Do you offer bonds or fixed-income investments denominated in shekels?
Yes, this is managed in Israel-domiciled accounts run by Marathon Investment House.
Frequently Asked Questions
Find clear answers to common questions on taxes, investments, and financial planning for expats navigating life abroad.
Can you invest in both US and Israeli stock exchanges?
Yes.
Do you help avoid PFIC (Passive Foreign Investment Company) tax traps?
We have strategies in place to assist US client to invest in a manner that avoids PFIC taxes.
Do you offer ESG-compliant portfolios if needed?
We offer ESG-complaint investments upon request.
Are your investment strategies kosher according to halacha if I request that?
Yes; but this would be an Israel-based portfolio only.
How do you select investments for clients living in Israel?
There are three factors to consider here :
1. The client’s risk profile
2. The location of the investment account
3. Tax considerations
Can you assist with investment accounts that are compliant in both countries?
Yes, we design investment accounts in the US also for non-US citizens resident outside the United States, that aim to minimize exposure to US estate tax. For US citizens investing in Israel, we make sure that the portfolios are invested in a manner that avoid US PFIC taxes.
Do you help avoid double taxation?
The US-Israel tax treaty generally does a good job of avoiding double taxation. While we understand the basic provisions, we recommend speaking to a qualified CPA.
Can you guide me on transferring my US retirement accounts to Israel?
Yes, but we generally do not recommend doing so. You cannot transfer a US retirement account to an Israeli retirement account. Each is a separate entity to which you may contribute and then take (primarily taxable) distributions. There may also be penalties if you take money out of US retirement accounts before age 59.5. Therefore, we believe it makes sense to keep your US retirement assets in consolidated US Individual Retirement Accounts until retirement age (and often thereafter too).
Do you understand Israeli pension laws?
We have a basic understanding of Israeli Pension laws, but this is a separate filed in Israel. We refer our clients to qualified Israel pension consultants.