Don’t Get Stuck Selling Investments in a Down Market
You’ve done all the “right” things—saved for decades, invested wisely, and maybe even made Aliya with your U.S. accounts in tow. On paper, you’re set. But then life happens. The AC breaks. Your kid’s wedding is moved up six months. The market tanks right when you need cash. And suddenly you realize…
Your money’s tied up tighter than a suitcase before a transatlantic flight.
That’s the hidden danger of being asset-rich but cash-poor—and it happens to way more people than you’d think.
Let’s Talk About Liquidity (Yes, Really)
Liquidity might sound like one of those terms your economics professor droned on about. But trust me—it’s anything but boring when you actually need cash.
Liquidity simply means: Can I get to my money without jumping through hoops or paying a price?
A local savings account? Liquid.
A retirement account full of mutual funds? Not so much.
Now throw in living in Israel while using U.S. brokerage accounts… and suddenly you’re juggling dollars and shekels while blindfolded.
Why It Matters Once the Paychecks Stop
During your working years, you could shrug off a market dip—after all, more income was coming. But in retirement? Not so easy. When your living expenses start depending on your investments, bad timing can do real damage. Selling assets when the market is down just to pay your bills? That’s a recipe for regret.
And this isn’t just about emergencies. It’s about freedom. Liquidity means you can say yes to opportunities—or handle surprises—without financial stress.
The Three Buckets You Actually Need
Let’s break your finances into three smart categories:
- Income Bucket – Your steady cash flow: Social Security, pension, rental income.
- Growth Bucket – Long-term investments. Great for building wealth—but don’t expect them to pay your plumber tomorrow.
- Liquidity Bucket – This is your safety net. Think: emergency stash, travel fund, surprise-simcha money. Easy to access, no penalties, no stress. Ideally, keep enough here to cover 3–6 months of living expenses—in both shekels and dollars.
You want to be the person who can act fast without selling in a panic. This is how you get there.
Don’t Wait for a Crisis
I’ve seen it too many times—an investor needs money fast, but it’s stuck in long-term investments. They’re forced to sell during a market downturn and get hit with a lousy exchange rate. Not fun. Not necessary.
The good news? A little planning goes a long way. Once you dip into your liquidity bucket, refill it when the market is up, not when you’re desperate. It’s not market timing—it’s just smart timing.
Make Your Money Work for You—Not Against You
If your cash feels like it’s always just out of reach, it’s time to take control. The more prepared you are, the calmer you’ll be—no matter what life throws your way.
Want to make sure your money is working for you—not stuck when you need it most?
If you’re managing U.S. retirement accounts while living in Israel, a Cross-Border Financial Evaluation can help you spot liquidity gaps, reduce unnecessary risks, and build a plan that fits your lifestyle.
Schedule your free Cross-Border Financial Evaluation today and take the first step toward greater financial clarity and confidence.
Disclaimer: This article is meant for educational purposes only. It’s not financial, legal, or tax advice. For personalized help, speak with a qualified professional.
