We serve retirees, inheritors, olim (immigrants to Israel), divorcees, professionals, widow/widowers, dual citizens, and more.
Here is a sampling of how we help people with different needs and goals. If you’re not sure if you fit into one of these categories, but you have investment questions, feel free to be in touch to see if we can help you. Click below to see how we assist each of these different groups.
Ideally, retirement planning begins decades before R-day, but that doesn’t always happen. A recent retiree came into the office carrying pension plan and kupat gemel reports along with investment and bank account statements. He said, “I’ve totaled up all my money, and I see that I’m rich. I’d like to make gifts to my grandchildren so that they can buy homes.” We explained that although the sum of his total assets seemed rather large on paper, before he begins giving away his money, he had to make sure he and his wife would be fiscally secure without it.
We compiled a financial plan, taking into account the possibility of medical bills in the future, and re-aligned his investments to give him a secure income stream. Monte Carlo simulations showed that he would be financially secure even if he gifted assets, so we opened accounts for his grandchildren and were able to educate them about how to best use the unexpected financial windfall.
A middle-aged oleh (immigrant to Israel) approached us after he inherited an Individual Retirement Account (IRA) from his father. I discussed with him the advantages of leaving the account in America (rather than moving his entire inheritance to Israel) and helped him open the proper account (called a “beneficiary IRA”). This account allows him to get income from his inheritance and let it grow for him tax-deferred in America, so he can leave his own legacy one day.
Frequently one spouse is more involved in the running of the family finances than the other. What happens if you are a surviving spouse who isn’t familiar with the family finances? I help widows/widowers understand their new situation and organize the new money realities they face.
A woman came to us after her husband died. He left a sizeable estate, but since he was in charge of the family finances, she wasn’t sure how to proceed. Furthermore, since she had focused on the family and volunteer work, she didn’t have a pension or bituach minahalim (Israeli pension plan).
We helped her understand how her assets were currently distributed, assisted her in clarifying her goals and risk tolerance, and then together we worked to create a financial plan and buy the investments that would provide her with the income and sense of security she wanted and needed.
Watch this video for more information about the financial steps widows/widowers need to take.
A teacher in the New York City public school system made aliya with Nefesh B’Nefesh.
After she sold her American house, she came to us to invest the proceeds. We rolled over her 401(k) and 403(b) plans into an IRA, and we designed a portfolio that would provide her with regular income until she began employment in Israel.
Later, after she started working and set up an Israeli pension plan, we helped her determine how her Israeli pension and savings plans (bituach minahalim, keren hishtalmut, and keren pensia) fit into her asset allocation model.
We also taught her about currency risk, since she lives and earns in shekels while the majority of her investments are in dollars.
A woman came to us after an unexpected divorce. To complicate matters, the family was deeply in debt.
After going to a budget counselor, she gained focus on where she could cut spending. Armed with a budget, we created a financial plan that accounted for her returning to the workforce and setting aside money in an emergency fund for unexpected expenses.
We worked together to project future needs, and discussed the necessity of careful spending now even though she felt rather certain that an inheritance windfall would come her way in a decade or so. Even more important than creating a financial plan was the fact that we helped her understand the repercussions of all the financial decisions she was making.
The Professional Couple
A couple in their early 50s came to us in order to begin their retirement planning. They both worked and had pension plans through work. They were considering early retirement, but understood that if they wanted to give their children large cash gifts (in order to pay for weddings and apartments), they might need to work longer.
We discussed prioritization, and the couple listed their financial goals and the lifestyle changes they might need to make in order to realize their objectives. We created a financial snapshot of all their current and future expenses, income, and goals, and then analyzed several different possible portfolios and spending models to create sustainable spending and income levels.
The couple decided that although early retirement sounded nice, they would prefer to work for a few more years and be able to support themselves and their children in the manner they wished.
The Dual Citizen
A client received a lump sum distribution from a U.S.-based trust and was required to file tax returns in two countries. We worked with him and his accountant to structure the portfolio to produce income for him on which to live, as well as be tax-efficient in two jurisdictions.
We help dual citizens plan for currency risk and global diversification. When preparing a financial plan we are happy to talk with clients’ tax and legal professionals about the potential tax implications of leaving inheritances in different countries.
Dual citizens have special needs due to the different tax codes in multiple countries. U.S.-based brokers may not know the questions to ask about the Israeli tax code. Our on-the-ground presence and years of experience means that we know the questions to ask…and can direct you to the answers.
Additionally, having a U.S.-based brokerage account makes it easier for American citizens to comply with Uncle Sam’s reporting requirements on assets held abroad.
Call us and let us know how we can help you! 02-624-2788 or toll-free from USA: 1-800-327-6179