How to Give a Bar or Bat Mitzvah Gift With Meaning
A bar or bat mitzvah is one of the most important Jewish lifecycle events. It marks a transition from childhood to adulthood and represents new responsibilities and hope for the future. These are occasions marked by huge gatherings and gifts from family. It is traditional to give the bar or bat mitzvah a gift of Judaica that marks their connection to their Jewish heritage. It is also traditional to give money in multiples of 18 that represents the word chaim or “life.”
One gift that expresses the meaning and significance of this rite of passage is a financial gift, particularly an investment. Rather than giving a fixed amount of money that will be spent on one occasion, an investment represents growth, maturity, and a healthy financial start to adulthood.
The Jerusalem Portfolio can also express the bar or bat mitzvah’s Jewish heritage and commitment to supporting the State of Israel
The Benefits of Giving an Investment
The benefits of giving an investment are both practical and symbolic. An investment is the ideal bar or bat mitzvah gift because:
It Avoids Duplicate Gifts
It Grows with Time
It teaches young people how to invest
It will help them begin their adulthood with a healthy financial start
It will allow them to express their values
Investments avoid the problem of duplication on occasions that require gifts. Unlike simply giving a check, investments grow over time. An investment truly is a gift that keeps on giving. Young people can learn to invest with a fund or a portfolio.
This will help the young person begin their adulthood with a healthy financial start once the investment has reached maturity. It is also a way to save for financial goals, such as college, and avoid debt in the future. With Israel-related investments, young people will learn to invest with their values and using their money to help grow Israel’s economy.
Funds and Investment Choices
When you want to give the gift of an investment for a bar or bat mitzvah, there are a number of choices.
Downside 1Joint Account
A joint account can be opened by an adult who can put a child’s name on it. In this case, the child and the adult own the account jointly, but according to regulations, the adult may be the one who can manage the account until the child reaches the age of majority, which could be 18 or 21 depending on the state.
Downside 2Trust Account
A trust account is opened by an adult but unlike the joint account, it nominally belongs to the child. However, the trust account is managed by an adult until the child reaches maturity. One way to get the child used to invest is to get them involved indirectly in the management of their trust account so they have familiarity with their holdings before taking control of their account at the age of 18 and 21.
Downside 3The Jerusalem Portfolio
The Jerusalem Portfolio is an Israel-focused portfolio with fractional ownership in over 100 Israel public companies through professionally managed ETFs. It can be purchased for a minimum amount of $180 and is given with a customized plaque and a beautiful depiction of Jerusalem. The Jerusalem Portfolio will grow along with the young recipient.
The Jerusalem Portfolio versus Israel Bonds
Along with giving money, Israel Bonds has also been a traditional financial present to a bar or bat mitzvah. Israel Bonds were a factor in the building of the State of Israel and were a valuable gift at a time when bond interest rates provided a significant return.
Israel bonds have some advantages.
They are a long-term, safe investment and provide some return, in some cases slightly higher than the interest on a savings account.
However, in an era when Israeli companies, particularly startups in the high-tech and healthcare industries, are seeing significant growth, investing in Israeli companies through the ETFs in The Jerusalem Portfolio provides a higher growth prospect than Israel Bonds. With higher growth comes slightly higher risk, but given the diversification of The Jerusalem Portfolio, the risk of one stock is offset by the others.
Invest in A Child’s Future with the Gift of The Jerusalem Portfolio
A bar or bat mitzvah is an occasion that marks a transition to adulthood and a celebration of Jewish heritage. One meaningful way to represent growth for the future, individually and collectively, is through a gift of The Jerusalem Portfolio. The young person not only learns to invest and can start adulthood with financial security but will also make a contribution to the growth of the Israeli economy and mark the occasion through expressing their values.