Are you looking for a more effective strategy to safeguard and grow your wealth? Successful investors have been acquiring offshore bank accounts and gaining international exposure for centuries. For wealthy U.S. families seeking better methods to protect their hard-earned nest eggs from rising inflation and market volatility, Swiss investing is a celebrated strategy. Swiss and other European investments provide international diversification that high-net-worth families seek.
An international wealth management firm like LFA provides highly customized and practical portfolio diversification with a multigenerational approach.
Refresh your money mindset with what it means to invest with a sense of responsibility in this quick video.
Learn how precise a Swiss-made investment plan can be through this eBook: Private Wealth Management in Switzerland and throughout this guide.
The topics covered here will explain why Switzerland is a powerhouse in wealth management and how international investments contribute to enhanced portfolio diversification and stability:
- Are offshore accounts legal for Americans? Swiss banking explained
- How the U.S. dollar affects your retirement plan
- Where international families invest their wealth
- The safety of wealth management in Switzerland
- The precision of a Swiss-made investment plan
You might be wondering if a Swiss investment strategy is suitable for your family’s wealth. It may help to know:
- Investing abroad gives you access to global markets.
- Switzerland has a high level of Foreign Direct Investments (FDIs), unlike other countries.
- You don’t have to be a citizen of the country to invest there.
- Your investment options are not limited to just Swiss investments.
Is it Legal to Have a Swiss Bank Account?
The legality of Swiss bank accounts should never be a concern. Any cinematic-fabricated idea can be laid to rest once and for all.
A Swiss bank account is 100% legal. There is no use attempting to launder money or evade international sanctions. Swiss banks are required by Swiss law to understand the origin, destination, and purpose of large entries/debits of investor accounts.
Just like Guillermo and Olivia, a Miami, Florida-based couple, to maintain legality, you need to declare your offshore bank account(s) to your home country. This means reporting any offshore account(s) to the IRS even with zero Swiss tax requirements.
Explore the benefits of banking in Switzerland. Unlike traditional banking, private banking is a customized service many high-net-worth individuals prefer.
A professional fee-based Swiss wealth manager will cover detailed specifications so you feel fully informed and confident.
Why You Should Invest in Switzerland
Did you know that Switzerland is considered the world’s most prominent hub for wealth management? International investing is a practice that savvy investors have utilized for quite some time now. You should consider Swiss investments as part of your wealth-building strategy because Switzerland is:
- Supportive of confidentiality and privacy
- A global competitor in research and development
- One of the top affluent landlocked countries worldwide
- One of the top progressive free economies in the world
- Neutral in global politics (which makes them a safe haven)
Switzerland is a conservative environment for investors with a robust economy, low national debt, and growing technology. It provides some of the highest global security levels. Staying out of international conflicts helps maintain a low interest rate.
Consider six compelling reasons why you should work with our team at LFA, a leading wealth management firm headquartered in Zurich, Switzerland.
How Does a Weak U.S. Dollar Affect My Retirement Plan?
With the unstable value of the current U.S. dollar, wealth-minded professionals are exploring international investment opportunities because their retirement funds are vulnerable here at home. A misunderstanding is that a strong dollar is always good, and a weak dollar is bad. Both can potentially lead to investment opportunities.
As you know, high inflation in the states generally creates more harm than help. As the cost of living increases, saving and growing your retirement funds can become more challenging.
That’s why overseas investments and currency diversification should be sought-out, to protect your nest egg against an unstable U.S. dollar and inflation. Diversifying your portfolio reduces the amount of risk you are exposed to in order to maximize your returns. You can become more resilient as your assets are safe from crises as they arise.
Let’s say all you have is cash for retirement; in that case, a significant dollar depreciation could clean out your savings. However, if you own multiple assets in global markets, you stand less impacted by the drop in U.S. dollar value.
If your Swiss investment plan is tailored for retirement planning, focus on low-volatility assets like ETFs and bonds (refer to Chapter 7) that can provide a long-term return. Read more on how to protect your retirement plan through wealth planning with LFA.
Where Do International Families Invest Their Wealth?
As many affluent families have figured out, investing in Switzerland is a wise action to diversify wealth during unpredictable markets. The best guides to team up with are global market, specialized wealth managers.
For full diversification benefits, many wealthy investors use the following recommendation: international investment accounts for at least 20% of their portfolio or 40% of stock and 30% of bond allocations.
In any foreign market, you must be thorough. Look at yourself and your investment destination. Start by understanding your family’s investment capabilities:
- How much are you using as investment funds? This defines your available asset.
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- What percentage of your portfolio will be international/domestic? This defines your asset allocation.
- How tolerant are you toward risk? Do you have emergency funds to catch yourself if things go south? (This defines your risk tolerance.
- Why are you going into the international market? This will determine your short and long term goals.
