Moving to Israel? Keep Your U.S. Investments Safe and Thriving!
Making aliya is like jumping into the deep end of a brand-new adventure—exciting, a little nerve-wracking, and completely life-changing. You’ve packed the bags, booked the flight, and started dreaming about your new life in Israel. But before you pop that champagne at Ben Gurion Airport, there’s one big question: What happens to your money in the U.S.?
Too many olim land in Israel only to find their U.S. brokerage and IRA accounts limited—or worse, shut down entirely. It’s a gut punch no one sees coming. One day, your investments are working for you, and the next, you’re scrambling to figure out how to access your own hard-earned cash.
But here’s the good news: This is 100% avoidable. With the right game plan, you can keep your money safe, your accounts open, and your investments growing—so you can enjoy your new life without financial stress.
Can You Keep Your U.S. Investment Accounts After Making Aliya?
Short answer? Yes! But not without a little strategy.
U.S. brokerage firms are under strict regulations, and some simply don’t want the hassle of dealing with clients living overseas. If your current firm doesn’t support international clients, they might hit you with a dreaded “Sorry, but we’re closing your account” email. That’s the last thing you want to deal with when you’re trying to figure out Israeli healthcare, find an apartment, and learn how to argue with taxi drivers in Hebrew.
How to Keep Your Accounts Open and Hassle-Free
Before you move, take these steps to make sure your U.S. investments stay put:
Call Your Broker – Ask point-blank: “Do you work with clients living in Israel?” If the answer is “no” or “we’re not sure,” it’s time to switch firms.
Work with a Cross-Border Financial Pro – Find someone who speaks both “Wall Street” and “Shuk HaCarmel” fluently—meaning they not only understand the financial rules in both the U.S. and Israel, but they are properly licensed in both jurisdictions.
Set Up Easy Access to Cash – If you rely on U.S. investments for monthly expenses, don’t wait until your plane lands to figure out how you’ll withdraw money. Get that set up ahead of time!
Why You Need an Emergency Fund More Than Ever
Moving across the world is unpredictable. One day you’re setting up your new Israeli bank account, and the next, you’re paying an unexpected fee no one warned you about. Having an emergency fund is non-negotiable.
Rule of Thumb: Keep 3 to 6 months of living expenses in a liquid account you can access at a moment’s notice. This isn’t the time to gamble with high-risk investments—keep it in a U.S. money market fund or an Israeli bank account where you can reach it easily.
What About Your IRA and 401(k)?
If you’ve got an IRA or 401(k), here’s the deal: These accounts must stay in the U.S. to keep their tax advantages. That doesn’t mean you can’t manage them effectively while living in Israel.
Smart Moves for Retirement Accounts:
- Choose the Right Firm – Your IRA should be with a brokerage that actually lets you live overseas. (Sounds obvious, but you’d be surprised how many don’t.)
- Plan Your Withdrawals Wisely – Taking money out of an IRA while living in Israel can have tax implications. Work with an expert to make sure you’re doing it right.
- Roll Over Old 401(k)s – If you’ve got an old 401(k) from a past employer, rolling it into an IRA might give you more control and investment options.
Regular Financial Checkups: Adjust as You Go
Life in Israel is unpredictable, and your financial plan should grow and flex with you. A good rule of thumb is to check in on your finances every month, especially in the first year after aliya. Your investments should still align with your long-term goals, so take the time to reassess whether your portfolio needs adjustments. Tax laws in both the U.S. and Israel can change, and staying informed will help you avoid costly surprises.
And of course, your budget might need tweaking. What seemed like a reasonable estimate before the move may not account for the realities of daily life. Unexpected expenses can creep in, and the cost of living might be different than you anticipated. Then there are the small indulgences—those extra falafel runs or café stops—that add up faster than you’d think. Regular financial checkups will keep you on track and help you navigate the inevitable changes that come with settling into a new country.
Aliya is a wild ride, but your finances don’t have to be. With the right preparation, you can keep your U.S. investments secure, your cash flow steady, and your stress levels low—so you can focus on the fun parts of your new life in Israel.
If you’ve just made the move or are getting ready to take the leap, let’s talk! A solid financial plan can help you keep your U.S. investments accessible, avoid unexpected account restrictions, and ensure your money is working for you—no matter where you call home. Sign up for a free Cross-Border Financial Evaluation, and let’s make sure your financial future in Israel is as smooth and secure as possible. Schedule your call today!
