Many Americans living in Israel have an IRA tucked away—maybe from a former job in the U.S. or inherited from a parent. But too often, those accounts just sit there, ignored. It’s important to remember that an IRA isn’t just a container for retirement money—it’s a full-fledged investment account with real potential.
An IRA Isn’t a Product—It’s a Platform
Your IRA isn’t an investment product you bought; it’s a platform—a shell that can hold all kinds of investments. You can use it to buy individual stocks, diversified Exchange Traded Funds (ETFs), index funds, mutual funds, bonds, FDIC-insured CDs, and more. In fact, almost anything you could buy in a regular brokerage account, you can hold inside an IRA.
The tax advantages of an IRA mean that some investments are more appropriate than others in an IRA versus a regular brokerage account. Strategic investors use this fact to their advantage by choosing IRA investments that align with the overall ‘Big Picture’ of their asset allocation.
What Kind of Strategy Is Right for You?
The right investments in your IRA depend on your life stage and financial goals. For some, that might mean positioning the portfolio for growth. For others, it could mean shifting toward income-generating investments or preserving capital. The good news is that IRAs are flexible enough to support a variety of strategies.
Even better, you can adjust investments without immediate tax bills, giving you flexibility as your life and goals evolve.
Make Sure Your IRA Is Working for You
Many people let their IRAs go on autopilot for years, assuming there’s nothing they need to do. This passive approach can mean missed opportunities. If you have an IRA—whether from a 401(k) rollover or an inheritance—check whether you’ve invested it in a way that fits your goals.
It might be time for an investment tune-up to ensure your IRA is properly set up. Check that your RMDs are handled correctly, your beneficiary designations are current, and whether a Roth conversion makes sense for you. Also, confirm if your portfolio includes investments—like annuities or municipal bonds—that may not be ideal for an IRA. Taking these steps can help maximize the strategic benefits of having an IRA.
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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 28, 2025.