The management model of personal provident fund (IRA) has existed in Israel since 2007. While there is not yet developed
the Knesset Finance Committee yesterday approved the expansion of the personal management so that all employees in the economy will be able to save for retirement within the limits of the amount of deposit will stand at a little more than – 5 million. Indeed, the majority of employees will enter the threshold above.
Pre-retirement personal management option – everything in the market is existing shelf products
Provident funds marketed aggressively by investment firms to clients who want to save their money in retirement.
There were, and still are, many provident funds that offer themselves and their management, and the prices are not cheap.
Especially – do not offer full compatibility with the nature of the saver.
The decision made yesterday in the Knesset Finance Committee says that each employee can save money in a provident fund or study fund through personal money management starting from the first shekel.
It is worth remembering – through savings in an IRA allows a perfect fit to the nature of saving as well as capital gains tax savings.
Saver will set and decide, whether alone or through a professional, how he sees his provident fund – which is actually also his piggy bank – pensions. Dependence on the various shelf products evaporate.
Simplify the matter for a moment – this is a portfolio managed by the investor or by the Investment Manager, built a very long-term investment with a tax benefit mechanism and the end of the process – the pension age – the investor can withdraw pension every month.
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