Money moves emotions, and nothing seems to stir those emotions more than exchange rates.

Lately, many of my American clients eyeing a move to Israel, or preparing to transfer funds here, are alarmed by the shekel’s recent rally. A year ago, the dollar hovered around ₪3.60–3.70. Today, it’s near ₪3.09. That’s a 15% appreciation of the shekel in a short window.

It’s understandable to feel hesitant. Some are delaying Aliyah. Others are holding back large dollar transfers. After all, no one wants to “lose” 15% on day one.

But here’s what I tell every client: take a breath, zoom out, and look at the full picture!

Before we jump in, here are some of our published blogs and resources about moving to and living in Israel that you may find helpful:

Can one use a US Power of Attorney in Israel, (and vice versa)?

Immigrating to Israel

A guide to retiring in Israel

Checklist for moving to Israel

A guide to investing abroad

Israel expat case studies

Social Security for expats

Financial planning for US citizens living abroad

Selling a house in Israel as a US citizen

Why US Expats should look before they leap into a Roth 401k

Compliance with reporting of foreign assets: tips for US expats to avoid stress

What expats need to know about Brokerage Accounts for non-US residents

And now let’s get into the blog!

1. Exchange Rates Are Just One Piece of a Bigger Puzzle:

Yes, currency matters, but often, far less than you think.

If you’re investing in stocks, for example, it doesn’t always matter what currency the stock is listed in. Dual-listed companies (like Teva or Elbit Systems, traded in both New York and Tel Aviv) adjust their prices daily to avoid arbitrage. If they didn’t, traders would buy in one country and sell in the other for guaranteed profits. Markets are too efficient for that.

Example: If a stock trades at $100 on the NYSE, and the exchange rate shifts, the shekel price on the TASE will automatically reflect that change to stay in sync.

So whether you buy in dollars or shekels, your underlying exposure is often the same. The bigger question is what you invest in, not just where.

2. U.S. Social Security and Tax Planning Can Cushion the FX Blow:

If you’re receiving U.S. Social Security, you’re in luck: Israel does not tax these benefits.

Combine that with the U.S. standard deduction for couples over 65, currently around $45,000, and you may find that your first $90,000 to $100,000 of income is essentially tax-free.

Let me illustrate:

• A retired couple receives $40,000 in Social Security.
• They also draw $40,000 from retirement savings.
• Thanks to tax treaties and standard deductions, their effective tax bill may be zero in both countries.

That’s not something a 15% exchange rate dip can erase.

3. Imported Goods Are Now Cheaper in Israel:

Here’s a silver lining: a stronger shekel means imported goods cost less in local terms.

Electronics, appliances, cars, and certain foods, anything priced globally in dollars or euros, is now more affordable in Israel. Your NIS goes further.

Example: A washing machine that was $1,000 at ₪3.70 would have cost you ₪3,700. At ₪3.09, that same $1,000 purchase now only costs ₪3,090. That’s a savings of ₪610, or roughly $200.

4. Anchor Your Finances in Local Income:

If you plan to work in Israel or own a local business, your income will be in shekels. That means you’ll spend what you earn, no conversions necessary.

The key here is alignment. If your lifestyle is NIS-based, worrying about the USD/NIS rate is like obsessing over gas prices when you take the bus.

Build your financial plan around your future cash flow, not just your current exchange risk.

5. Real-Time Cost of Living May Surprise You:

During my last trip to the U.S., I popped into a grocery store and paid $3.65 for a loaf of bread. That same loaf in Israel? About ₪9.61 (roughly $3.11). Add in healthcare costs, insurance premiums, and college tuition, and suddenly, America doesn’t feel so “cheap.”

When the dollar falls and U.S. prices rise, the gap narrows. Sometimes, Israel even wins.

So before you freeze over a currency shift, do a side-by-side cost of living check. Real numbers, not just headlines, often reveal a more balanced story.

6. Nutrients Don’t Have to Cost You Anything:

This part’s a little less conventional, but very Israeli.

If you’re worried about squeezing every shekel, there are ways to live well that don’t cost a cent. Case in point? I’m currently attending a foraging workshop. Yes, foraging. Wild herbs, edible plants, and seasonal greens; free, nutritious, and surprisingly delicious.

(Plus, it’s an unbeatable metaphor for what moving here teaches you: resourcefulness over perfection.)

Conclusion: Focus on the Fundamentals!

The shekel’s strength may feel discouraging right now. But here’s the truth:

• Taxes and retirement rules often save you more than currency shifts cost you.
• Your lifestyle and income sources matter more than short-term exchange volatility.
• Israel’s real cost of living may surprise you, especially after a visit to Costco or CVS.

As with any major move, Aliyah is more than a spreadsheet decision. Currency is just one factor among dozens: community, career, schooling, healthcare, and yes, your values.

My advice? Don’t let a 15% exchange rate stop a 100% life change. Plan wisely, get local advice, and remember: markets fluctuate. Your future shouldn’t.

How Nardis Helps You See Beyond the Exchange Rate:

At Nardis Advisors, we understand that Aliyah isn’t just a move, it’s a financial, emotional, and strategic transition. 

Our cross-border expertise helps American families navigate the nuances of Israeli residency, tax planning, investment positioning, and currency timing with clarity and confidence. 

Whether you’re weighing when to transfer funds, how to budget for life in Israel, or what investments make sense in a strengthening shekel environment, we’re here to help you make informed decisions, grounded in experience, not emotion. 

Let us walk with you, every shekel of the way. Book your complimentary 15 minute consultation today.

Have questions about retiring in Israel? We’re hosting a series of webinars on this topic and continuing to publish educational blogs, please sign up for the Nardis Advisors newsletter to stay informed.

We’re financial advisors for expats, both in the U.S. and in Israel, and can help you plan your transition wisely. Whether you’re balancing U.S. assets, managing remote income, or figuring out healthcare and retirement, we’ve helped dozens do just that.

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Disclaimer

Nardis Advisors LLC (“Nardis”) is a Registered Investment Advisory Firm regulated by the U.S Securities and Exchange Commission in accordance and compliance with applicable securities laws and regulations. Registration does not imply a certain level of skill or training. Nardis does not render or offer to render personalized investment advice through this medium. The information provided herein is for informational purposes only and does not constitute financial, investment or legal advice. Investment advice can only be rendered after delivery of the Firm’s disclosure statement (Form ADV Part 2) and execution of an investment advisory agreement between the client and Nardis.