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Summer’s here! But before you head to the beach, consider the following:

Suntan lotion: The sun’s negative effects and its ability to cause skin cancer are only seen many decades later. Though your great tan might give you a “healthy” look, it could lead to your demise in the future. Similarly, the negative effects of an ill-managed portfolio may only be seen many years later. So, do your best now to protect your investments with diversification and careful planning.

Sunglasses: Put on your shades and ignore this week’s hot stock. Studies show that diversification and asset allocation, as opposed to picking an individual stock, are even more important in determining success over time. As long as you have an updated financial plan and your current investments reflect your ideal asset allocation, you can safely disregard the media blitz promoting a hot stock.

Water: Water is a basic necessity of life, just like financial liquidity is necessary to pay the bills. Make sure that all of your assets aren’t tied up in hedge funds, offshore programs, properties, or other illiquid investments. Make sure that you are able to access your funds, if and when you need them.

A lifeguard can’t save you from bad investments. Rescuing someone who is in danger of outliving his finances is difficult, if not impossible. However, a financial planner can help you before your situation gets dire. With the proper planning you can enjoy your vacation…and pay for it too!

Download a free copy of The Retirement Planning Book and devote time this summer to planning your retirement. For help managing your American retirement accounts from Israel (401(k) and IRAs), contact Profile Investment Services, Ltd. at 02-624-2788

Douglas Goldstein, CFP®, is the Director of Profile Investment Services, Ltd., which specializes in helping people who live in Israel with their U.S. dollar assets and American investment and retirement accounts. He helps olim meet their financial goals through asset allocation, financial planning, and using money managers.

Published August 3, 2015. Updated July 2019, June 2022

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