clear financial goals
TRANSCRIPT
Common mistakes that expatriates
make - and how to avoid them
Part 2: Define clear financial goals
Baruch Labinsky MBA, TEP
Licensed by the Israel Securities Authority
Financial Planner/Investment Manager
October 2013
www.Labinsky.com
Most people lack clear financial goals.
However, when coming on aliyah it is
particularly crucial to recognize your
goals.
Be aware of the many changes ahead eg
salary levels, cost of living etc.
If you are still working, calculate how to
support yourself/family.
If you are a retiree, think how to make your
money last.
Think out of the box.
Set clear goals for what is important to you.
Prioritize your expenses.
The Israeli tax system is different to that of your
country of origin. Just a few examples:
Israel has a graduated progressive tax system on
earned income, whereas investment income is
taxed at a flat rate.
New trust legislation means trust income is fully
taxable. Consult a professional to ensure your
finances are set up adequately to meet new
restrictions.
Women are taxed differently to men.
Employees have no reporting obligation in Israel.
You must ensure that your salary incorporates all
your tax benefits.
Ensure you have correct financial planning
strategy in place.
Too many people focus on short-term
financial goals, and aim ‘just’ to get
through the month.
Put together a budget to ensure that your
future needs are also covered.
Ensure that your home country insurance
is relevant in Israel. (Whole life insurance
does not exist in Israel.)
Ensure your will is compliant with Israeli
law.
Ensure you have a Net Worth Statement to
understand where you are financially.
Track your finances periodically to ensure
you are on target for your long-term goals.
Make sure your whole family works together
to achieve financial goals.
In addition to financial benefit, your children
will benefit from the financial skills you are
giving them.
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