A woman in her early 80s called for a financial planning discussion along with her son. She lives comfortably in Jerusalem, managing expenses from Social Security, Bituach Leumi, and a pension from her time as a teacher. Her American accounts had been scattered across a few financial institutions for years, untouched and slowly leaking value she didn’t realize she was losing.
She wanted help consolidating and simplifying things from Israel. But when we walked through the numbers, a different issue surfaced: one account holding a large balance was earning almost nothing in interest. Over the years, that gap had cost her tens of thousands of dollars in forgone income.
She hadn’t made a mistake. She simply hadn’t revisited decisions made years earlier, when her circumstances were different.
Why scattered accounts cost more than convenience
Americans living in Israel often maintain multiple U.S. accounts opened at different life stages. An IRA from a former employer, a brokerage account set up decades ago, a bank account kept active for deposits. Each served a purpose at the time, but over the years, the structure stops making sense.
Large cash balances sitting idle lose purchasing power. Duplicate fees add up. Without regular oversight, portfolios drift away from appropriate risk levels. And when accounts are spread across financial firms, asset allocation becomes harder to manage, tax efficiency suffers, and opportunities to improve income go unnoticed.
In many cases, clients assume that because nothing has gone wrong, everything is fine. But inaction has a cost, and it compounds over time.
When income matters more than growth
This client had significant savings, but her goal wasn’t to maximize returns. She wanted security, the ability to help her grandchildren, and peace of mind knowing her assets were accessible.
For someone in her situation, earning reliable interest on cash reserves makes a real difference. Moving a large balance into higher-yielding FDIC-insured deposits could generate thousands of dollars annually. The insight wasn’t about complex strategies. It was about recognizing that her financial structure no longer matched her priorities.
Over time, small inefficiencies erode flexibility. Addressing them doesn’t require dramatic changes. It requires periodic review and the willingness to update old decisions.
If you’re managing U.S. accounts from Israel and haven’t reviewed your structure recently, it may be worth a closer look. Schedule a free introductory call or contact our office at 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 30, 2026.