How to Take Back Control of Your Financial Future
Does it ever feel like your money is on a rollercoaster ride you didn’t sign up for? You’re checking your accounts and trying to make sense of your investments, but it feels like things are spiraling out of your hands. Maybe you’ve placed your trust in a financial advisor or your bank, only to wonder whether their decisions align with your goals. If this sounds familiar, it’s time to hit pause and reassess.
Managing your finances—especially across borders—can be tricky, but the first step to gaining back control is trusting your instincts. If something doesn’t feel right, there’s probably a reason for that. Let’s explore how you can get back in the driver’s seat and steer your financial future with confidence.
Recognizing When You’ve Lost Control
Financial management isn’t always as straightforward as we’d like it to be. One day, your portfolio feels solid—comfortable even. The next, you’re looking at investments you don’t recognize or risks you didn’t intend to take. This often happens when you delegate too much control to others without fully understanding the decisions being made on your behalf. Maybe your financial advisor or bank has been steering you toward complex or high-risk investments that don’t quite fit your comfort zone.
For instance, a client of mine moved to Israel with a well-balanced U.S. investment portfolio. Initially, everything seemed stable. But over time, her local bank pushed her into riskier investments she didn’t fully understand—without her noticing the shift. The result? Her portfolio grew increasingly volatile, and on top of that, hidden tax complications surfaced that could have caused serious financial headaches.
The Problem with Complexity
It’s easy to think that a more complicated portfolio means better opportunities, but complexity often breeds confusion and risk. When you can’t keep track of your investments or when you feel unsure about the decisions being made, it’s a sign that things need to change. Investing should be about achieving your goals—not keeping up with someone else’s strategy or feeling like your financial plan is out of your control.
For my client, the situation with her bank came to a head when they ignored her concerns about these risky investments. It’s like going to a restaurant, ordering a salad, and having the waiter insist you’ll like the steak better. Sure, steak’s great—but you didn’t order it! This is your money, and no one should ever make you feel like you’re not in control of how it’s managed.
Trust Your Gut
If something feels off in your financial plan, it’s time to speak up and make changes. This can start with simplifying your strategy. The simpler your investments, the easier it is to understand and manage them. In my client’s case, we liquidated the high-risk investments and shifted back to what made sense for her: solid, steady investments in her U.S. brokerage account. By doing this, she not only reduced her risk but also gained peace of mind knowing that her money was back under her control.
Sometimes, the smartest financial moves are the ones that feel the most comfortable—like sticking with what you know and understand. That doesn’t mean avoiding all risks, but it does mean taking risks that align with your financial goals and your ability to manage them.
Avoid Hidden Tax Traps
For cross-border investors, tax complications can quickly turn a seemingly good investment into a major problem. If you’ve invested in foreign funds like Passive Foreign Investment Companies (PFICs), you could be looking at some serious tax consequences from the IRS. These tax rules aren’t always clear, and foreign banks may not tell you about them upfront. That’s why it’s critical to stay informed and work with professionals who understand both the U.S. and Israeli tax systems.
Again, it’s important to note that this is for educational purposes, and you should consult with a tax advisor or financial professional to navigate these issues.
Taking Back Control
In the end, the goal is to feel confident that your money is working for you, not against you. That means trusting your instincts, simplifying your investments, and staying on top of potential tax consequences. My client’s story is a reminder that even when things feel out of control, it’s possible to turn things around by taking proactive steps.
So, what can you do today to get back in control? Start by reviewing your portfolio. If something doesn’t sit right with you, take the time to ask questions and seek advice from professionals who can help you realign your investments with your goals. And most importantly, remember that you have options—don’t let anyone else dictate the path of your financial future.
Ready to take back control of your investments? For more tips on taking control of your finances and ensuring clear communication with your advisor, read How to Best Handle Your U.S. Investments from Israel with Clear Communication by clicking here. Learn how to ask the right questions, make informed decisions, and confidently manage your financial future.
Disclaimer: This article is for educational purposes only and should not be considered financial or tax advice. Please consult with a qualified professional for guidance on your specific situation.
