Picture this: You step off the plane in Israel, ready to start your new life. But while you’re unpacking, your U.S. brokerage firm freezes your account since you no longer have an American address. Your retirement savings? Inaccessible. Your investments? Possibly liquidated, with a hefty tax bill attached. Rushed financial decisions before aliya can lead to costly mistakes.
The Biggest Financial Mistake Olim Make
Some olim liquidate or transfer their U.S. investments when making aliya, which can lead to large tax bills and penalties on retirement accounts. Worse, once those funds land in an Israeli brokerage, investors may find themselves with fewer options, stricter regulations, and unexpected restrictions.
For example, some Israeli firms limit American clients’ investment options, offer fewer choices than U.S. firms, or don’t provide the year-end tax forms needed for U.S. returns. A better approach? Stay flexible by keeping your assets in the U.S. and position your wealth with a long-term outlook.
Keep Your Money Working for You
Instead of making drastic changes when you make aliya, take a phased approach. Keep your U.S. brokerage accounts open so you can continue to invest in the markets with which you are familiar. Make sure you have some cash set aside—three to six months’ worth of expenses in a money market fund or short-term bond fund—so you’re not forced to sell investments at the wrong time. And, if you have a 401(k), talk to a cross-border professional about rolling it into an IRA for better control and tax benefits.
Work With Advisors Who Understand Cross-Border Finance
Investing as a dual citizen isn’t as simple as clicking “transfer funds.” There are tax rules, estate planning issues, and brokerage restrictions that need to be addressed in two countries. Some firms won’t even let you access your own money once you move abroad. That’s why you need a financial advisor who knows both the U.S. and Israeli systems inside and out.
The best way to avoid money stress after aliya? Plan ahead. A little strategy now will save you a fortune—and a whole lot of regret—later.
Not sure where to start? Get a free Cross-Border Financial Evaluation at profile-financial.com/call. Let’s make sure your investments are set up to work for you—no matter where you live.
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 December 3, 2025.