Like pioneers of modern times, affluent investors and wealth-minded professionals seek a more secure financial system to diversify their investments and safeguard their money. Aside from viewing Switzerland as a destination for your wealth, consider it a gateway to golden opportunities in the international market. This article demystifies offshore banking in Switzerland and answers these common questions American investors ask.
- Is it legal to have a Swiss bank account?
- Why should I invest overseas?
- Are my assets safe in a different country?
- How do I report on them?
- What makes Switzerland such a safe country for my investments?
Switzerland has reigned as a popular custodian country for wealthy Americans for hundreds of years. And LFA is a leading professional firm located in the heart of Switzerland that specializes in working with U.S. citizens like you. To give you a good idea of who we serve, most of our clients are located in New York, California, Florida, and Chicago, IL.
Switzerland can be a home to your assets. Find out how Americans benefit by working with LFA and contact us.
The Legality of a Swiss Bank Account
A Swiss bank account is 100% legal. What makes any offshore account illegal is the activity it is used for, not the fact of having an account.
As a New York-abiding citizen like Marco, you must declare your offshore bank account(s) to your home country to maintain legality. This means reporting your offshore accounts to the IRS even if there are no tax requirements on the Swiss side.
While U.S. citizens are legally allowed to open a Swiss bank account, they cannot do so anonymously. Of course, professional fee-based Swiss wealth managers will cover detailed specifications to keep you far from illegal maneuvers. Criminal activity is never condoned.
You cannot evade international sanctions or launder money in a Swiss account. Swiss law requires their banks to inquire about the purpose of any large entries and debits of investor bank account(s) and origin and destination.
You can feel secure knowing that your assets are safe in one of the most prestigious economies in the world and without ever having to leave the country to receive your returns. Read the benefits of working with private banks.
What are the Benefits of Offshore Banking?
Why do so many wealthy investors bank offshore? Below are some of the top benefits:
- Higher international investment returns
Many offshore funds generate higher returns with access to investment products that may not be available domestically. - Diversifies your wealth
Don’t put all of your eggs in one basket, especially when the U.S. economy fluctuates wildly. Offshore accounts are a great way to diversify your wealth. - Leverage different interest rates
Whether you’re saving with a higher interest rate or borrowing at a more affordable rate, offshore banking can give you more options and flexibility. - Increase security
Offshore banking can have much higher security than domestic banking.
People have shied away from offshore banking for years, primarily due to misunderstandings. If you stay close-minded to gaining access to global market opportunities to generate higher returns, you miss out on the ability to become more resilient.
To drive the point home and ease your mind as a law-abiding citizen, reputable Swiss wealth managers for U.S. investors who want to diversify part of their wealth outside the country will cover all your Swiss banking concerns.
Why Should You Consider Investing in Switzerland?
Among the many international investment destinations, Switzerland remains a global preference. With rapidly growing technology and low national debt, this strong economy provides a safe environment for innovations.
The low-interest rate in Swiss investments is attractive to high-net families. This trend supports the stability of the Swiss Franc.
Switzerland provides some of the highest security levels in the world. Unlike many other European countries, Switzerland holds neutral ground in international politics and therefore stays out of major conflicts, which creates even more security for investors.
A Golden Investment Environment
If you are concerned about currency fluctuations, it helps to know that our LFA relationships with Swiss banks enable you to diversify at least a portion of your wealth into Swiss francs. Learn more by contacting our LFA Switzerland-based team.
Purchasing power and a fluctuating U.S. dollar make Switzerland even friendlier to foreign investors. See how the value of the dollar can affect your retirement plan.
If you’re looking to start investing in Switzerland, now is the perfect time to set an appointment with a trusted wealth manager who specializes in multi-currency, multi-country, multi-asset portfolios. At LFA, we look at specific opportunities in terms of risk return but also in terms of companies and good opportunities around the world. Establish a strategy that resonates with your goals so you can maximize your funds, especially when the U.S. market is volatile.
How are LFA Clients Benefiting?
This couple serves as a great example. Marco (54) is a U.S. financial executive living in New York City, and his wife Lorraine (52) owns an art gallery in lower Manhattan. By working with us, they can diversify their U.S.-based holdings to hedge against potential dollar debasement and political unrest while gaining exposure to new growth opportunities outside of the U.S.
Our network of Swiss banks provides them access to Swiss franc-denominated accounts and hedges against the currency risk of holding all their assets in U.S. dollars.
If you are concerned that overly accommodative U.S. fiscal and monetary policies will lead to unmanageable deficits (currently $30 trillion and rising) that will permanently weaken the U.S. dollar, give us a call. Even if you aren’t concerned, it can be highly beneficial to you and the generations that follow in your footsteps to gain international exposure through LFA.
Explore more client stories. Then schedule a no-obligation appointment. We look forward to hearing from you.
Read six compelling reasons to work with LFA!
