One of the most common financial problems Americans living in Israel face is when their U.S. investment company closes their account because of their Israeli address.

There is no legal reason why you can’t have an Israeli address on American brokerage and IRA accounts. In fact, while some investment companies balk at your foreign address, others have no problem. (My company, Profile Investment Services, Ltd., specializes in dealing with people who live outside the United States but still want to have their investments held in America.)

This issue can affect you even if you don’t have an American investment account

Often, clients initially call my office when they receive an inheritance from a family member in America. American brokerage houses are used to domestic business, and dealing with foreign addresses is difficult for them. Other than the time difference, there’s often a difference of culture. Most American financial advisors don’t have foreign clients and aren’t familiar with the basics of cross-border investing, dual tax codes, and international retirement planning. I’ve even seen cases where foreign clients are given incorrect forms, which can create all sorts of problems. For example, American citizens living abroad should sign a W-9 form, not a W-8BEN, even if they have a foreign address.

What forms are needed?

As a cross-border investment advisor who specializes in helping people living in Israel with American brokerage accounts, I recognize the need for easy-to-understand information on how to manage U.S. investments from Israel.  I created an interactive tool to clarify the forms you need to sign when opening an account and which investments you can buy.