A longtime reader called me recently, excited—but also a little panicked. After years of dreaming about aliya, he was finally making the move. But then came the big question:
“Doug, what do I do with my dollars? Should I move them all to Israel? Sell everything? What happens to my U.S. investments?”
I hear this all the time. People assume moving countries means hitting the financial reset button. You don’t need to reinvent the wheel. You just need to update your financial plan to include multiple tax jurisdictions and make sure your money works for you.
Keep Your Money Where It Works Best
Instead of cashing out or making impulsive moves, set yourself up for flexibility.
Here’s what I suggested:
- Keep your money in U.S. brokerage accounts with companies that specialize in cross-border clients. Moving your money to Israel just because you’re moving? That’s a ticket for tax problems, confusion, and possible loss.
- Have cash reserves ready. Keep three to six months of living expenses in a money market fund or a short-term bond fund. You don’t want to sell investments at a bad time just to cover cash flow necessary in setting up a new house.
- Roll over 401(k)s into an IRA. Having a single retirement account simplifies your finances and gives you more control. Why leave your money in a former employer’s plan? Unless there’s a compelling reason to maintain the old plan, take charge of it by transferring the assets to a self-directed Individual Retirement Account (IRA).
Work with Someone Who Knows the Routine
I asked if he had a U.S. and Israel-licensed financial planner. “No,” he admitted. That’s a critical oversight. Managing investments across two countries involves complexities and nuances. To safeguard your wealth, you need a professional who specializes in cross-border financial planning— someone who understands the complexities of both U.S. and Israeli regulations and can help you structure your assets accordingly.
Aliya Is a Financial Crossroad—Make Smart Moves
At the end of the call, I told him, “Aliya isn’t just about getting an Israeli ID number—it’s a financial crossroad. Some things stay the same, but others require careful planning.”
If you’re preparing for aliya, your financial future deserves thoughtful consideration. Schedule a free Cross-Border Financial Evaluation at profile-financial.com/call to review your portfolio and make the right financial moves before and after your move.
Douglas Goldstein, CFP®, is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional in both 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 provide tax or legal advice.
Published May 21, 2025.