If you are an American living in another country, it’s important to understand your US pension plan. This guide will help you know how to manage your pension or 401(k) from abroad, whether you are in Israel, Europe, or anywhere else.

Perhaps you worked in the U.S. and saved money in a 403(b), 401(k), or other type of pension plan. Now, you live in a different country and you’re finding it difficult to manage your retirement account. One possible solution is to move your pension plan into an IRA.

Moving your pension plan into an IRA may allow you to control your money better, letting you choose different ways to invest, like in stocks or funds. Moreover, there are practical challenges, too. Sometimes, dealing with pension companies from another country can be hard, and you might not get much help.

Furthermore, it’s tricky when advisors in your new country don’t know much about U.S. pensions. Bad advice can lead to big tax problems and loss of money. You need an expert who knows about U.S. pensions and how to manage them from abroad. 

Where should you start?

First, look closely at your pension plan to see if it fits your long-term goals. If not, find a company that deals with handling U.S. IRAs for people living outside the U.S. With the right help, moving your money can go smoothly, and you’ll feel more in control of your investments.

Managing your U.S. pension from abroad needs careful planning and good advice. Stay informed and connected with financial experts who will help you make the best decisions for your money.

Financial planning is always important, but it’s especially crucial when health issues arise. A well-built plan allows you and your family to focus on health and family connections, without worrying about the day-after. How can you make sure you are setting yourself up for a smooth transition of wealth to your family?

Tune in and learn about the nuances of managing shared accounts, the pros and cons of transferring control to family members, and the critical role of clear communication in preserving both wealth and relationships. 

Some key insights:

1. Learn how to effectively shift financial authority to a trusted individual within the family, balancing legal necessities with personal dynamics.
2. Learn about the importance of transparent discussions about financial matters with family members, especially in light of health changes.
3. Discover some of the tools available, such as powers of attorney and trusts, that allow your wishes be followed.
4. Professional advice from financial and legal advisors is crucial in creating a seamless and effective estate plan that aligns with your long-term goals.

For more information, visit the show notes at https://goldsteinongelt.com/personal-finance/financial-planning-for-illness-and-death

Are You Overlooking the Importance of a Financial Plan?

When was the first time you spoke with a financial planner? Let me tell you about a retired couple who I met who had never spoken to a financial planner before. The couple's lack of understanding about the role of a financial planner and the way their investment portfolio was built, highlighted a common misconception among individuals when it comes to managing their finances.

When sitting down with a Certified Financial Planner™ practitioner (CFP®) who is dedicated to understanding your unique financial situation, and guiding you through the complexities of investing, you are setting yourself up for success. 

Building a comprehensive financial plan and working with a professional team (financial planner, accountant, and lawyer) can lead you to financial well-being. 

A few points to consider:

1. Importance of a Financial Planner: Many individuals often focus solely on their investment portfolios without considering the broader financial picture. A Certified Financial Planner™ practitioner can help guide you through essential aspects of financial planning, including retirement goals, family, expenses, insurance, and health—providing a comprehensive view of your finances.

2. Understanding Your Investments: Having a clear understanding of all your investments and their implications on your overall financial situation is crucial for proper financial well-being.

3. Partnering with Professionals: Partnering with a financial planner (and other professionals) doesn't mean surrendering control. Instead, it equips you with a supportive team who can handle administrative tasks and provide advice, while you remain in charge of making the final decisions.

4. Empowerment and Peace of Mind: When you have a strong financial team in place, it empowers you to focus on the bigger financial picture. It can alleviate concerns about making financial decisions, especially during times of illness or unexpected events, offering you and your family peace of mind.

To learn more about managing your finances and gaining a deeper understanding of the role of a financial planner, tune in to The Goldstein On Gelt Show and explore the valuable insights provided in each episode.

Remember, taking charge of your financial well-being is one of the most important steps you can take for a secure and stress-free future!

If you're not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug's free ebook The Retirement Planning Book.

Family pressure can be overwhelming when it comes to finances.  Learn how to handle those pressures correctly, allowing you to build a financial portfolio that suits you perfectly. Here are some key points discussed in the show: 1. Understand your investments: If you find yourself investing in products you don’t fully understand, seek advice from a qualified third party, such as a financial planner. 2. Address family pressures: In the face of conflicting advice from family members, it’s crucial to have an unbiased third party on your side.  3. Simplify your investments: Following the KISS principle (Keep It Simple, Stupid), opt for straightforward and understandable investments.  4. Regularly review and consolidate your investments: Consolidating and regularly reviewing your investments can bring clarity and empower you to take charge of your portfolio. 

