It is important that you know one of the most attractive investment routes today. If you too feel that all your savings are accumulating mainly dust in the current account, you must be aware of the possibility of an investment provident fund. Banks now offer savings plans with zero interest rates and with the condition of closing the money for different periods of time.
The possibility of leaving the funds in the current account is even worse, which is why many today choose to start looking for alternatives to house all their savings in. One of the most sought after alternatives today is an investment provident fund that allows all investors to enjoy high annual returns.
So how does it work and what is important to know before choosing to invest in an investment provident fund track? Israel’s insurance portal has gathered for you all the important highlights that you must know before each step. Many people choose to invest all their money in provident funds in different routes without knowing all the secrets of the differences between the different routes and investment houses. Before we get you all in order, it is important to start at the beginning of the investment provident fund route.
The irrigation provident fund route began in 2016 and has since been considered one of the most sought-after investment channels.
Route Investment provident fund Started in 2016 and today, all investment houses in Israel offer their clients provident fund routes for investment. This figure requires you to use an investment provident fund calculator and choose the right investment house and provident fund for you.
Where do you start, you ask? From the annual yield percentages. The overriding purpose of an investment provident fund calculator is to enable all investors to enjoy significant percentages of return on all their money. With the help of an investment provident fund calculator, you can also estimate the amount you will earn each year, considering the amount you have chosen to invest. The desired yield percentages are basically the positive interest rate you will get on your money. The higher the percentage of return, the more you will earn, so when you start the task of locating an investment provident fund calculator, you must start by comparing the percentages of return that the various investment houses have been able to achieve for all their investors.
In the internet age you will be able to get all the information you need with a few simple button clicks. The various investment houses publish their results every few months so that you can make a simple comparison with the help of an investment provident fund calculator. Many compare the percentages of return that investment houses have been able to generate in the last year alone so it is important to emphasize that the last year is not enough.
Before you choose the winning investment house to house your savings in, it is important to make sure that it does manage to produce particularly high yield percentages year after year for several consecutive years. You can see the percentages of return that the investment houses have achieved in the last year, in the last three years as well as in the last five years so that you get the most complete and accurate picture.
Did you compare the yield percentages? It’s time to compare management fees as well – everything you need to know
But can you choose your investment house only based on a check of an investment provident fund calculator for the percentage of return? The answer is no. The largest insurance portal in Israel Gather for you all the most important highlights so it is important that you know another point that you need to check before choosing.
The second point is the level of management fees. As is well known, every investment house employs skilled professionals who know how to identify the best investments that will yield high yields with low risk. Beyond that, all the operations of transferring the funds between the various investments cost money and therefore every client who invests his money in a provident fund is required to pay management fees.
The management fee is divided into two sections. The first clause is a payment for all the accumulation of all the money in your provident fund and the second clause is charged according to the total deposit. By law, the maximum management fee is 1.05% of the accrual fee and another 4% of the total deposit but the investment houses offer various management fees. An investment provident fund calculator allows you to make accurate comparisons so that you know how much money the difference between the level of management fees will be expressed.
Many who choose to use this option of an investment provident fund calculator manage to reach a particularly accurate decision of the best investment house both in terms of annual yield percentages and in terms of the level of management fees. It is important to emphasize and say that the management fee is negotiable and therefore it is advisable to try and lower it as much as possible. Many people who do not understand the field see the management fee as an indisputable figure and are therefore forced to pay particularly high management fees. The largest insurance portal in Israel allows many to enjoy practical, up-to-date and clear content so that you can benefit greatly from it.
All your investment money is liquid so you can withdraw it whenever you want
So having touched on the most important points that you must check carefully with the help of an investment provident fund calculator, it is important that you know a few more important points about the benefits of this route. As we mentioned above, this option of an investment provident fund calculator is considered a particularly attractive investment option not for nothing. We have gathered for you all the biggest and most significant benefits that manage to attract quite a few investors.
Among all the great benefits of an investment provident fund calculator is the fact that all your investment money is liquid. Unlike the various savings plans of the banks, this option of an investment provident fund will allow you to spend all or part of your money whenever you want without any penalties at all. Liquidity of money attracts many investors to choose this option over many other alternatives. But it is important to emphasize that like any other investment channel, even in this case you will be required to pay capital gains tax at a rate of 25% on all your profits.
But even this figure is not accurate, if you decide to keep all your money until retirement age and enjoy a monthly pension, you can save on paying capital gains tax and enjoy the full amount you were able to save without any deductions at all. The largest insurance portal in Israel guarantees you up-to-date content so that you can easily enjoy all these benefits.
This way you will be able to get the loan with the most attractive terms – the way to the right leverage
If all this is not enough, there is another option that attracts many investors and that is the leverage option. An investment provident fund calculator allows you to estimate how much you will earn each year so that you can check whether you should get a loan against the amount invested. An investment provident fund allows all its investors to enjoy the option of receiving a loan of up to 80% of the amount they have invested.
This figure allows many investors to invest all their money in an investment provident fund, receive a loan on particularly attractive terms and continue to invest the loan money in other channels. If this leverage option is of interest to you as well, do not hesitate to stop the accumulation of dust in the current account and invest in an investment provident fund. The largest insurance portal in Israel gives you all the knowledge and tools for success.
The largest insurance portal in Israel
Source: Maariv.co.il – כלכלה בארץ by www.maariv.co.il.
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