Teach Your Kids About Investing with The Jerusalem Portfolio
Children learn as much from example and from life as they do in school. Providing opportunities to children to learn about investing and how to express their values is an essential part of their education.
The Jerusalem Portfolio gives kids a good start on investing with their principles, teaches them how to make wise financial decisions, and to invest in causes they care about, such as their Jewish heritage and the State of Israel. TJP is the perfect introduction to investment and will enrich a child’s future.
Can Kids Invest?
Stocks, ETFs, and other investment vehicles seem to be grown-up topics, but it is never too early to learn. Although children under the age of 18 can’t open up a traditional brokerage account on their own, there are many options, such as joint accounts, trust accounts, and giving the TJP as a gift for a birthday, bar, or bat mitzvah or graduation.
Not only can kids invest with the assistance of an adult, but they should invest. Teaching kids about investing allows them to develop useful life skills. In addition, young people can benefit dramatically from compounding interest. For instance, a $100 investment that gains 10% in interest per year will leave the investor with $110 after the first year and $121 after the second and $131 at the end of the third year without any further action taken.
Although minors are not able to open brokerage accounts on their own, the TJP offers several options for young investors.
Downside 1joint account
A joint account can be opened by one person who can add someone else’s name to it. In usual circumstances, each joint owner of the account has full access and can deposit and withdraw money from the account. However, some restrictions may apply
depending on the age of the young person.
Downside 2Trust Accounts
Trust accounts are opened by adults usually for minors. The trust account is manage by the adult and the child is given access to the account once they have reached adulthood when they have full access and the account transfers to their name. Even though the adult has some control over the account, the child is technically the owner. This means the adult can’t withdraw money except in certain circumstances.
Downside 3 IRA
People usually open IRAs when they start their first job as adults, but some may want to get a head start when they are younger. It isn’t unusual for young people in their late teens to have jobs, and these kids may want to open an IRA with their earnings.
There are many forms of an IRA or Individual Retirement Account. Regular IRAs are funded with pre-tax money and the funds are taxed when they are withdrawn at retirement. Roth IRAs are funded with money that is already taxed and no taxes are required at withdrawal.
Downside 4Gift of TJP Portfolio
You can get a kid started on investing with a gift of the TJP. This is a portfolio consisting of fractional ownership of 100 Israeli public companies through a professionally managed portfolio of ETFs. The TJP can be gifted for as little as $180 and is presented to the child with a customized plaque with a beautiful image of Jerusalem. The TJP portfolio is a gift that is focused on the child’s financial future and encourages them to support their values and the Israeli economy.
4 Benefits of Giving The Jerusalem Portfolio to Kids
Teaches Them Firsthand About Investing
Kids may not seem so interested when adults talk about stocks, bonds, and ETFs. That is because kids enjoy learning through doing. Giving them the TJP will let them learn firsthand about how stocks and ETFs work and why investing
is so important. Showing rather than telling kids about investing yields results.
Ideal as a Bar or Bat Mitzvah Gift
A bar or bat mitzvah gift should not be something ephemeral but should be forward-looking and designed for growth. Investments will grow with time and be cherished as they appreciate in value. Giving the gift of fractional ownership in Israeli stocks fosters pride in their Jewish heritage and contributes to the growth of the Israeli economy. It is a gift that teaches a child to contribute in turn and make a positive impact.
Helps Kids Save for College
The concern about funding college is a significant one. Encourage kids to save for college early with the gift of The Jerusalem Portfolio.
Allows Them to Express Their Jewish Heritage and Support for Israel
The Jerusalem Portfolio is a carefully selected and professionally managed portfolio of Israeli ETFs representing 100 Israel-based companies. Jewish youth can play a direct role in enriching Israel’s future and expressing their appreciation of their Jewish heritage.
Stock Vs. Bonds
Israel bonds have been a popular bar or bat mitzvah present since the Jewish State was founded. There are many advantages to bonds. They are a safe, conservative investment that supports the economy of Israel. Israel bonds have a long and illustrious history in the building of the Jewish State and are a trusted form of Israeli investments.
However, there are a number of advantages of investing in Israeli stocks over Israel bonds. The bond yield is much lower than the yield of stocks, its value decreases when the yield increases and cannot be sold earlier than the expiration date if the funds are needed.
Israel is often called the start-up nation because of its impressive growth in the areas of tech and healthcare. It is now possible and profitable to invest in the Israeli stock market through ETFs and other investment vehicles. Its economy is growing at a faster rate than in the past and there are now significant advantages to investing in Israeli stocks rather than bonds, because of higher growth and the liquid nature of stocks.
Therefore, the TJP could be to a bar or bat mitzvah in the 21st century what a gift of Israel bonds was in the 20th.
Helping Kids Get Started in the Right Direction
Learning to invest as a child or teenager can have a huge impact in their financial future. The practical knowledge about investing as well as compounding interest can help young people get a healthy financial start and help them face the real world with security. Encouraging them to invest in Israel’s economy can deepen their connection to their Jewish heritage.
About The Jerusalem Portfolio
The Jerusalem Portfolio is comprised of a fractional interest in 100 Israeli companies through a portfolio of professionally managed ETFs. The recipient will be given a plaque with a beautiful and customized image of Jerusalem. Talk to our experts today about giving the Jerusalem Portfolio to a special young person as a bar or bat mitzvah gift, birthday, graduation, or other occasions.