May 2 • 2019 13
jn
— ADVERTORIAL —

Investing in
Israel

By Reuben Rashty
S

ince 1951, Israel Bonds has 
been providing supporters of 
Israel with a way to participate 
in the economic support of the 
State of Israel. Proceeds from Israel 
bond sales have developed every 
aspect of Israel’s economy. These 
bonds are essential for Israel – in 
times of crisis, when funding needs 
are immediate, these bonds can 
be used to efficiently and cost-
effectively secure capital from the 
worldwide Jewish community.
Our clients have often mentioned 
Israel bonds as a way to invest in 
Israel – we took these comments 
to heart at Fifth Third Private Bank 
and recently announced we have a 
relationship with the Development 
Corporation for Israel – the broker 
dealer which underwrites bonds 
issued by the State of Israel in 
the U.S. – to offer an option for 
investors to finance the purchase 
of an Israel bond with a low out-
of-pocket cost. High net worth 
individuals can secure a loan from 
the bank to purchase a $500,000 
to $1 million two year Israel bond1 
with the bond serving as collateral. 
Upon maturity of the two-year 
bond, the loan is repaid and Israel 
has benefitted from the $1 million 
investment during that period.
Why Israel bonds? 
From an investment perspective, 
Israel bonds may offer clients the 
opportunity to preserve capital, 
and diversify their portfolio. These 
bonds can be added to IRAs, 
trust funds, pension funds and 
endowment funds. 
But – more importantly – this 
allows the Jewish community in the 
U.S. to directly invest in Israel. 
These bonds provide options 
when planning for financial goals, 
including portfolio diversifications, 
retirement planning – and make 
great gifts for weddings, bar/
bat mitzvahs or births. Many 
Foundations hold Israel bonds 
as part of their investment 
portfolio and also gift the bonds 
as part of their charitable giving to 
organizations such as colleges and 
universities, federations and large 
national charities. 

Warren Buffet also has a strong 
affinity for Israel bonds. Buffet is 
such a strong believer, he said if 
Israel Bonds offered a perpetual 
bond, he would buy it. Separately, 
more than 90 states and municipal 
public employee pension funds and 
treasury funds have invested more 
than $3 billion in Israel Bonds. 
If you are interested in learning 
more about Israel bonds or have 
investment questions2, I would 
encourage you to reach out 
to Adam Grossman, assistant 
executive director at Development 
Corporation for Israel, adam.
grossman@israelbonds.com. If you 
have any questions about Fifth 
Third Private Bank, please contact 
me directly, reuben.rashty@53.
com. 

Reuben Rashty is a member of Keter Torah 
and lives in West Bloomfield. He is the 
managing director for Fifth Third Private 
Bank of Michigan.

1An Israel bond: (1) Is not FDIC insured, 
(2) Not Bank guaranteed, (3) May lose 
value, (4) Is not a deposit, and (5) Not 
insured by any U.S. federal government 
agency.

2Approval of the loan and the terms of the 
loan are within the discretion of Fifth Third 
Bank and ne ither the State of Israel nor 
DCI can make the decision whether Fifth 
Third Bank will grant you a loan and on 
what terms a loan will be made. Private 
Bank Checking account or Platinum 
Capital Account required. Other terms 
and conditions may apply.

Fifth Third Private Bank

300 Park, Suite 300

Birmingham, MI 48009

313-230-9026

www.53.com/privatebank