I just turned 46 so retirement has been on my mind a lot lately. The idea of retirement has many millennials scrambling because they’re struggling to pay their bills. It’s difficult to think of retirement when it’s hard to buy food or pay for housing. Times seem to be changing, but in 2014, a report showed that rising food and housing costs led to expenditures that exceed income.
The number of non-homeowners also rose from 43% to 54% between 2003 and 2014 in the 25 – 34 year old age bracket.
A thriving economy starts with local investments, and for my future and the future of my kids, I know that investing in Israel is the right choice moving forward. Low risk investment options exist, and this includes your standard bonds, real estate and certain stock options.
Israel’s government bonds seem like a great start because they’re backed by the government, and millions of shekels are traded daily through bonds. Warren Buffett, the world’s leading investor, owns $5 million in Israeli bonds. Buffett and his company, Berkshire Hathaway, promoted the purchase of Israeli bonds because they’re a solid investment with low risks involved.
The Tel Aviv Stock Exchange is another great way to invest in Israeli companies, but it’s vital to do your research on the companies you invest in. Funds that track the Tel Aviv 35 are often a great option, but I chose to work with a local financial expert to help make the right investment choices.
I’ve also chosen to buy some stock in Israeli companies listed on U.S. stock exchanges.
Corporate bonds help fund Israeli companies, create jobs and allow for local progress. Investors receive higher yields than government bonds, but there are also higher risks involved. Solar fields in Negev were funded through corporate bonds, and these are the types of investments that help shape the future of Israel. Local investments that have the potential to impact the lives of my kids are what I strive to help fund, even on a small scale.
Crowdfunding is a lot of fun in Israel, and as a tech-savvy person, this allows me to really visualize the future. Israel has a lot of great startups that need funding, and the tech scene in this country is making a splash around the world. The risks are great, with 95% of startups failing, and your money is tied directly with the growth of the company.
It’s difficult to help fund a startup through venture capital, but through peer to peer lending, a lot of investors can invest in local, small companies. OurCrowd is a go-to choice, based in Israel, that allows you to invest in upcoming startups.
Magisto, for example, and I have no stake in this company, is an AI-based video production company that has co-investors from Qualcomm, Western Digital and Samsung. It’s exciting to be a part, no matter how small, in how Israel’s future is forged. Investing in Israel is not only an investment for my own retirement, but it’s an investment that will shape the economy for my children and future generations.