New Family Program Integrates Capital Markets with Gemach for Wedding Expenses
Translated & summarized from Behadrei Haredim by baba
Mesimim has launched a new family program that combines the Central Gemach's wedding expense plan with capital market investments. Parents can now make a single monthly contribution for all children, including future ones, to secure interest-free loans for weddings. The program offers two tracks: a classic Gemach option or a combined track with stock market investments, supported by a new financial simulator.
The story in 6 lines · by baba
- Mesimim's new family program integrates the Central Gemach with capital market investments for wedding expenses.
- The plan allows a single monthly contribution for all children, including those not yet born.
- Families can secure interest-free loans ranging from NIS 40,000 to NIS 400,000 per child.
- Two tracks are available: a classic Gemach option or a combined track with stock market investments.
- A new simulator helps families assess financial projections for the combined investment track.
- The program aims to provide long-term financial planning solutions for children's wedding costs.
A new family program has been launched by Mesimim, integrating the Central Gemach's successful family plan with capital market investment options. This initiative aims to help parents prepare for their children's wedding expenses by offering a long-term financial framework tailored to family needs, while adhering to the principles of the Central Gemach.
The program was developed in response to numerous requests from parents seeking to benefit from the family plan within the Mesimim framework. The updated plan allows families to contribute a single, fixed monthly payment for all children, including those not yet born, instead of opening separate accounts for each child. This contribution is made over 27 years and grants eligibility for interest-free loans for the children included.
Families joining the program can select loan amounts for each child ranging from NIS 40,000 to NIS 400,000. These interest-free loans are provided at the time of the children's weddings and are repayable over 100 monthly installments. Eligibility for the program is subject to specific criteria, including the number and ages of existing children.
Mesimim is offering two distinct tracks for this new family plan. The first is the classic Gemach track, which relies solely on the Central Gemach's family plan without capital market exposure. The second is a combined track, linking Gemach loan eligibility with savings through investment in leading global stock market indices, such as the S&P 500. This investment component is intended to help families finance future loan repayments and involves market risks.
To assist families in understanding the combined track, Mesimim has introduced an advanced simulator. This tool projects the expected financial picture, showing planned loan amounts alongside savings forecasts, to clarify the relationship between program components and the required long-term planning. Mesimim emphasizes that this new family plan complements existing programs, expanding choices to help each family find the most suitable option for their circumstances.
