A Swiss fixed annuity has all the features one could wish for in a long-term investment. With a Swiss fixed annuity, your money is protected from inflationary and tax erosion. In addition, the investor benefits from a life income guarantee once the income option is chosen. It is therefore a savings plan and a pension fund all in one. Fixed annuities issued by a swiss insurance company, are primarily for those who do not want to take risks on losing their deposits. Fixed annuities, guarantee a minimum fixed rate, while holding the capital. Swiss annuities give you the same privacy as a Swiss bank account. The safety and security of Switzerland is yours, as they have been for generations of investors seeking financial sanctuary.

Fixed annuities issued by a swiss insurance company, are primarily for those who do not want to take risks on losing their deposits. Fixed annuities, guarantee a minimum fixed rate, while holding the capital. They qualify for tax deferral and exempt from U.S excise taxes.

• What is a swiss annuity?
• Difference between swiss annuities and bank accounts ?

There are three types of fixed annuity strategies

1. Lifetime Annuity
2. Limited time Annnuity
3. Deferred Annuity

Privacy

Swiss insurance companies are not allowed to report the purchase of an annuity certificate to anyone, private persons or government authorities. This means that the purchaser is solely obliged to report and pay taxes.

Guaranteed life income

You may choose to receive an income for life which ensures that you will receive payments for your entire life, even if your principal investment is depleted. In case of death prior to depletion, the residual value in your annuity
is paid to the beneficiaries.

No Swiss taxes

Unlike with traditional Swiss bank accounts, your annuity investment is completely free of Swiss taxes and protects the net growth. There are no withholding, inheritance, stamp or wealth taxes.

Currency convertibility

Swiss annuities are available in Swiss francs (CHF), U.S. dollars (USD) or the new European currency, euros (EUR). You choose the denomination of your annuity, retaining the right to switch currencies at any time during the accumulation period. Therefore, you have the flexibility to adjust your currency allocation according to longterm currency trends.

US Tax Deferral

For U.S citizens fixed annuities does not qualify for tax deferral, but properly structured variable annuities can meet U.S Tax deferral. The U.S. Internal Revenue Service gives a different tax treatment for foreign annuities which on the whole provides substantially more flexibility for Americans pur-chasing Swiss fixed annuities. Interest and dividends on U.S. annuities are tax-sheltered until withdrawn while those on Swiss fixed annuities are taxable each year as ordinary income. For U.S. annuities, all previously untaxed amounts on withdrawals, liquidations and loan proceeds are taxed as ordinary income, with premature distributions assessed a 10% penalty. No such penalties or taxes aply for Swiss fixed annuities. You can decide when or how to draw money from your annuity, and painlessly! Loan interest is never taxdeductible for U.S. annuities and tax-deductible for Swiss fixed annuities when loan proceeds are used to purchase other investments (such as stocks in a Swiss bank account).

Update: Swiss Fixed Annuities are no longer offered to US clients. If you are US citizen, please see Variable annuity plan

IRS Tax Treatment

When should I convert my US dollars into Swiss francs?

As with any investment, you should buy when the price is low, that is, use any temporary period of weakness in the franc to convert your dollars. Or you can purchase a Swiss annuity certificate in US dollars and wait until it's the best time for you before switching into francs. Just remember, with a long holding period, the long-term trends are what count. Better yet, buy a series of equally-valued certificates in dollars and convert them into Swiss francs at regular intervals. In volatile markets, dollar cost averaging ensures that you never pay peak prices.

What happens if I die before recovering my investment?

If you are the Insured Person, the surrender value of the contract is paid immediately to your designated beneficiary. If you have named someone else as the insured life, U.S. law limits the period of tax deferral after your death and requires the insurance company to pay the surrender value to your designated beneficiary, in a lump sum, within five years of death (it can be paid sooner, if your beneficiary desires). However, if annuity payments have already begun when you die, these payments may continue at the same rate.

Here is the detailed overview of the annuity we offer.

Update: Swiss Fixed Annuities are no longer offered to US clients. If you are US citizen, please see Variable annuity plan

Typical Example

The following numerical example illustrates the growth of your investment during the accumulation period. Assume that you are a 45-year old male investing CHF 100,000. The accumulated value of your annuity after 20 years, at age 65, would amount to CHF 179,281. For a 100,000 euro investment, it would anmount to EUR 230,685 and for USD 100,000, you will get USD 247,820.

The table below shows the development of a Swiss annuity denominated in Swiss francs, Euros, and US dollars. The tables are meant to illustrate the benefit you may expect from a Swiss annuity. Differences according to age and gender may occur. The figures for "guaranteed capital value" include guaranteed interest earnings. The total value includes profit sharing dividends. Dividend earnings are based on the custodian's calculations and are not guaranteed for the future.

After the accumulation period, at age 65, you may expect the following annual income for life:

CHF 6,880
EUR 11,021
USD 12,358

* Depending on the development of the exchange rate versus your "home" currency, the income may be even higher.

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For more information please refer our Frequently Asked Questions(FAQ's) section. Should you have any questions of general category, please do not hesitate to Contact Us.