A Record Year for NBN Aliyah: Financial Tips for Olim

As originally appeared in The Jerusalem Post on August 13, 2021.

In this week’s Torah portion we read the famous verse, “Righteousness, righteousness you shall pursue so that you will live and take possession of the land that Hashem, your G-d, gives you.” [Shoftim 16:20]. Many commentaries are bothered by the double usage of the word ‘Tzedek’, Righteousness. Rabbi Yissocher Frand quotes Rav Elya Meir who says “the pursuit of righteousness must also be pursued with righteousness. We are not merely being taught to run after justice. We are told to run after justice with justice.”

Rabbi Frand adds, “Many times we pursue that which is righteous and fair. Our goal is to ensure that what is right prevails. We are often tempted to let the ends justify the means. We may overlook the fact that we have to step on a few laws here and there as long as in the end “righteousness will prevail.” We know unfortunately how many times throughout history the pursuit of justice was carried on with unjust ways. This has caused terrible destruction. The message of our verse is that we may not overlook unscrupulous methods to achieve lofty goals. Righteousness must be pursued with righteousness. Achieving Tzedek in any other way is not Tzedek.”

With almost all media focused on whether or not we will be locked down for the holiday season, who would imagine that record numbers of North American Olim are coming to ‘live and take possession of the land.’ Kudos to both Rabbi Yehoshua Fass and Tony Gelbart for having created an amazing organization and a culture of Aliyah, and lots of credit to the dedicated Nefesh B’Nefesh staff for all their hard work in executing the vision, especially with all the hurdles presented by corona. Over 5,000 olim are expected to make Aliyah in 2021, which is around 40% higher than an average year. Multiple flights a week are landing with over 1,000 olim coming in August alone! To give up the good life to “live the dream” especially during a global pandemic, is amazing. Kol hakavod to all the olim.

Reality check

While we are all sharing part of something bigger than each individual, i.e. building the Jewish state, we also have to eat and pay the gas bill. As I have written previously, “Along with a new culture and language comes a new financial reality. From my experience as a financial adviser the one issue that gets lost in the immigration process, is how to deal with finances. Getting acclimated to a new community, finding employment and helping children get settled in school are top priorities. That being said, working with immigrants regularly, I can give a tip and that’s to not neglect your finances.”

Here are a few ways to make your financial aliyah smoother.

Brokerage accounts

If you have brokerage accounts in the US make sure that the firm you have been working with will still service your account in Israel. Just recently, Wells Fargo became the latest in a long line of firms that have sent out letters telling clients that they need to transfer their accounts, due to clients’ foreign (non-US) addresses.

Don’t neglect IRAs (Individual Retirement Account) or 401k plans. Don’t think that since this money is for retirement there is no sense in worrying about the money now. Too often I have met with individuals who did just that and then as retirement approaches and they start planning they notice that the account value is the same as when they made Aliyah. Ignoring investments can be costly.

Learn from others

You are not the first person to make Aliyah. Speak to people who have already done it and tap into their experience. There are a lot of online resources available, use them. They have great information about which healthcare provider to sign up with, financial benefits that you receive, and which bank you should open an account with. Piggyback the legwork done by others. Chances are that your questions have been asked many times, and the answers are available with a click of the mouse.

Very important note regarding bank accounts which is not just applicable to olim. Make sure that you sign the ‘Arichut Yamim’ clause, so that in the case of death of a spouse, the account doesn’t get frozen. I have met with too many widows and widowers who never knew about this and in their time of immense grief learned that they had virtually no access to their money until their estate went through the probate process.

Living a dual currency life

If you are still being paid in US dollars or plan to live off of your dollar-based investments it’s imperative to have money in shekel to use as a hedge. Shekel strengthening can adversely impact your revenue stream and even put your aliyah in jeopardy. Over the last few years the shekel has been one of the world’s strongest currencies. Because you are now living in Israel, you need to preserve the purchasing power of your money in shekel terms.

Welcome to Israel!

The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.

Aaron Katsman is the author of Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing (McGraw-Hill), and is a licensed financial professional both in the United States and Israel, and helps people who open investment accounts in the United States. Securities are offered through Portfolio Resources Group, Inc. (www.prginc.net). Member FINRA, SIPC, MSRB, SIFMA, FSI. For more information, call (02) 624-0995 visit www.aaronkatsman.com or email aaron@lighthousecapital.co.il.