Moving to a new country can be overwhelming, with many items to take care of –  even more so when moving to Israel from the US. 

Before we get started, we’ve written these blogs about moving to and living in Israel which you may enjoy.

What to do when you get kicked out of your US brokerage account

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!

Yes, there are organizations that assist with the physical move and the bureaucracy. But one still has to prioritize the financial aspects. 

We assist people with their financial Aliyah, and the first thing we discuss is what needs to be done now, and what can be taken care of later. 

Stage One: Before the move (Pre-Aliyah)

Make sure that your financial institution can accept an Israeli address and provide service once you have moved overseas. This is relevant for your bank account, as well as your investment and retirement plans. 

Many custodians will no longer hold assets of non-US residents, including with limited exceptions Merrill Lynch, Morgan Stanley, Wells Fargo, UBS, Raymond James, JPMorgan Chase and others. Bank of America and Fidelity may retain existing accounts with some limitations on purchases. 

Some people retain US addresses, but this is not advisable unless you continue to run an active business there. 

Also, while some institutions may allow you to continue to hold your assets with them, their customer service may not be set up to make outgoing calls overseas. Many are using BOT or AI options prior to allowing you access to a human representative. 

You also want to make sure that you can wire money easily and cheaply overseas. For Israel, we recommend exchanging from US dollar to shekels in the US and sending the shekels to Israel.  In our experience, the banks here accept shekels more readily – but more on this later. 

Also, have at least six months’ worth of living expenses readily available. 

Stage Two: Arrival in New country 

First, open a bank account at an established local bank. In Israel, only residents can open new bank accounts. 

Once the account is open, and you have a local debit card, arrange for a transfer of currency from the US. Ask the local bank what requirements they need from you in order to prove that the US account is yours and that the source of funds is legitimate. 

Israel is very strict about anti-money laundering policies.

Stage 3: For later

Consider the following: 

1. Consolidating retirement accounts with a custodian which accepts non-US addresses. 

1. Adjusting one’s will to account for assets and circumstances related to the country you are moving to. In Israel, an Israeli will can govern most US assets. 
2. Deciding whether you need to change your US CPA to a firm that understands filing requirements for non-US residents.
3. Choosing where and when to begin US social security payments (if applicable).
4. Determining a policy with regards to distributions from your US retirement accounts. The most tax-efficient sequence of withdrawals can be different than in the US.
5. Considering sitting down with an advisor who specializes in cross-border financial planning to plan for your future. 

Are you considering Aliya?

We recommend speaking with financial planning experts to plan for a smooth transition as you make Aliya. For more information, feel free to contact us through our website, www.nardisadvisors.com

We are expat financial advisors located in Israel and the US, serving expats globally.

If you are moving to Israel or another country and don’t know where to start when it comes to the financial side of things, or hold US or foreign assets and need help figuring out your retirement as an expat, please contact us.

Have questions about retiring in Israel? We’re having a series of webinars on this topic. We’re also publishing blogs on this subject.

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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.