
important to also take into account future expenses.
For example, the
purchase of a car in five years, marrying off children in eight, 10 and 12 years
is all relevant information necessary for the adviser to give you an accurate
picture of what you need to do for you to be able to meet these future
expenses.Start building wealth
Many individuals feel they need not even
bother to start saving while living in Israel because conventional wisdom says
that it’s a waste of time. I beg to differ. Let’s say you have $25,000 to
$50,000 and in addition you have children.
If you are an American
citizen, it’s very important to apply for the child tax credit. In this scenario
you could be the recipient of thousands of dollars each year.
I like to
encourage investors to take that child tax credit and invest it every year. A
few thousands dollars every year may not seem like the way to grow your wealth,
but taken with your starting sum, investing a few thousand dollars every year
for 10 to 15 years will leave you potentially with a couple hundred thousand
Happy cleaning and hag kasher
email@example.com Aaron Katsman is a licensed
financial adviser in Israel and the United States who helps people with US