When an American oleh met with me recently, he shared a concern I hear all the time: “How do I keep my U.S. investments safe in these unpredictable markets?” Like many olim, he wanted his portfolio to grow without being impacted by market movements. This led us to discuss a key strategy that can make all the difference for cross-border investors: asset allocation.
Growth or Security… Or Both?
I explained that asset allocation is more than just diversification. It’s about tailoring a plan that fits your personal needs, whether you’re focused on growth, generating income, or protecting the real value of your assets. My client had both income and long-term savings goals, so we explored a balanced approach. We allocated a portion of his portfolio to growth-oriented assets, like stocks, while setting aside a stable part in FDIC-insured CDs (certificates of deposit in U.S. banks) and high-quality bond funds for more predictable income and liquidity. By spreading investments across asset classes with varying risk and return levels, he was able to meet immediate needs while aiming for future growth.
Living in Shekels, Investing in Dollars
One unique challenge for olim is currency risk. Many earn and spend in shekels, but their investments are held in dollars. This mismatch means that fluctuations between the dollar and shekel can impact real purchasing power. To address this, I pointed out that by living and working in Israel—owning a home and having pensions and savings like Keren Hishtalmut—he already had significant shekel exposure. Together, we worked to find the right balance, periodically reviewing currency exposure to ensure it aligns with his investment goals.
Smart Steps for Financial Control
Before we ended our meeting, I reminded him that asset allocation isn’t set in stone—life happens, and your plan needs to adapt to it. Regular check-ins and small tweaks keep your investments on track. He left with a clear, balanced strategy, confident that his money is working for him no matter what life throws his way.
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Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd.
He is a licensed financial professional both in the U.S. and Israel.
Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
This article was written in cooperation with Profile Investment Services, Ltd.