Economy · Full coverage
Should You Tap Your Study Fund to Pay Off Mortgage Debt?
How 2 Israeli newsrooms covered this story — translated into English and compared side by side.
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By ענת גלעד
What happened
An Israeli financial article discusses whether to use NIS 400,000 from a liquid study fund to pay down a mortgage with a 4.5% interest rate. While paying off debt offers certainty, the study fund's potential 6% annual return and tax advantages may provide greater long-term wealth accumulation.
- 01Study funds can yield about 6% annually, exceeding mortgage interest of 4.5%.
- 02Profits in study funds are tax-exempt, unlike regular investments.
- 03NIS 400,000 in a study fund could grow to nearly NIS 1 million in 15 years.
- 04Paying off the mortgage offers certain savings but lower potential returns.
- 05Liquidity and reduced monthly payments are key factors in the decision.
- 06A partial withdrawal is a possible compromise.
Summary translated & synthesized from the sources below by baba. Read each original for the full report.
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