Avoid These Common Mistakes When You Receive an Inheritance

A new client recently told me, “My late father left me an inheritance of an IRA (Individual Retirement Account) worth $1.5 million, and I’m the sole beneficiary. What should I do with it? If I bring the money to Israel, I’ll have to sell the stocks and wire the money to my account here…. Read more

A Guide to the Tax Implications of a Legal Settlement

This is a two-part article addressing questions that arise when people receive lump sums. For the entire article, click here
I recently helped a number of people who are in the midst of receiving a cash settlement from a lawsuit, and had to point out that winning a lawsuit is not “free money.” In addition to having survived personal injury and a long-drawn out legal case,… Read more

Do U.S. Citizens in Israel Pay Tax to the IRS on a Legal Settlement?

This is a two-part article addressing questions that arise when people receive lump sums. For the entire article, click here.
If you’re a U.S. citizen who recently received proceeds from a legal settlement, be aware of any possible tax requirements, as these can directly affect your retirement and estate planning…. Read more

How to Avoid Tax Mistakes When You Receive an Inheritance

When receiving an inheritance, it’s important to avoid making tax mistakes. Certain tactics, such as opening a U.S. brokerage account (see below for an interactive tool) can help. Watch out for these mistakes:
Mistake #1 – Taking money out of an IRA
To maintain the tax-deferred status of an inherited IRA (Individual Retirement Account),… Read more

What To Do If You Can’t Buy U.S. or Israeli Mutual Funds

Since Americans living abroad are frequently denied the opportunity to buy mutual funds, how can investors diversify their portfolios without being responsible for the day-to-day management of dozens of individual stocks and bonds?
One possible answer is a separately managed account, or SMA. An SMA is a customized portfolio offered by a brokerage firm and managed by an independent investment management firm or money manager…. Read more

What Tax Might Take 40% of Your Assets One Day?
Estate Planning

Careful planning addresses two major points: what happens to your money while you’re alive, and what happens to your money after you pass away.
In my work as a financial advisor helping Americans who live in Israel with their U.S. investments, I see many who neglect the second aspect, estate planning…. Read more

Do Americans Need to Report Rental Income From Foreign Property?

Do Americans need to report rental income from foreign properties to the IRS?
The answer is yes. American citizens must include all earned income regardless of its source on their American tax reports. Additionally, if foreign rental income is paid into a non-U.S. bank account, depending on the bank account’s balance,… Read more

Three Money Messes to Avoid
low interest rates

Events beyond anyone’s control can adversely affect the retirement savings plans of even the most careful savers. Here are three potential money messes that may be inevitable and unavoidable, but by controlling your response, you can minimize their potential damage to your investment portfolio.
An increase in taxes
No matter what your political standpoint,… Read more