If you're not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug's free ebook The Retirement Planning Book.

Are you considering investing in real estate? Or perhaps you already have real estate investments in your portfolio? If so, it's crucial to understand the potential risks and challenges that can arise. The following stories of two individuals who encountered unexpected scenarios with their real estate investments provide valuable insights and lessons for anyone navigating the world of real estate.

The first case revolves around a client who initially appeared to be a successful real estate investor. He exuded confidence in his portfolio, claiming lucrative real estate deals and assured cash flow from his properties. However, as time unfolded, the reality did not match his optimistic projections. Unforeseen circumstances such as the impact of external factors, including the COVID-19 pandemic, led to a drastic reduction in the expected income from his real estate investments.

One of the crucial insights gleaned from this story is the significant impact of underestimating risk and overestimating returns. The client's assumptions about the reliability and sustainability of his real estate income proved to be misplaced, resulting in unanticipated financial strain and the need to reevaluate his entire investment strategy.

The second story featured a younger client who had invested $50,000 in a real estate deal in Wisconsin. He initially contemplated withdrawing additional funds from his brokerage portfolio to invest in another promising real estate opportunity. However, after sharing the challenges faced by the first client, he reconsidered his decision. He understood the risk of putting all his eggs in one basket and preferred to stick with a more secure, diversified portfolio. 

While real estate can be a valuable component of a well-structured investment portfolio, allocating a significant proportion of one's assets solely to real estate can expose an individual to heightened risks and vulnerabilities. The allure of real estate, with its promises of passive income and appreciation, should be balanced with a comprehensive understanding of the potential downsides and the need for diversification. It's vital to approach real estate investments with prudence, ensuring that they complement a comprehensive investment strategy rather than overshadowing or dominating it.

By building a diversified investment approach and thoroughly understanding the nuances of each area of your portfolio, you can navigate potential challenges while maximizing the opportunities for financial growth and stability.

Consider conducting a comprehensive review of your investment portfolio. Assess the proportion of your assets allocated to real estate investments and evaluate how they harmonize with your overall investment strategy. 

If you're not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug's free ebook The Retirement Planning Book.

Financial planners frequently meet with folks who want to invest for growth. After all, who doesn’t want to see their portfolio grow? But, growth also means capital gains tax. Are there any investments that encourage portfolio growth but have limited tax liability? On today’s show, Doug answers a listener question about investing for growth. “Jeff” asks if there are investments that encourage portfolio growth, but have little tax liability. While an investment advisor, and not a tax advisor, Doug answers several aspects of the question:

• Are there conservative investments that offer reasonable growth?
• What are the common mistakes people make when investing for growth?
• What is the best way to minimize tax on your investment?

One way to invest for growth is through a SMA – a Separately Managed Account. Watch a short clip on What is a SMA - Separately Managed Account. If you’re not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug’s free ebook The Retirement Planning Book.

Tips for Managing Your Finances During Divorce for a Smooth Transition

Divorce can be a daunting and emotional journey, one that is fraught with legal, emotional, and financial challenges. In this post, we'll explore key takeaways Douglas Goldstein discussed on The Goldstein on Gelt Show and delve deeper into essential financial considerations when navigating divorce.

Seeking Professional Assistance

One of the most critical pieces of advice is to seek professional help when dealing with divorce-related financial matters. Consulting with an experienced lawyer is essential to navigate the legal complexities inherent in divorce proceedings. Additionally, engaging the expertise of a financial advisor is invaluable in assessing the impact of divorce on long-term financial planning.

Understanding Expenses and Budgeting

Many individuals are often unaware of the actual amount they spend every month. It's crucial to have a clear understanding of your expenses, including routine spending and potential future financial obligations resulting from a divorce. Keeping meticulous records of financial transactions, and anticipating upcoming expenses are essential steps during a divorce. These records serve as invaluable tools for financial advisors and lawyers when negotiating asset division and settlements.

Gathering Financial Information

Organizing all your financial information is paramount when preparing for divorce. This includes gathering statements from bank accounts, credit cards, retirement funds, investment portfolios, mortgages, and tax returns. Having comprehensive documentation at hand facilitates the process of evaluating assets and liabilities, thus enabling fair and informed decision-making.

