What to do with 5,000,000 ILS ?

jumperabv3

Disclaimer: This question is not mine directly but I'm asking it on behalf of someone, but assume that this is me for the purpose of the question. (That's what he's asking)

I have 5,000,000 ILS (Israeli Shekels) which I want to use to live off Interest. I used to live for many years in the UK but planning to leave very soon back to Israel or to another country because I'm Jewish and I feel like Israel is a good place for me and they also offer incentives for people who make Aliyah to Israel (no tax on savings for 10 years for example and more).

I worked very hard all my life to save this amount of money which nowadays equivalent to almost £910,000 GBP (based on today's exchange rate). I don't think I want to save in the UK or offshore especially because of what happened to Kaupthing bank in the Isle of Man that collapsed, I do not trust the banks in Jersey or in the Isle of Man, and I am looking for a solid monthly income to retire with and to help my children. I have no problems to use an Israeli Bank or any other bank that is very solid.

I know very little about savings and some friends told me to consult with financial advisors which is an option but I also want to consult in the forum what would you do and also what do you think on my options.

I thought of the following options:

1) Convert all the money to GBP because the GBP-ILS is very very low (used to be 1 GBP = 8+ ILS and now it's 5.5 ILS which means the Shekel perhaps is overvalued against the GBP?) - but in this case I am gambling on the option that the Shekel would get weaker in the long term against the British Pound and on the same time I don't get much of interest from my Israeli Bank on the British currency. The idea is to convert the GBP back to ILS when it's more than 6 Shekels and then stick to the ILS.

2) Convert all the money to AUD because there is an interest of 5% approx on this amount which yealds about $5600 AUD every month which is a nice salary to live off in Israel.

3) Stick to the Israeli Shekel and choose some products in Israel. The savings rate there is still low but if I choose to save 5,000,000 ILS over 6 years I can get 4% which yealds 16,666 ILS a month (currently about £3,000 per month)

Or perhaps you have better options than mine?
I personally don't want to use the stock market and I don't want to 'gamble' with my money except for currencies, unless if you think there are better options out there please advise?

Many thanks to all of you and happy holidays.

Jonbvn

I think currency risk is the biggest problem. The movements of currencies are hugely unpredictable and can create big issues for people - just ask UK pensioners in the Eurozone.

Given this, I would suggest your friend sticks to the currency he will use in everyday life.

I would comment that your friend must be quite switched on to accumulate nearly a million pounds.

jumperabv3

Jonbvn wrote: »

Given this, I would suggest your friend sticks to the currency he will use in everyday life.

You mean stick to the Israeli Shekel?

Jonbvn wrote: »

I would comment that your friend must be quite switched on to accumulate nearly a million pounds.

Can I ask what do you mean by "switched on"?

pauljoecoe

jumperabv3 wrote: »

Can I ask what do you mean by "switched on"?

Knowledgeable, intelligent, savvy, in the know.......

I think maybe the suggestion is that if the 'friend' has managed to accrue nearly a million then the 'friend' probably has the know how to best invest this money already.

jumperabv3

pauljoecoe wrote: »

Knowledgeable, intelligent, savvy, in the know.......

I think maybe the suggestion is that if the 'friend' has managed to accrue nearly a million then the 'friend' probably has the know how to best invest this money already.

No, he doesn't.
That's why he's asking these questions.
He says if it's such a problem he would open a new account in the forum and ask the questions himself, but he just wants to hear from you what you know or have in mind.
He doesn't know how to save that money or what's the best to do with it and that's why he needs help making a proper decision.

Thank you.

NB Shall I tell him to open a new user and a new topic himself, will that make you happier and get his issues addressed more properly?

1jim

wow, nice reply, should settle in well in israel with an attitute to others like that!!!

jumperabv3

1jim wrote: »

wow, nice reply, should settle in well in israel with an attitute to others like that!!!

What's wrong with the attitude?
I don't see anything wrong, but it only proves I should have posted this question and not him because then you would attack him for being a newbie or a troll.

It's a serious question of someone asking for an advice, what's the problem to provide an advice and cut the BS about Israel? I personally have connection to Israel myself (not only him) and when you say such things it just shows how things can turn to an ugly side. This is a savings forum, not a political one! Nothing that was said above has a bad attitude, so excuse me mr jim, but no one has expressed any attitude towards you or your country!

Now if you don't want to give an advice I, not him, I would appreciate if you don't reply to me!!

1jim

My advice for whats its worth,
"your friend" who has accumulated nearly £1 million pounds but doesnt know how to handle,save or invest money should get a financial advisor to help him with his money,
as for you, I would re-read your post #5 and reconsider the attitue displayed, and yes perhaps he should ask his own questions, and as for politics my advice would be for him to donate some of his money to making the palestinians life a little easier (which granted is not purely saving but is my advice regardless, if you post on public forums then expect advice that people want to offer, not just what you or your friend wants to hear)

jumperabv3

1jim wrote: »

My advice ... should get a financial advisor to help him with his money

Okay, thanks for that advice.

1jim wrote: »

donate some of his money to making the palestinians life a little easier (which granted is not purely saving but is my advice regardless

Why donate money to the Palestinians and not to the Israelis?
We (me and him) would never donate money to terrorism.

pauljoecoe

jumperabv3 wrote: »

Why donate money to the Palestinians and not to the Israelis?
We (me and him) would never donate money to terrorism.

All Palestinians are Terrorists?

Sorry - probably not sensible to start this discussion here:eek:

1jim

I think thats part of the problem isnt it, thinking all Palestinians are terrorists,
anyway
if he doesnt want to donate the money, or seek the advice of a professional finanacial advisor, I would reccomend he goes to israel via las vegas, put the whole million on red and go from there,