For such a small country, Switzerland punches well above its financial weight and takes home the gold in global financial stakes. Having access to the global market is where international families successfully build wealth. Of course, that’s not their only means of obtaining financial freedom, but it’s part of their diversified investment strategy.
Why start from ground zero when you can stand on a giant’s shoulder, right? As the U.S. market is undergoing uncertainty, now is the perfect time to discuss investing internationally, a wise alternative to diversifying your wealth.
Ready to diversify your investment portfolio beyond a US-only strategy? LFA creates opportunities for American citizens.
Let’s explore how international families are already leading the offshore banking and investment game.
What Should You Consider When Investing Abroad?
If you are researching how to invest internationally, it’s crucial to understand what you should consider as a high-net-worth individual (HNWI).
You should compare foreign markets thoughtfully. This means looking at yourself and your investment destination with professional guidance. Start with comprehending your investment capabilities:
- Available Assets – How much are you using as investment funds?
- Asset Allocation – What percentage of your portfolio will be international? What percentage is domestic?
- Risk Tolerance – How tolerant are you toward risk? Do you have emergency funds to catch yourself if things go south?
- Short and Long Term Goals – Why are you going into the international market?
It will also help to evaluate your investment destination for economic, political, and sovereign risks. Generally, you want to invest in low-risk countries, often known as investment havens. These countries usually have a growing economy and a neutral diplomatic approach.
Loose money policies are also ideal for those looking to invest more aggressively in a foreign country. Serving as a gate to the international market, Switzerland is a prime example of a safe haven, providing security for wealthy investors.
What is a Family Office?
Don’t get confused. Family offices in wealth management have nothing to do with your work-from-home lifestyle. It is the term used for private wealth management services designed for ultra-high-net-worth individuals (UHNWIs).
Unlike traditional private wealth management, family office structures are the absolute solution for every aspect of an individual’s finances and investment. For example, at LFA, we provide multi-generational services and advice, including a dedicated private banker, family governance, financial education for future generations, retirement planning, worldwide relocation services, and support for your philanthropic interests.
A family office structure is most suitable for ultra HNWIs with multiple moving pieces in the financial realm. This could be multiple income streams, a highly diversified investment portfolio, or ownership of charity organizations and foundations. LFA goes the extra mile beyond monetary thresholds. Each of our client’s portfolios is customized uniquely to them and their goals, with a multigenerational approach.
How Can Your Asset Amount Affect Your Investment?
Your asset amount is one of the most impactful elements driving your foreign investment strategy. It could also change things drastically when investing in certain countries. Too small of an investment amount can equate to higher risk.
Switzerland is one of many high-net-worth families’ most favored investment destinations. If you’re going big on investment, you will have a more intricate portfolio. For example, if you have $1M to invest in international markets, you’ll likely invest in various products such as real estate, businesses, stocks, and bonds.
In this scenario, more investment expertise is required than managing a simple portfolio. You should hire a Swiss wealth manager who specializes in working with Americans. Developing a family office structure can protect your investment and maximize your return.
Hiring a Family Office Wealth Advisor
All financial advisors are not created equal in this arena. A specialized family wealth advisor can be your most trusted comrade on your path to maintaining and growing your wealth. Therefore, you must hire the right firm.
As mentioned earlier, family office wealth advisors are the most elite and advanced. They take overall financial aspects of an affluent family’s life, managing net worths of $200 to $250 million on average. They serve as the strategist, executor, and overwatcher that can secure your financial future.
Where to Find Family Office Wealth Advisors
If you search for a family office advisor on Google, you’ll notice the results simply show you regular wealth management firms—this is not what you want.
Ask LFA about their client history in family office wealth.
Be comfortable with asking the hard questions. You want to hire someone who is on top of their game. If you’d like to diversify internationally, seek advisors specializing in those fields, as these are particular niches with unique regulations and incomparable opportunities.
Top Foreign Investment Destinations
So, where are international families putting their investments? Below are some of the top foreign investment destinations.
- Switzerland
- London
- Hong Kong
- Singapore
- Panama
If you’re ready to step towards the family office structure, speak with our team at LFA and see how you can start growing your wealth today. We look forward to exploring your legacy.
How are LFA clients benefiting?
This couple serves as a primary example of how our clients in Florida are benefiting. Guillermo (53) is a Miami-based executive for an Argentine company, and Olivia (50) is a college professor. Both green card holders have two teenage children who currently attend a private school and plan to enroll in four-year colleges in the United States or Europe.
By diversifying their investments outside of both Argentina and the U.S., they can hedge their bets, take advantage of investment opportunities in international markets, and shelter a portion of their assets from political risk in Argentina. By adding Swiss francs to their mix of currency holdings, they add resiliency to their portfolio and hedge against potential peso devaluation.
Find out more about who we serve.
LFA is dedicated to providing individuals, families, and couples with dependable investment services. We work with high-net-worth clients and their foundations, estates, trusts, holding companies, and other interests. Start a conversation with us to learn more about how we can help you.
Take the following steps in growing your wealth overseas with a fee-based fiduciary, always putting your best interest at the forefront.
Next Steps
- Give us a call to talk about your financial challenges.
- Explore more client stories to see how challenges are met with solutions.
- Read: Are Offshore Accounts Legal for Americans? Swiss Banking Explained?
- Schedule a no-obligation appointment. We look forward to hearing from you soon!
