Imagine sitting on your balcony in Jerusalem as U.S. markets drop. Instead of scrambling to sell, you sip your coffee, knowing your accounts are set up to handle whatever comes. That sense of control comes from having a plan.
Don’t Let the Market Control Your Decisions
Many Americans in Israel feel disconnected from Wall Street. With the time zone gap, U.S. market news often arrives while people here are asleep. Some ignore their accounts entirely. Others check constantly.
But following the news carefully doesn’t improve results. It often leads to emotional decisions like selling during dips or chasing “hot” stocks. One client thought she should be more hands-on. When we reviewed her portfolio, it was already diversified, rebalanced periodically, and built for long-term growth. She didn’t need to make reactive money moves; she had a plan and that gave her peace of mind.
When Caution is Expensive
A dual U.S.-Israeli client kept six figures in his checking account for over a year. “It just feels safer,” he said. But inflation had quietly eroded the account’s value. Holding cash for emergencies is smart, but beyond three to six months of expenses, large idle balances can hurt more than help. He didn’t need big risks; he just needed to give his dollars a job. For this client, the right fit was a mix of index funds for long-term growth potential and Treasuries for stability. He wasn’t chasing big returns—just making sure his money matched his goals. It gave him clarity and control.
The Hidden Risk in Local Investments
Many Americans in Israel invest locally without realizing Israeli investments may have negative U.S. tax consequences. Certain Israeli mutual funds and savings plans are classified as PFICs (Passive Foreign Investment Companies), which bring high taxes, complex reporting, and possible penalties.
One couple diligently saved in a local plan, only to cancel out all their gains with the U.S. taxes required. We restructured their savings to fit their dual status and be tax-efficient in both countries. Smart investing isn’t just about returns; it’s about the net amount that lands in your pocketbook.
Real confidence isn’t always about beating the market. It’s knowing your money supports your goals and the life you want. If you’re unsure whether your accounts are set up for cross-border success, schedule a free Cross-Border Financial Evaluation by clicking here.
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 provide tax or legal advice.
Published September 10, 2025.