Family Office
Family office in wealth management is a term used for private wealth management services for ultra-high-net-worth individuals ($30+ million). Family offices are the ultimate solution for every aspect of an individual’s finances and investment, unlike traditional private wealth management.
For instance, family office structures provide insurance planning, retirement planning, legacy planning, tax planning, wealth transfer, budgeting, charitable giving, a dedicated private banker, financial guidance for future generations, family governance, and relocation services worldwide.
LFA provides multi-generational advice and services.
How Much Should You Invest in a Swiss Account?
Unlike traditional banking, private banking is a customized service used by high-net-worth individuals. It’s generally recommended to invest at least $1M if you want to explore Swiss investment. Anything less than that becomes susceptible to market fluctuations that won’t allow sufficient diversification.
You’ll have a more sophisticated portfolio if you’re investing larger assets. Let’s say you have $1M or above to move into international markets. You will likely invest in various products such as real estate, stocks, bonds, and/or businesses.
In this case, high investment expertise is required. Hiring a professional wealth manager who specializes in family office to maximize your return and safeguard your investment is a wise decision.
Your legacy matters. A specialized family wealth advisor (the most elite and advanced) will be your trusted ally on your path to maintaining and growing your wealth. They distinguish themselves from regular management firms by taking over all aspects of an affluent family’s financial life and serve as the overseer, strategist, and executor that financial futures depend upon.
The Safety of Wealth Management in Switzerland
Offshore banking can safeguard your assets. International private banks tend to provide improved privacy compared to U.S. banks, resulting in your personal and business assets being protected from financial and legal conflicts.
Again, working with an experienced international wealth management firm helps you diversify your holdings in the global market. During challenging times, having an offshore account can help you manage risk more effectively and makes you more resistant to economic fluctuations.
Switzerland will most likely remain the safest and most trustworthy offshore haven for high-net-worth individuals. Read our story to get started.
The key is to find the right wealth management firm for you.
Ask the following questions to ensure your safety in choosing the right wealth management firm who will protect your legacy:
- What credentials and licenses do you have?
- What type of investment are you involved in?
- How large are your accounts? (You want to work with a firm focusing on your asset class.)
- What kind of technology do you use?
- Can you protect information and safeguard assets while ensuring privacy?
- What services do you offer?
Meet some of LFA’s clients to see how you compare to those we serve.
The Precision of a Swiss Made Investment Plan
Your unique portfolio needs to be assessed by a financial advisor who utilizes a global investment strategy who clearly understands your risk tolerance and short and long-term goals.
Building a Swiss investment portfolio can incorporate various asset classes. Below are some suggestions. Of course, these are not recommendations for everyone; these investment options should be discussed with your international wealth manager.
ETFs
Exchange-Traded Funds (ETFs) are among the easiest assets in which to invest. You can purchase various assets in one security by providing a more efficient workflow.
Bonds
Government/corporate bonds have lower volatility/less risk but typically have more extended holding periods. Bond returns are on the lower end in the current market.
Stocks
There are two ways U.S. investors can add stocks to their Swiss investment portfolio: American depositary recipients (ADRs) or directly buying Swiss stocks.
Precious Metals
Precious metals are considered safe investments since their value remains relatively constant. Real returns do not come through like other assets.
Real Estate
Real estate remains one of the most popular investment assets, even though it is expensive and can get complicated if you are not living in Switzerland.
Bank Savings Account
Like precious metals, opening a Swiss bank account is a more stable asset allocation strategy than an investment.
The Forecast of Swiss Banking and Overall Benefits
The many benefits are what make Swiss investments attractive, which include:
- Higher international investment returns
- Diversifies your wealth
- Leverage different interest rates
- Increases security
A Deloitte report shows how the following decade fairs for Switzerland’s wealth management industry. Private bankers are forecasted to be more attentive while employing new technologies that will provide a more engaging, transparent, and efficient wealth management experience.
Switzerland looks to remain the safest and most trustworthy offshore haven for high-net-worth individuals. Meet our team to get to know us better.
Why You Should Work With LFA
LFA has a rich tradition of providing long-term, personalized wealth management services to investors. The majority of our U.S. clients reside in New York, Florida, Illinois, and California.
We are a specialized fee-based Swiss wealth management firm for American investors who aim to diversify a portion of their wealth out of the country. Our independent financial management services are tailored to clients seeking performance, risk management, and tax-efficient investing for their assets.
We want to:
- Provide a secure home to your aspirations
- Advise you and your family through multiple generations
- Share a common successful future
- Keep and eye on you and your family through your financial journey
- Extend our financial analysis expertise and our global macro view of investing to your international investment needs
You can benefit from a network of partners, including various Swiss banks, CPAs, international law firms, estate planners, and cross-border private clients.
If you are looking to diversify your assets and plan for a brighter future, there has never been a better time to discuss international wealth management in Switzerland.
Contact us at LFA today to learn more. We look forward to working with you and your family for years to come.