themarker.com
Better CEO Reveals Strategies for Young Israelis to Boost Savings and Investments
Tal Akroni of Better presented strategies for young Israelis to save money on banking fees, optimize pension savings, and achieve higher investment returns, emphasizing the importance of active negotiation with banks and diversified index fund investments.
- What are the most significant financial mistakes young Israelis make, and how can these be avoided?
- Tal Akroni, founder and CEO of Better, revealed ways to significantly reduce banking fees, increase pension savings, and achieve higher investment returns. He highlighted that young people often unknowingly pay numerous bank fees, such as account maintenance fees, which can be reduced by simply contacting the bank and threatening to leave. He also pointed out that automatically opened credit lines, even if unused, incur quarterly fees, avoidable by contacting the bank.
- How can young Israelis optimize their pension savings to maximize retirement funds, and what are the most common pitfalls to avoid?
- Akroni emphasized the importance of actively managing pension funds, citing high management fees and unnecessary insurance as common issues. He suggested five strategies to maximize pension savings: ensuring full salary contribution, negotiating lower management fees (up to 1.4% of monthly contributions and 0.14% of total savings), opting out of unnecessary survivor insurance, avoiding high-cost managed accounts, and avoiding unnecessary fund transfers.
- What are the most effective long-term investment strategies for young Israelis, and how can they navigate the risks and complexities of the investment market?
- Akroni cautioned against unreliable online investment advice, promoting a diversified approach instead. He highlighted seven investment avenues—three low-risk and four high-risk—and advised against single-stock investments in favor of index funds for long-term growth. He also stressed that leaving money in checking accounts results in significant financial losses for many Israelis, and that a diversified index fund approach is better suited for long-term investment returns.
Cognitive Concepts
Framing Bias
The article frames Tal Ekrone's advice as universally beneficial, potentially overstating its applicability to all young people. Headlines or introductory sentences could emphasize the expert's viewpoint more strongly than the range of financial strategies available. The emphasis on saving and investment through Better could be perceived as promotional.
Language Bias
While the language is generally neutral, phrases such as "easily save", "significant savings", and "high returns" may carry positive connotations and subtly influence reader perception. More neutral language, such as "potential savings" and "potential returns," could be used to balance the tone. The use of phrases like "easily save" could be considered promotional of Better's services.
Bias by Omission
The article focuses heavily on the advice given by Tal Ekrone, founder and CEO of Better, and may omit other perspectives or strategies for financial planning. It doesn't mention potential downsides of his recommendations or alternative approaches from other financial experts. The lack of diverse viewpoints could limit the reader's ability to make fully informed decisions.
False Dichotomy
The presentation of investment options as either 'low-risk' or 'high-risk' simplifies a complex issue. The nuances within each category and the importance of individual risk tolerance aren't fully explored. The suggestion to invest in indexes as the optimal solution without considering individual goals or circumstances creates a false dichotomy.
Sustainable Development Goals
The article focuses on helping young people save money and avoid unnecessary bank fees, which disproportionately affects lower-income individuals. By providing knowledge and strategies to reduce financial burdens, the initiative contributes to reducing economic inequality among young adults. The advice on pension fund management and investment strategies also empowers individuals to build long-term financial security, further reducing inequality.