Our clients have a broad range of circumstances and objectives but are unified in their desire for objective, transparent, and efficient strategies for addressing their needs. We help our clients to realize their objectives by providing the appropriate solutions in Israel, the US, and beyond.
Our clients realize that working exclusively with locally focused firms can result in a more limited perspective and set of investment options. We help our clients to access a broader range of international investments to more effectively capture global market opportunities. As an independent advisor operating in multiple markets, we are able to integrate the local and international elements of their plan, better positioning them to generate superior risk-adjusted returns.
Especially after resettling in a new country, it’s important to ensure that global equity strategies are complemented with adequate local-currency fixed income investments to meet anticipated liquidity needs.
While the currency risk associated with global equity exposures are generally less disruptive to their longer-term objective, un-hedged cash and fixed income investments can exhibit higher volatility, which is less desirable in the lower-risk portion of your portfolio.
As an example, a drop in your USD, Sterling, or Euro fixed income investments can result in an accelerated spending of your reserves to meet costlier Shekel expenses. Additional planning is required ahead of the expiration of your 10-year tax holiday. Certain strategies that you have been using may be less relevant and a new plan may be required to best position you to meet your objectives as an Israeli taxpayer.
Once you have considered your equity, fixed income and currency strategies, as a US Expat, your circumstances will likely remain complicated by virtue of your ongoing US tax reporting obligation. In particular, US retirement plan assets will need to remain in US retirement plan accounts and US tax regulations can make it much costlier to invest in Israeli investment fund vehicles. These matters require special attention to avoid significant pitfalls.