Avoiding Major Financial Decisions

During times of emotional distress like divorce, making major financial decisions may seem enticing as a temporary escape. However, avoiding substantial financial decisions amidst marital discord is imperative. Big-ticket expenses like buying a new house, a car, or making substantial investments can further complicate the financial implications of divorce. Hence, refraining from significant financial commitments is vital for minimizing additional financial strain during a divorce.

Building a Reserve Fund

Creating a reserve fund is a prudent measure, especially during the tumultuous period of divorce. Accumulating cash reserves safeguards individuals from potential liquidity challenges that could arise during the divorce process. This fund can be instrumental in covering legal fees, and unexpected expenses, and ensuring financial stability during the subsequent transition.

Reevaluating Tax Implications

Divorce often carries significant tax implications, warranting a comprehensive assessment of tax responsibilities related to asset division, alimony, and child support. Consulting with a tax professional ensures a thorough understanding of the tax implications linked with divorce settlements and financial decisions.

Crafting a Long-Term Financial Plan

Formulating a robust and realistic long-term financial plan is indispensable post-divorce. This may involve establishing new financial goals, revising investment strategies, and reassessing retirement planning to ensure financial stability under the altered circumstances.

Securing Professional and Emotional Support

Navigating divorce involves not only financial complexities but also emotional and psychological challenges. A support network comprising legal professionals, financial advisors, and emotional support resources can provide comprehensive assistance during this tumultuous phase.

Navigating a divorce is a multifaceted and challenging process, particularly when viewed through a financial lens. Taking proactive steps to mitigate possible financial issues, is pivotal in ensuring a smooth and equitable transition through the complexities of divorce.

Behavioral finance is a critical area that merges psychology with finance to understand why people make irrational financial decisions. It’s important to note that people’s emotions, cognitive errors, and biases often drive these decisions, leading to poor investment choices.

Being happy while dealing with investments is crucial. Let’s examine some of the psychological aspects of investing and how they can be managed to create a better and less stressful investment experience.

Psychological Aspects of Investing

1. Analysis Paralysis

Analysis paralysis is a common issue many investors face. With countless investment options available, individuals can become overwhelmed, and as a result, they may not make any investment decisions at all. This can lead to missed opportunities and unproductive financial stagnation.

1. Fear of Missing Out

The fear of missing out (FOMO) is another psychological challenge that investors often grapple with. This fear, driven by the desire to replicate others’ financial successes, can lead to impulsive and high-risk investment decisions. Recognizing and managing this fear is essential to avoid detrimental financial choices.

1. Overemphasis on Short-Term Volatility

Another psychological challenge in investing is placing excessive emphasis on short-term market fluctuations. Reacting emotionally to daily market movements can lead to poor decision-making and can negatively impact long-term investment strategies.

1. Complexity in Cross-Border Investing

For those dealing with cross-border investments, the complexity of managing investments in multiple countries can be overwhelming. Regulatory hurdles, tax implications, and cultural differences in investment philosophies can create significant stress for expatriates and immigrants.

Managing Your Stress 

Investing your money is stressful, but it doesn’t have to be overwhelming. Managing stress effectively can lead to better investment outcomes and a more enjoyable investing experience. Here are some strategies to help lower stress and improve investment decision-making:

1. Simplification and Focus

Consolidating and simplifying investment accounts can help you gain a clearer understanding of your financial situation. By focusing on a defined investment strategy, you can avoid being overwhelmed by too many choices and better manage your portfolios.

2. Diversification

Diversifying investments is an essential strategy to spread risk and avoid excessive exposure to any single investment. By diversifying across different asset classes and sectors, investors can lower the risk of significant losses caused by a single investment’s failure, thus leading to a more relaxed investment.

3. Develop a Plan

Having a clear financial plan can help you stay focused on your long-term objectives and avoid making impulsive decisions based on short-term market movements. A well-defined plan provides a roadmap for achieving financial goals and reduces anxiety about investment decisions.

4. Build a Resilient Mindset

Engaging in stress management techniques, such as meditation, physical exercise, or taking regular breaks from financial decision-making, can promote a resilient mindset. A calm and focused approach to investing can lead to better decision-making and reduced emotional reactivity to market swings. 

