Tokyo's stock exchange features two main indices: the Nikkei and the Topix. What is the Nikkei 225 Index? It is the main index on the Tokyo Stock Exchange, calculated since 1949. The index includes the 225 companies with the highest market capitalization on the exchange. Stock weightings are updated annually in October and are determined by share price. As a result, about half of the index's fluctuations are driven by its 20 heaviest-weighted stocks. Additionally, investing in this index in shekels exposes investors to exchange rate fluctuations between the shekel and the Japanese yen.

Among the companies listed on the index are Toyota, the world's largest car manufacturer, with a market cap of 34 trillion yen; Sony, the electronics giant active in a range of sectors, with a market cap of 23 trillion yen; Mitsubishi Financial Group, one of Japan's largest banks, valued at 22 trillion yen; and others.

Since 2014, the Japanese government has taken measures to encourage households to invest in stocks, in addition to reforms introduced by the exchange itself to incentivize listed companies. Investment in the Japanese stock market can be made either through direct purchases of Japanese shares or via mutual funds and exchange-traded funds (ETFs) listed abroad or in Israel.

This article is not a substitute for personal investment advice. 

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Rebalancing Asset Allocation: It's a good time to review whether your current asset mix still aligns with your risk tolerance and investment horizons for each part of the portfolio. You may decide to reduce exposure to high-risk assets, such as stocks, and increase holdings in more stable ones.

Diversification is Key

Investments should be spread across different asset classes, geographical regions, sectors, and fund managers. Proper diversification helps reduce the overall risk of the portfolio.

Think Long Term

Particularly when it comes to pension portfolios, maintaining a long-term perspective is crucial. Avoid reacting impulsively to short-term market volatility.

Maintain Liquidity

For liquid investment portfolios, it is important to keep a sufficient level of liquidity to cover both planned and unexpected expenses—and to capitalize on potential opportunities in the markets.

Seek Professional Advice

It is advisable to consult with an objective investment and pension advisor to receive recommendations tailored to your financial situation and goals.

Ongoing Monitoring

Regularly track your portfolio's performance and make adjustments as needed.

Each family must build a portfolio that is right for them. There is no magic solution or one-size-fits-all approach.

The above does not constitute a substitute for personalized investment or pension advice.

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An analysis of the data suggests that from Passover 2024 (Nisan 5784) to Passover 2025 (Nisan 5785), household expenses rose by an average of 5 to 7 percent.

For an average household, this translates to an increase of about 900 to 1,200 shekels per month. Still, surveys show that the holiday expenses for a typical family range from 2,000 to 5,000 shekels, including food shopping, cleaning, festive meals, and outings during the holiday and the intermediate days. The biggest expense is for kosher-for-Passover food, which costs about 30% more than non-kosher-for-Passover items.

One effective strategy for managing these expenses is to create a dedicated holiday budget. Many households begin saving around three months before the holiday, setting aside a fixed amount each month for this purpose. Budget planning apps or spreadsheets can help: it's important to define a clear budget for the holiday and stick to it as much as possible. Specialized digital tools can be used to track spending.

Buying non-perishable goods and Passover utensils in advance helps avoid last-minute, higher-cost purchases. Shopping in bulk at supermarkets also reduces costs. It's recommended to carefully review the list of expenses, stick to it, and distinguish between essentials and non-essentials.

Price comparison: Before buying products, it's advisable to compare prices across different retail chains. Websites and mobile apps can help with price comparisons.

Some families choose to hold the Passover Seder together with relatives or friends, significantly reducing costs.

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In the US, research indicates that women are taking the financial reins in more than 40% of households, handling money matters either exclusively or as the primary manager. Princeton University researchers discovered that these female-managed households demonstrate stronger long-term savings habits while accumulating fewer consumer debts. Complementary studies reveal women typically approach financial decisions with greater caution, prioritizing family security above all.

The European financial landscape shows striking regional differences. Scandinavian households embrace equality, with approximately 60% of couples sharing financial management responsibilities equally. This progressive approach contrasts sharply with southern European nations, where only 25-30% of women play significant roles in major financial decisions.

