Economic history has a way of repeating its lessons, just with different headlines. From the Great Depression to more recent debt and inflation cycles, U.S. investors have witnessed how concentration in a single currency or system can subtly influence outcomes over the course of decades.
Without a crystal ball to predict the future in 2026 and beyond, investors often evaluate whether their wealth is sufficiently diversified to withstand investment, economic, or political stress.
As a Swiss-based, SEC-registered wealth management firm, LFA works with U.S.-based clients on cross-border wealth management and diversification considerations. In today’s article, we’ll examine some of the most common questions and concerns we hear from investors when considering Switzerland as part of a more global diversification strategy, along with practical context and planning considerations.
What did the Great Depression reveal about concentration risk?
The Great Depression demonstrated that wealth concentrated in a single market, currency, or financial system can be vulnerable to risks that may unfold slowly but can have profound consequences over an extended time period.
For example, during the aftermath of the 1929 stock market crash, the challenge wasn’t just severe declines in stock prices. Bank failures, policy changes, and economic contraction all overlapped to create a global crisis. The severity of this decline may never be repeated, but it does demonstrate the risk of relying on a single system that had fewer options when conditions started to deteriorate.
Diversification doesn’t eliminate hardship, but it can widen the range of available responses. It is the equivalent of not putting all of your eggs in one basket.
How does the purchasing power of a dollar fit into this discussion?
The purchasing power of the dollar reflects how many goods and services you can buy and how even smaller amounts of inflation can reduce the purchasing power of your dollar-denominated assets.
When people hear that the dollar has lost significant purchasing power over the last century, it can sound abstract based on the length of the timeline. In practice, it means that future expenses will be significantly more expensive than they were in the past.
For investors planning over long time horizons, including future generations, this can be an important consideration. Wealth that appears substantial on paper today may be considerably lower in the future if all of your assets are invested in a single economy and currency.
This is one reason global diversification enters the conversation for affluent U.S.-based investors, who think beyond short-term cycles, and why some U.S.-based investors consider working with a Swiss wealth management firm as part of a broader diversification discussion.
Why do some U.S. investors consider Switzerland in a diversification context?
A straightforward way to think about global diversification is in terms of climate zones. If all your crops grow in one region, a single weather pattern affects everything. Planting in multiple zones doesn’t stop storms, but it can reduce dependence on one outcome.
U.S. investors should consider investing in Switzerland to diversify currencies, investments, and jurisdictional diversification beyond the U.S. financial system.
Switzerland operates with its own monetary policy, banking framework, and economic priorities. For investors, that difference is often the point of this strategy. Adding Swiss exposure can introduce balance when most assets are already closely tied to U.S. markets and the U.S. dollar.
Are Swiss bank accounts available to U.S. citizens?
Yes. This is one of the most frequently asked questions by investors evaluating a Swiss wealth management firm. Swiss bank accounts for U.S. citizens are legal when properly structured and reported in accordance with U.S. regulations.
Swiss accounts are permitted for U.S. citizens, provided U.S. and Swiss reporting requirements, such as FBAR and FATCA, are followed.
For some investors, the purpose isn’t privacy for its own sake. It’s access to a separate banking system, currency exposure, and financial infrastructure that operates independently of U.S. policy decisions.
LFA is registered with the U.S. Securities and Exchange Commission (SEC) and provides investment advisory services to U.S. clients, subject to applicable regulatory requirements. We are also registered with the Swiss Financial Market Supervisory Authority (FINMA), Switzerland’s primary financial regulator, which is responsible for supervising financial institutions in Switzerland.
How can investing in Switzerland help diversify wealth?
Swiss wealth management approaches are not based on one-size-fits-all solutions. They are typically applied selectively, thoughtfully, and in coordination with a broader financial picture that spans currencies, jurisdictions, and generations.
Currency-Based Asset Allocation
One of the most discussed Swiss strategies involves holding a portion of a client’s assets in Swiss francs rather than exclusively in U.S. dollars. Because the Swiss franc has historically performed differently from many major currencies, this approach is often used to introduce currency diversification rather than investing all of the assets in a single monetary system.
This may be relevant for investors with long-term horizons, cross-border spending needs, or concerns about maintaining purchasing power across different economic and policy environments.
Jurisdictional Diversification
Swiss wealth management often introduces a second legal and regulatory framework in addition to the U.S. agencies. Assets held in Switzerland are subject to Swiss banking law and oversight by the Swiss Financial Market Supervisory Authority (FINMA).
For many high-net-worth investors, the consideration is not about investing where regulations are more flexible, but about having assets subject to more than one country’s rules, policies, or future regulatory changes. Jurisdictional diversification can add flexibility when planning for estate considerations, business liquidity events, or international family ties.
Global Custody and Asset Segmentation
Swiss private banks are commonly used for custody rather than active trading. Assets may be segmented by purpose, for example, long-term reserves, legacy assets, or capital intended for business or real estate investments.
This type of structure can help investors separate capital intended for long-term objectives from assets used for more immediate spending requirements. This flexibility is significant during periods of increased market volatility.
Emphasis on Capital Preservation and Liquidity
Swiss wealth management has traditionally emphasized balance sheet strength, liquidity, and conservative investment practices. While portfolios can include global equities and fixed income, they are often constructed to maintain liquidity and mitigate downside risk rather than engage in more aggressive portfolio management practices.
For investors with concentrated wealth, due to business ownership or stock options, a well-thought-out investment strategy will be designed to minimize this risk.
Cross-Border Coordination With U.S. Planning
For U.S. persons, coordination among Swiss advisors and U.S. tax and estate professionals can help align financial planning across jurisdictions. When structured appropriately, Swiss strategies may serve as an extension of an existing financial plan rather than a separate financial silo.
About LFA: Partnering With You on Global Wealth Decisions
As you consider how to diversify, protect, and balance your financial structure in 2026, partnering with the right wealth manager matters. At LFA, the emphasis is on providing Swiss expertise explicitly tailored to your specific needs outside of the U.S.
LFA is a fee-only Swiss wealth manager registered in both the United States and Switzerland, providing services that combine international investment options with U.S. tax and reporting requirements.
LFA works with investors with U.S. tax obligations, offering guidance on structuring cross-border portfolios, managing currency exposure, and exploring Swiss banking options. Our services are intended to complement existing financial plans and support coordination with U.S. advisors such as CPAs and estate planning professionals.
In a financial environment where concentrated exposure to a single currency or market can shape outcomes over decades, having a partner that understands both domestic regulations and international options can be valuable.
Whether exploring Swiss bank accounts for U.S. citizens, assessing currency exposure, or structuring global investment strategies, LFA’s approach is designed to complement your overall financial picture and help explore diversification choices with clarity and confidence. Connect with us for an introductory call to learn more about our wealth management services for U.S.-based investors.
