A prospective client sat across from me wanting to review her portfolio. She had moved to Israel several years earlier with accounts managed by a firm in the U.S. and wanted to know if she should stay or switch to someone local.
I pulled up the statement. About half the portfolio was in equity funds and structured products linked to the S&P 500. The rest was in bonds and cash equivalents.
She paused when I mentioned the equity allocation. “I didn’t know half my money was in stocks,” she said.
Market exposure investors don’t recognize
Her late husband had built the portfolio years earlier, and she had kept it largely intact after he passed. The account had done well during the long bull market, but she had never examined what she actually owned or whether it still matched her situation.
She described herself as risk-averse. She wanted steady income to cover living expenses in Israel without worrying about market swings. Yet she had been marked as an aggressive investor on the original paperwork, probably based on the portfolio her husband had designed. No one had revisited that designation after his death or after she moved abroad and stopped working.
The structured notes sounded conservative but carried high fees, poor liquidity, and limited downside protection. If the market dropped sharply, she would still take a meaningful loss.
The mismatch between allocation and temperament
I see this pattern often among retirees and widows. A portfolio built during the accumulation phase gets carried forward into retirement without adjustment. The original risk assessment reflects a different person in a different life stage.
Risk tolerance is not static. It changes when income stops, when a spouse dies, when someone begins converting dollars to shekels every month. A portfolio that felt appropriate at 50 may feel alarming at 75.
Building a portfolio you can actually live with
We discussed what a more conservative allocation might look like. She would give up potential for outsized gains, but she would also avoid the risk of a sudden large loss that could force her to cut spending or delay plans. The goal was not to maximize returns. It was to design a portfolio she could hold through volatility without making emotional decisions that would damage her long-term security.
The best portfolio is not the one that looks optimal on paper. It is the one you can hold through a bear market without panicking. If your U.S. accounts no longer reflect your risk tolerance, income needs, or stage of life, schedule a free introductory call or call 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. Accounts carried by Pershing LLC., Member NYSE/SIPC, a subsidiary of The Bank of New York Mellon Corporation. 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 June 23, 2026.