Managing family finances goes beyond just dealing with local banks, paying bills, and filing taxes. When family members live in different countries, each with its own rules and financial systems, things get complicated. This complexity can cause the family’s CFO (the person in charge of the family’s money) stress when he needs to navigate different financial systems and tax codes. But there is a way to simplify family finances in this situation.
Understanding Rules and Getting Help
When dealing with cross-border finance, one of the first challenges is knowing the different rules and regulations. Each country has its own financial laws that can affect things like where you can keep your money and what type of investments are tax-beneficial. Sometimes, family members move abroad and find out that their old brokerage firm can’t help them anymore because of their new address. This is when it’s important to team up with experts who know how to manage money that crosses borders so you can keep your finances running smoothly no matter where you are.
Dealing with Currencies
Currencies also play a big role in international finance. For example, if you’re an American living in Israel, you might have to deal with both dollars and shekels. This means you need to be smart about how you spread your money out to protect yourself from changes in currency values. By diversifying your money across different currencies, you can potentially lower your risk.
Staying on Track
Navigating the world of international finance isn’t easy, but with the right knowledge and help, it can be done. If you’re feeling overwhelmed trying to manage your American investments from Israel, remember that there are professionals who can guide you through the process. While many American firms are dismissing clients with foreign addresses, we welcome international relationships. We custody our clients’ accounts at Pershing, LLC. Member NYSE/SIPC, a subsidiary of the Bank of NY Mellon Corp. That means that all the assets are held in America, the statements are all in English, and all the accounts are compliant with IRS regulations. If you need help, don’t hesitate to reach out at (02) 624-2788.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published May 9, 2024.