A client called recently to review her accounts. She and her husband are both in their sixties. She still teaches full-time, and he’s retired. Their combined Israeli pensions are modest. They own their home outright and live simply. She wanted to know if they would be okay.
Their U.S. account held over $700,000 in Certificates of Deposit (Bank CDs) structured as a ladder, spread across different maturities so a portion came due every six months. No stocks. No aggressive strategies. She had been treating this account as her pension. She wasn’t interested in taking on risk. She just wanted to know if what they had would last.
When the investment account becomes the pension
For many Americans living in Israel, Social Security either doesn’t exist or provides only minimal income. U.S. employer pensions are rare. Israeli pension savings may be modest, especially for those who made aliya later in life. When that’s the case, the investment account becomes the pension. And when the account is their pension, the tolerance for mistakes drops to nearly zero.
I’ve worked with many couples in this situation. The question they ask isn’t how to maximize returns. It’s how to make sure the money lasts. When the answer determines whether you can stay in your home or continue living independently, the strategy changes entirely.
Why a CD ladder works for people who can’t afford to be wrong
A CD ladder spreads money across deposits with staggered maturity dates. Periodically, one CD matures, providing access to cash without selling anything or locking up the entire portfolio for years. This strategy offers relatively predictable income, principal protection through FDIC insurance, and flexibility to adjust as conditions change.
For retirees living on a fixed budget, this structure does something more important than optimizing yield. It removes sequence-of-returns risk, the danger that a stock market downturn early in retirement forces you to sell investments at a loss just when you need the money most. When your portfolio is your pension and you have no room for error, that protection matters more than chasing higher returns.
If you depend on a U.S. account to fill an income gap, your situation may warrant a closer look. Schedule a free introductory call at profile-financial.com/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 September 29, 2026.