The Family CFO: A Guide to Managing Cross-Border Wealth
Being the “CFO” of your family isn’t a title you signed up for, but it’s a badge of honor you wear proudly. You’re the one keeping the financial ship afloat, ensuring everyone stays on course. But when your family’s financial world spans from the U.S. to Israel, the seas get a lot choppier.
Cross-border finance comes with unique challenges—currency juggling, tricky tax rules, and potential broker headaches. If this sounds like your reality, don’t worry. With a solid plan and the right tools, you can master the complexities and keep your family’s finances thriving.
Walk the Currency Tightrope
Managing money across two currencies can feel like a circus act. Your daily expenses in Israel are in shekels, but your investments might still sit in dollars. Should you switch everything over to shekels? Not so fast.
Diversification isn’t just about stocks and bonds; it applies to currencies, too. Keeping assets in dollars can provide stability, especially since the U.S. dollar remains a global heavyweight. At the same time, maintaining liquidity in shekels for your local expenses is a must. The key? A balanced strategy that keeps you nimble and prepared for currency shifts.
The “We Can’t Keep Your Account” Call
Picture this: You’re in the middle of a major financial move—maybe buying a house—and your U.S. broker drops the bombshell: “We can’t maintain your account anymore because you live overseas.” Sound stressful? It is.
To dodge this nightmare, it’s crucial to work with financial professionals who understand cross-border clients. Specialists can help you find brokers who won’t ghost you the moment your zip code changes. Being proactive now can save you from a mad scramble later.
Decode the Tax Puzzle
Taxes are the ultimate financial puzzle, especially when two countries are in the mix. Double taxation agreements, IRS rules, and Israeli tax laws create a maze that’s tough to navigate alone. For example, Israeli mutual funds might seem attractive, but the IRS could penalize you with PFIC (Passive Foreign Investment Company) rules that pack a serious tax punch.
This is where tax pros who know both U.S. and Israeli laws become your MVPs. They can help you minimize tax burdens and ensure compliance on both sides, keeping your finances clean and clear.
Build a Legacy Without the Guesswork
As the family CFO, it’s not just about today—you’re paving the way for future generations. This means setting up smart wealth transfer strategies, like trusts, and teaching financial stewardship. Whether it’s philanthropy or simply ensuring your kids can manage responsibly, these steps are critical for a lasting legacy.
Start the conversation with your family. What are your financial goals? How do you want your wealth to impact future generations? These discussions are just as vital as the numbers on a spreadsheet.
Being the family CFO isn’t always easy, but it’s a role filled with purpose and opportunity. By tackling cross-border challenges head-on and leaning on the right professionals, you can create a strong financial foundation for your family.
If you’re navigating the complexities of cross-border finances, don’t go it alone. Schedule a free Cross-Border Financial Evaluation today and let’s see if we can help create a plan that works for you. Click here to get started.
Disclaimer: This article is for educational purposes only and does not constitute financial, legal, or tax advice. Always consult with a qualified professional for personalized guidance.
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