Israel falls somewhere in between, with studies from recent years pointing to women's growing financial influence. According to research conducted by the Israel Democracy Institute, women oversee day-to-day budgeting in 45% of Israeli households. However, when it comes to long-term financial planning and major investments, female participation drops noticeably to just 30%.

The evidence consistently demonstrates that higher female involvement in household financial management correlates with numerous positive outcomes: improved savings rates, greater family financial stability, and more equitable resource distribution among family members.

This isn't isolated to a single region – across all countries included in these studies, researchers have identified a clear upward trajectory in women's financial decision-making participation, suggesting a global shift in domestic financial dynamics.

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The first approach involves purchasing physical gold in the form of coins and bars. This includes options like the "American Eagle" gold coins or gold bars available in various weights. While gold jewelry represents another physical option with aesthetic appeal, buyers should be aware it typically carries a premium above the price of pure gold.

Gold, along with other precious metals, trades in the relatively ancient weight measurement known as ounces. This weight unit effectively defines the global physical gold price benchmark. Investors should note that physical gold purchases involve additional considerations including storage costs and insurance requirements. Within Israel, physical gold purchases incur VAT. These transactions can be conducted through authorized gold dealers, though potential buyers should verify their chosen dealer adheres to international standards.

Exchange-traded funds (ETFs) represent a second, more operationally streamlined investment avenue. The buying and selling process mirrors that of any other security through securities accounts maintained at banks or investment houses. Investors can choose between foreign or Israeli-based ETFs. This approach eliminates physical storage concerns while offering enhanced liquidity and investment flexibility.

A third investment strategy involves purchasing shares in companies engaged in gold mining and trading operations, primarily listed on exchanges outside Israel. This approach offers positive potential during periods when gold prices rise and company performance remains strong. However, investors should recognize that performance depends on company operations and not exclusively on gold price movements. As with ETF investments, these transactions can be executed through standard securities accounts.

Readers should note that the information provided above does not substitute for personalized investment advice tailored to individual client circumstances.

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Interest rates in Israel are forecast to decrease this summer or slightly earlier. If implemented now, such a reduction would significantly impact household finances among other economic effects.

The economic impact on Israeli households would be substantial and multifaceted. Homeowners with variable-rate mortgages currently enjoy payment stability, allowing for more effective long-term financial planning. Meanwhile, those seeking new mortgages will continue facing similar financing terms, experiencing neither relief nor increases in their repayment obligations.

In the savings domain, maintaining current interest rates offers no improvement for bank deposit returns. However, rate stability provides a measure of security for small investors with capital market holdings.

The unchanged interest rate also influences consumer markets and lending. Loans for major purchases like vehicles or home renovations maintain similar terms, neither stimulating nor deterring private consumption. Yet the relatively high unchanged interest rates may continue burdening households dependent on credit for daily expenses.

Interest rate stability additionally affects living costs. Maintaining current rates may help control inflation over the medium term, preserving household purchasing power. However, excessively high rates risk slowing economic activity. Households must adapt their financial management to this stable interest environment by focusing on proper budgeting, strategic debt reduction, and maximizing savings whenever possible.

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Starting too late: One of the most severe mistakes is delaying the start of savings. Even small amounts invested at a young age can accumulate significant value thanks to compound interest over decades.

Lack of engagement: Many settle for mandatory deposits and don't check management fees, investment channels, or fund performance. Ignoring pension savings details can lead to long-term losses.

Management fees: A difference of 0.5% in management fees could lead to a loss of hundreds of thousands of shekels in the long run. It's important to negotiate management fees and check them periodically. Early withdrawal of pension funds involves penalties and high taxation, significantly damaging future accumulation.

Lack of diversification: Relying on a single savings channel increases risk. Combining pension funds, managers' insurance, advanced training funds, and additional savings provides greater security.

Ignoring supplementary insurance: Many are unaware of the importance of loss of work capacity insurance and other supplementary insurance that protects the ability to continue depositing to pension in case of disability or illness.

