Cross-Border Finance Secrets: How Americans in Israel Can Manage Their Investments
By Douglas Goldstein, CFP® – open an American brokerage account when you live in Israel.
Navigating U.S. brokerage and IRA accounts from Israel can feel like you’re trying to juggle two different financial worlds. You’ve built up your investments in the U.S., but now that you’re living in Israel, managing those assets takes on new layers of complexity. But don’t worry—understanding how to keep your financial life on track, even across borders, is not as difficult as it may seem. With the right guidance, you can simplify the process, protect your investments, and grow your wealth with confidence.
Understanding the Challenges of Cross-Border Investing
The first thing to understand is that being a U.S. expat presents unique challenges, especially when it comes to your brokerage and retirement accounts. Many U.S.-based financial institutions may no longer want to work with you once you’ve moved abroad. You might receive a letter from your brokerage firm informing you that, due to regulatory issues, you have 90 days to transfer your account or face the possibility of losing access. That’s stressful, to say the least.
And it’s not just your brokerage firm—IRAs can be just as tricky. Even though Individual Retirement Accounts (IRAs) are meant to provide long-term benefits, U.S. regulations can complicate things for expats. Not all firms are willing or able to keep these accounts for clients living outside the U.S., and without careful planning, you might find yourself scrambling to find a solution.
Finding a Brokerage That Works for You
The good news? There are U.S.-based brokerage firms, like Profile Investment Services, Ltd., that cater to cross-border clients. We understand the complexities that come with international regulations and offer solutions tailored for people like you—those living in Israel with U.S. financial assets. Working with a brokerage firm that specializes in cross-border investing ensures that your account stays compliant with U.S. and Israeli laws. These firms often provide more than just account maintenance; they also offer expert advice and coordinate with other cross-border professionals to help you navigate international tax obligations, currency fluctuations, and even estate planning across borders.
Managing Risk in Two Economies
Living in Israel and investing in U.S. markets means you’re exposed to two different economic landscapes. The U.S. stock market may perform well, but that doesn’t always translate into security for your portfolio, especially when exchange rates and inflation in Israel come into play. You don’t want to be overly reliant on one market without considering the broader picture.
Think of your portfolio like a garden. You wouldn’t plant all your flowers in one section and ignore the rest, would you? The same goes for your investments. Diversification is key. It’s not just about spreading your investments across sectors or industries in the U.S., but also about considering how your investments fit into your life in Israel. A well-balanced portfolio can help you weather economic changes in both countries, giving you more stability.
The Importance of a Cross-Border Financial Team
One of the biggest mistakes expats make is not coordinating their financial team. Your financial advisor, accountant, and attorney need to be on the same page, especially when it comes to tax planning and estate management. Without communication between these professionals, you risk getting hit with unexpected tax bills or worse—setting up your estate in a way that doesn’t honor your wishes.
A good financial advisor will act as the quarterback of your team, making sure all parts of your financial plan work together. He will ask the right questions and suggest you discuss specific matters with your tax professional or legal advisor to ensure your strategy is solid and compliant in both the U.S. and Israel.
Adjusting Your Strategy as Life Changes
Another aspect of managing U.S. accounts from Israel is flexibility. Life has a way of throwing us curveballs. Maybe you’ve returned to work after planning for retirement, or your family situation has changed. Just like your goals, your financial strategy should adjust too.
It’s important to regularly review your portfolio, making sure your investments still align with your risk tolerance and financial goals. This is where a personalized approach can make all the difference. Your portfolio should evolve with you—not just sit idle. Sticking with the status quo can leave you vulnerable to market shifts or unexpected life changes. Your financial advisor should help you keep your strategy dynamic, updating it when necessary to ensure you’re always working toward your current goals.
Managing U.S. brokerage and IRA accounts while living in Israel requires a thoughtful, coordinated approach. You need to understand the regulations, manage risk in both economies, and work with professionals who know the ins and outs of cross-border finance. But with the right strategy and support, you can stay in control of your investments and feel confident about your financial future.
If you’re ready to see how a personalized cross-border strategy can work for you, visit Profile Investment Serices, Ltd. to schedule a free cross-border evaluation. We’ll discuss your specific situation and help you decide the best path forward for your financial success.
Disclaimer: This article is for educational purposes only and is not intended as specific financial, legal, or tax advice. Always consult with a qualified professional before making investment decisions.
