Living in Israel with U.S. investments can feel like juggling two worlds. You’re balancing time zones, currencies, and tax systems. But with the right strategy, you can thrive on both sides of the ocean. Whether you’re growing your wealth, preserving it for the next generation, or managing cross-border investments, you can take control of your financial future.
Let’s break it down, step by step.
Step 1: Get a Clear View of Your Finances
A client once told me, “I never really knew where my money was until I started asking the tough questions.” She had multiple accounts across the U.S. and Israel, a scattered portfolio, and no clear strategy. Like her, you might feel overwhelmed by the complexity of managing your finances internationally. But clarity is the first step to success.
Ask yourself these questions:
- What are my short-term and long-term financial goals?
- Which investments do I own, and how are they performing?
- How do these investments align with my goals?
- Are there hidden risks I need to address?
Once my client had these answers, she gained peace of mind—and a plan to build her future. Taking stock of your situation is empowering. Knowing your numbers puts you in control.
Step 2: Check In with Your Investments
Imagine your investments like a fruit orchard. When you plant a tree, you can’t just forget about it. You need to water it, prune dead branches, and sometimes replant to maximize growth. One client learned this the hard way. He hadn’t reviewed his portfolio in years. When we sat down together, he found outdated holdings that didn’t fit his current goals.
Markets shift, and your needs change. Regular reviews help keep your investments fresh and aligned with your vision. Take the time to weed out underperformers and make room for new opportunities.
Step 3: Understand Taxes—So You Can Keep More of What’s Yours
Taxes can feel like a labyrinth, especially when you’re dealing with investments in two countries. I recently helped a couple living in Tel Aviv navigate U.S. capital gains taxes on a large stock sale. They were relieved to discover that the U.S.-Israel Tax Treaty prevented double taxation—but they also learned the importance of timing their transactions for tax efficiency.
Without proper planning, taxes can eat away at your returns. A cross-border tax advisor who works with your investment professional can guide you through the complexities, ensuring compliance and helping you keep more of your hard-earned money. Think of it as having a GPS to avoid financial potholes.
Step 4: Estate Planning Is for Everyone
Estate planning isn’t a topic most people enjoy discussing. I worked with a family who learned this lesson too late. When a loved one passed unexpectedly, they faced months of legal hurdles and unexpected taxes on U.S. assets. It was a tough situation that could have been prevented with the right plan in place.
As Warren Buffett said, “Someone’s sitting in the shade today because someone planted a tree a long time ago.” Plant that tree now. Protect your loved ones by organizing your estate—before life takes you by surprise.
Step 5: Expect the Unexpected
A few years ago, one of my clients experienced a financial setback due to sudden medical expenses. Thankfully, the couple had followed my advice and built an emergency fund. This cushion allowed them to cover immediate needs without derailing their long-term goals.
Unexpected events—personal emergencies, market downturns—are inevitable. Your financial plan needs to include a safety net. An emergency fund is your lifeline, keeping you afloat when life’s storms hit.
Take Action!
You’ve worked hard to get where you are. Now it’s time to make your money work just as hard for you.
- Review your financial goals regularly.
- Check in on your portfolio to keep it aligned.
- Consult experts to help navigate complex areas like taxes and estate planning.
By staying proactive, you’ll gain control of your financial destiny—and peace of mind for the years ahead.
Ready to optimize your U.S. investments and plan for a brighter future? Schedule your free Cross-Border Financial Evaluation today. We’d love to see if we can help you build, grow, and protect your wealth—so you can live confidently wherever life takes you!
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of this website, Portfolio Resources Group, Inc. or its affiliates. Nothing in this article is intended to be investment, tax, or legal advice. Information in this article is gathered from sources considered reliable, but we cannot guarantee their accuracy. Past performance is no guarantee of future returns.