Here are several factors leading to losses:

• Low deposits - reduction of hundreds of thousands of shekels at retirement age.
• Failure to utilize tax benefits - loss of thousands of shekels annually.
• High management fees - reduction of 10%-20% of total savings over time.

The above should not be considered a substitute for personalized pension advice tailored to the client.

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European markets have recently been attracting growing interest as they represent an important part of the global economy, with several prominent financial centers.

London - The London Stock Exchange is one of the largest in the world. Its market capitalization exceeds $4 trillion, and its leading index is the FTSE 100.

Frankfurt - The Frankfurt Stock Exchange is the leader in the European Union. Its market capitalization is approximately $2.5 trillion, and its leading index is the DAX.

Paris - The Paris Stock Exchange is part of the Euronext group, one of the largest in Europe. Its market capitalization is approximately $2.2 trillion, and its central index is the CAC 40.

Amsterdam - The Amsterdam Stock Exchange is also part of the Euronext group, and its leading index is the AEX.

Zurich - The Zurich Stock Exchange has a market capitalization of more than $1 trillion. Its leading index is the SMI, which consists of the 20 largest companies in Switzerland.

The major companies listed in London include, among others, Shell, which operates in the energy and fuel sectors. The major companies listed in Frankfurt include Siemens, which operates in automation, digitization, and electrical infrastructure; Volkswagen, which manufactures automobiles from basic to luxury vehicles; and others.

The major companies listed in Amsterdam include AkzoNobel, which deals with paints and chemicals, and Booking. The major companies listed in Zurich also include Nestlé - one of the world's largest food and beverage companies.

The information above should not be seen as a substitute for personalized advice tailored to the client.

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One of the primary applications of artificial intelligence in personal finance is expenditure pattern analysis. Smart applications can scan all banking transactions, categorize them, and identify spending trends with remarkable precision. For example, the system can alert when restaurant expenses exceed the monthly average or when utility payments show unusual spikes.

Additionally, it can assist in creating customized budgets that actually work. Based on detailed analysis of historical income and expenses, the system can suggest realistic savings targets and adjust the budget to align perfectly with the family's financial goals. It can also recommend practical ways to reduce expenses and boost savings potential.

One of its most powerful advantages is the ability to predict future expenses with high accuracy. The system can provide advance warnings about upcoming payments such as insurance premiums, tax obligations, or mortgage installments, and help families prepare their finances accordingly. Furthermore, it can identify seasonal spending patterns and assist with strategic advance planning.

AI also serves as a sophisticated investment advisor. Smart systems can analyze a family's risk tolerance profile, suggest appropriate investment vehicles, and monitor portfolio performance in real-time. They can also alert users to emerging investment opportunities or signal when portfolio rebalancing might be necessary.

In the realm of cost reduction, it can identify numerous opportunities to save money. For instance, the system can compare insurance rates or telecommunications packages, and recommend switching to more cost-effective providers. It can also detect duplicate charges and suggest efficient ways to eliminate them.

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One of AI's key applications in this field is expense pattern analysis. Smart applications can scan all banking transactions, categorize them, and identify spending trends. For instance, the system can alert users when restaurant expenses exceed monthly averages or when electricity payments show unusual spikes.

Additionally, AI assists in creating personalized budgets. Based on historical income and expense analysis, the system can suggest realistic savings targets and adjust the budget to match family financial goals. It can also recommend ways to reduce expenses and increase savings.

A significant advantage of AI is its ability to predict future expenses. The system can provide advance warnings about upcoming payments such as insurance premiums, taxes, or mortgage payments, helping families prepare accordingly. Furthermore, it can identify seasonal spending patterns and aid in advance planning.

AI also supports investment decision-making. Smart systems can analyze a family's risk profile, suggest suitable investment channels, and monitor portfolio performance. They can alert users to investment opportunities or signal when portfolio adjustments are needed.

In the savings realm, AI can identify opportunities to cut costs. For example, it compares insurance rates or communication package prices and recommends switching to more economical providers. The system can also detect duplicate charges and suggest ways to eliminate them.

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