Israel Bonds
By: Suzanne Lako
The Henssler Financial Group Position Paper

For investors who should not be invested in the market, or those who need fixed income investments, the obvious choices for investments are money markets, CDs, Treasuries and municipal bonds. Another viable option for investors looking to invest monies in fixed instruments for at least five or 10 years, is State of Israel Bonds.

Israel Bonds are:

• Securities issued by the State of Israel;
• Available for purchase in the United States through the Development Corporation for Israel (DCI);
• Backed by the full faith and credit of the Israeli government;
• Issued to help build Israel's infrastructure (bridges, highways, water projects, airports, etc.);
• Available in taxable accounts and IRAs;
• Investment Grade, rated by Moody's and Standard & Poor's.

Having purchased many Israel bonds for clients, the process is simple. Call your local Israel bond office and they will issue paperwork for the specific bond requested, along with detailed instructions on how to complete the paperwork. If you are a first time purchaser, you will be required to sign and complete an Individual Form (for informational purposes). However, to my understanding, you will no longer be required to sign paperwork for any additional bonds purchased after this initial form is completed. There is also an Investment Form to complete, which is then sent to DCI along with a check for the bond purchase. The bond will then be delivered to you or your account depending on how you choose the bond to be held.

There are minimum purchase amounts. For example, the Jubilee bonds have a minimum subscription of $25,000 (in multiples of $5,000). This is the face amount and what you will pay for the bond. The State of Israel Savings Bonds have a minimum subscription of $2,500 in multiples of $2,500.

Some Examples Are as Follows:

Jubilee Issue Bonds	Rate	Maturity
2-year	2.76%	January 1, 2010
5-year	3.24%	January 1, 2013
1-year, 3-year and 10-year Jubilee Bonds are not offered in this sales period.
Savings Bonds	Rate	Maturity
2-year	2.75%	January 1, 2010 ($2,635 at maturity)
1-year, 3-year and 10-year Savings Bonds are not offered in this sales period.

*Rates do change. Verify current rate before purchasing. The above rates are good from January 15, 2008 through January 31, 2008 for both the Jubilee and Savings Bonds.

There are other types of Israel bonds in addition to those listed above. For current investment rates, local bond offices, or more information, visit www.israelbonds.com.

Before purchasing any type of bond or fixed investment, always remember to shop rates and pay attention to maturity dates. It is also vitally important to understand the instrument in which you are investing. For more information regarding this topic, please contact The Henssler Financial Group at 770-429-9166 or comments@henssler.com.