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A Roth IRA is an incredible US retirement account that lets you invest every year and watch your money grow — completely tax-free — for life. It’s easy to manage, can be opened with little to no fees, and offers powerful long-term benefits. But what happens if you make Aliyah? Will Israel agree that it … Read more
Over the last decade trillions of dollars have flown into automated wealth management platforms all over the world. The basic idea is that technology can help anyone, regardless of how much money they have, get access to a low-cost, globally diversified passive investment portfolio that is automatically rebalanced. Given the abysmal results of the overwhelming … Read more
The information contained in this article is for general educational purposes and should never be viewed as specific investment, tax, or legal advice. In January 2017 the Israeli government opened an account for every Israeli child under 18 (“חיסכון לכל ילד“). Since then, money has been deposited in to these accounts each month and all … Read more
The year was 2018. I was working in hi-tech and earning well. My wife and I smartly decided to open an Israeli investment account. I had recently learned about a new product called Kupat Gemel Lehashkaa (KGL). It sounded incredible (hindsight: it isn’t ideal for most): tax-free investing, deposits of up to 70,000 ₪ per … Read more
Welcome to your one-stop shop for everything you need to know about Keren Hishtalmut. Keren Hishtalmut (KH) is a great tax-free investment account, available to many employees (at the employer’s discretion) and to all self-employed individuals. Contribute the maximum you can to it (though read on for self-employed US citizens). Optimize your fees, think carefully … Read more
In 2007, Israel expanded the tax benefits for new immigrants to Israel. New Olim (and qualifying returning residents) are entitled to a very significant tax benefit when they move to Israel – an exemption for ten years on reporting and paying taxes on all non-Israeli sourced income. The practical ramifications of this law confuses many … Read more
This article is based on a paper by Nick Maggiulli of Virtus Investment Partners. Past performance is not indicative of future results. This is not investment advice, is for general purposes only, and does not take into account your individual needs, investment objectives and specific financial circumstances. Let’s say you want to invest and can … Read more
Navigating multiple financial systems effectively has always been a challenge to contend with for those of us who move to Israel. The good news is that innovation and competition are leading to simpler and more cost-effective solutions to some of the common money-management obstacles many of us Olim face. Advancements in financial technology are making … Read more
Since starting this blog, I’ve received many thoughtful questions about the financial challenges Olim face. One topic that comes up repeatedly is how to think about bonds within an investment portfolio. Should Israelis be buying shekel-denominated bonds or U.S. dollar bonds? And how should Americans in Israel approach Israeli bonds while avoiding the PFIC tax … Read more
Many Americans living in Israel want a better understanding of the investment options available to them beyond employer-sponsored retirement and pension plans. Confusion around this topic is compounded by the PFIC issue—discussed in more detail below—which makes many Israeli investment and savings vehicles poor choices for Americans. This article focuses specifically on the relatively limited … Read more