As I sit here in Israel, anticipating retaliation from Iran and Hezbollah against the Jewish people, I can’t help but feel that there is no other place I would rather be during these historic times than in our homeland.
Due to the war which began with Hamas’ attack on Israel on October 7, and given the rise in global antisemitism, particularly in North America, many Jews are expediting their plans to make aliyah or are considering doing so in the near future.
Data provided by Nefesh B’Nefesh to Israel Hayom revealed that over 1,800 olim chadashim have immigrated to Israel from North America since October 7, and more than 10,300 have applied to begin the aliyah process. This marks a 76% increase compared to the same period last year. The primary reasons cited are Zionism, the war and rising antisemitism.
For those considering aliyah, careful financial planning before the move, along with consulting local professionals in the areas of investment management, insurance and taxation, can be the key to a smooth transition rather than a stressful one. As a specialist in cross-border planning, I recommend prioritizing two critical areas first: income and cash flow, as well as savings and investments.
Are you retired, planning to keep your U.S.-based job, or seeking new employment in Israel? The answer to this question is vital in shaping your quality of life after aliyah.
Take the time to research the monthly budget you’ll need to live comfortably. Additionally, explore the housing market to decide where you want to live and what you can realistically afford.
If you are retired or nearing retirement, many important questions emerge about how your hard-earned nest egg will be treated from a tax perspective in both Israel and the U.S. I strongly recommend consulting with an Israel-based CPA who can offer the right guidance on your U.S. investments, as well as a financial advisor who is knowledgeable about tax issues specific to Israel.
Moreover, as a result of becoming a non-resident, many U.S.-based financial advisors may no longer be able to serve you due to compliance issues. It’s worth considering an Israel-based financial advisor who is licensed to offer investment management services for Americans. Look for someone with local expertise who can guide you on investment options in Israel that are suitable for U.S. taxpayers which can complement your other investments.
For example, consider Sarah*, who recently inherited $1.3 million from her late father. Her funds were spread across five different accounts at two well-known custodians, Schwab and Fidelity. However, since she is a non-resident, these institutions refused to allow her to maintain her accounts with them. I assisted her in consolidating those five accounts into two, and opened new accounts using her Israeli address at one of the largest U.S.-based custodians. I then designed a portfolio tailored to her goals and needs, and helped reorganize all her Israeli-based investments, insurances and pensions, applying a holistic financial planning approach.
Making aliyah is more than just a physical and spiritual move; it requires thoughtful and strategic planning to secure your financial future. By addressing key areas such as income, cash management, savings and investments, and understanding the tax implications in both Israel and the U.S., you can lay the foundation for a stable and prosperous life in your new home. Working with knowledgeable, locally based professionals who understand the intricacies of cross-border financial planning can make all the difference in achieving your financial goals. With the right guidance, your transition will be less overwhelming and smooth, allowing you to focus on building your new life with confidence and peace of mind.
We are excited to welcome you home!
Aaron Frolich is the founder of Green Peak Advisors. He specializes in helping Olim with cross-border financial planning and investment management, guiding clients through the complexities of managing finances between the U.S. and Israel. He is a Certified Financial Planner (CFP) and licensed investment advisor with the Israel Securities Authority. Mobile: +972-54-320-8077. Email: [email protected] Website: www.greenpeakadvisors.com