5. Educate Yourself

Continuously learning about investment concepts, market dynamics, and financial planning can empower you to make better-informed decisions. Well-informed investors are better equipped to manage their financial stress and maintain a long-term perspective on their investments.

6. Choose a Good Advisor

Selecting the right financial advisor who prioritizes understanding the client’s individual needs and goals is essential. A good advisor should focus on building a personalized financial plan aligned with the client’s objectives rather than pitching investment products.

Armed with these valuable insights and tips, it’s time to implement them so you can experience a happier and less stressful investment journey.

Happy investing, and may your financial journey be filled with success and joy!

Stay updated on personal finance insights, investment strategies, and expert interviews, by subscribing to The Goldstein on Gelt Show.

Doug delves into the topic of retirement planning and financial considerations for Americans moving to Israel. He shares insights on the practical aspects of living in Israel and the financial implications of the move.

Retirement is often depicted as a time of relaxation, but as Doug reveals, many retirees find themselves busier than ever, having the time of their lives. For those contemplating a move to Israel, it's essential to have a well-thought-out plan, especially in terms of financial preparedness. To do this, it’s crucial to seek professional guidance to help you navigate the complexities of cross-border financial matters and estate planning.

What should you do now?

1. If you have questions about financial planning and moving to Israel, reach out to a financial professional with expertise in cross-border financial matters.

2. Sign up for both the Goldstein on Gelt and the Profile Investments email lists to receive valuable insights and updates on retirement planning, financial considerations, and cross-border financial matters.

By taking these two steps, you can better equip yourself with the knowledge and guidance needed to navigate the financial aspects of moving to Israel and ensure a secure and well-planned retirement.

Correction: In this episode, Doug said that you get a 10 year tax holiday in America after making Aliya, when the tax holiday is in Israel

Are you approaching the age of 73 or have inherited an IRA account? If so, understanding Required Minimum Distributions (RMDs) from IRAs is crucial. In a recent episode of The Goldstein On Gelt Show, Douglas Goldstein discussed RMDs in detail and answered a listener letter regarding RMDs for inherited IRAs. Here's a summary of the key points to help you navigate RMDs and avoid potential penalties.

What Are RMDs?

RMDs are the IRS's way of ensuring that the funds in your IRA, which have grown tax-deferred over the years, are eventually taxed. Once you reach the age of 73, the IRS mandates that you withdraw a certain amount from your traditional IRA each year. This amount is determined by a formula based on your age and the total value of your IRA at the end of the preceding year.

Inherited IRAs and RMDs

If you have inherited an IRA from a someone, you might also be subject to RMDs. In the case of an inherited IRA, the IRS requires beneficiaries to withdraw the entire amount within a specific timeframe, usually within ten years of the original account holder's death.

Penalties for Failing to Take RMDs

It's essential to stay on top of your RMDs to avoid potential penalties. For instance, failing to take your RMD can result in a 50% tax penalty on the amount you were supposed to withdraw. However, recent legislation has reduced this penalty to 25% or even 10% under specific conditions.

Donating RMDs to Charity

One strategy to potentially reduce the tax impact of RMDs is to donate the withdrawn funds directly to a qualifying charity. This can potentially help reduce your tax burden while supporting a cause you believe in.

What should you do?

Seek professional advice to ensure your portfolio complies with IRS regulations, and to make sure you are informed about any changes in relevant legislation. 

If you're living outside the United States and need personalized financial guidance, reach out to Profile Investments Services, Ltd. Profile specializes in assisting individuals outside the United States with U.S. investment accounts.

Subscribe to the Profile and Goldstein On Gelt email lists for more valuable financial tips and updates.

In "The Journey to Expatriation," we delve into the complex world of expatriation, featuring the real-life journey of a couple navigating the process of giving up U.S. citizenship.

Join Doug as he uncovers the emotional, legal, and financial considerations behind this significant decision.

Discover how this life-altering choice impacts estate planning, tax implications, and even charitable giving from an IRA.

If you've ever wondered about the intricacies of expatriation, this episode is a must-listen. Tune in to gain valuable insights and hear firsthand experiences on this compelling journey.

Reach out to Doug Goldstein at Profile Financial for more personalized advice, and make sure to give a 👍 to the “Goldstein on Gelt” show for insightful financial podcasts tailored for life in Israel.