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Variable swiss annuities interest |
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[Banking] [Annuities]
swiss variable annuity
fixed income conservative balanced dynamic portfolio types
When you invest a lump sum up-front, you choose from among different Asset Management Strategies according to your investment goals and our recommended solution. Asset protection is provided under time and court-tested insurance laws.
These strategies within an insurance policy are also referred to as variable annuities. They are "variable" because returns are not guaranteed, but you have considerable freedom to choose the strategy for investing your money. Just like with investments in the equity and bond market, as you take on greater risk, you are rewarded by potentially higher returns.Quite contrary to the fixed annuities, are the variable annuities. The more risk you take on your capital, the higher returns are guaranteed. Unlike fixed annuities, you have the considerable freedom, to choose your strategy portfolio of your own choice. There is no limits for the duration, but we recommend 5 yrs as a mininum term.
For U.S Investors
For US investors, the variable annuities are meets IRS code of tax deferral. Under Section 1035 of the Internal Revenue Code, a contract issued by a domestic or foreign insurance company can be exchanged on a tax-free basis for one issued by a foreign insurance company. Form 1035 is used for this purpose. If you choose to your cash values before 59 1/2 of age, IRS may charge you 10% penalty. During your phases of retirement, should your strategies are subjected to risks, you can jump from dynamic to fixed strategy to reduce risk. Should your chosen currency goes down in value, your portfolio has other currencies to compensate this downtrend.
| U.S Annuities | Strategy Portfolio | |
| Asset protection | no | yes |
| Privacy | no | yes |
| Full diversification | no | yes |
| Hedge against dollar decline* | no | yes |
| Tax-deferral | yes | yes |
| Flexibility | yes | yes |
| Choice of investments | yes | yes |
| Liquidity(* unless invested in foreign currencies) | yes | yes |
US-Tax deferral for Variable Annuities
If US tax-deferral is of importance to you, we have to take to following points into consideration while structuring your portfolio:
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Qualification as a life insurance (insurance corridor)
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No self-direction
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Diversification rule
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No 'debt instrument'
| We can send you proposal, necessary application forms by post free of charge to your contact address. Should you have further, questions please contact us |
Debt Instruments
Death Benefits in Policy Do Not Make It a Debt Instrument. The death benefits included in the policies do not make the annuities "debt instruments" (promises to pay a sum certain) and, therefore, are not tax deferred under Code Section 1275. They do not constitute debt instruments because they promise to pay a designated sum only if the owner dies. There is no guarantee of a particular sum if the owner cashes in the policy while he or she is alive.
In addition to the above criteria for determining whether a variable annuity is a debt instrument, two further conditions need to be met for tax deferral.
1. The Variable Annuity Must Not Be Self-Directed . The income from a variable annuity is tax free if the owner (or his or her adviser) is not managing the investments himself or herself (a so-called "self-directed" annuity). Owners are permitted to choose investment categories, but under the self-directed annuity rules they may not choose the actual investments. If they do, they are treated as the owners of the underlying assets and the income generated by those assets is taxable.
2. "Diversification Rule": The Variable Annuity Must Be Adequately Diversified . Finally, the inside buildup of variable annuities is tax free if the underlying portfolio is adequately diversified as defined in the U.S. tax code. An account meets the ,,diversification rule“ if
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No more than 55 percent of the value of the total assets of the account is represented by any one fund;
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No more than 70 percent of the value of the total assets of the account is represented by any two funds;
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No more than 80 percent of the value of the total assets of the account is represented by any three funds; and
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No more than 90 percent of the value of the total assets of the account is represented by any four funds.
To make certain that variable annuities comply with the diversification rule at all times, portfolio rebalancing is required on at least a quarterly basis.
The tax-deferred status of Swiss variable annuities has consequences for early withdrawal just as do U.S. contracts. Swiss variable annuities, however, offer a combination of asset protection, a choice of asset allocation strategies based on an investor‘s risk profile and other needs, and tax deferral for U.S. investors. This makes them ideal long-term investments that can harness the power of compound growth for a retirement portfolio.
US Excise Tax
Swiss annuties are exempt from 1% excise tax for purchase of foreign insurance products including annuities. Normally, IRS requires you to file Form 720 for 1% excise tax if you buy a foreign held annuities. Recent tax treaty with switzerland eliminates this tax. But Liechtenstein insurance are not exempt from this. Please note that currently our variable annuity is with liechtenstein insurance company (see below).
1035 Tax Free Exchange
Under Section 1035 of the Internal Revenue Code, a contract issued by a domestic or foreign insurance company can be exchanged on a tax-free basis for one issued by a foreign insurance company. Form 1035 is used for this purpose. It should be possible to convert your existing annuity to swiss annuity. For more information please contact us.
Strategy Portfolio qualification for Retirement plan
Strategy portfolios may be purchased by US taxsheltered corporate
pension plans, Keogh (H.R. 10) plans and Individual Retirement Accounts
(IRA). Special procedures are required to purchase a JML
Strategy Portfolio which complies with IRA regulations and to make
rollovers from your current plans. For more information, please contact
us.
Swiss Multi Asset
Portfolio - General Fact Sheet
There are four types of strategies, you can choose from your variable annuity portfolios, depending upon your level of risk.
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Conservative/Enhanced
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Balanced
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Dynamic
1. Conservative/Enhanced strategy portfolio
This is ideal for investors, who are willing to take next higher risk from fixed strategy. Typically the target return for the Balanced Portfolio is 8%. Asset Allocation is about 60% Equity Funds, 40% Bond Funds.
Asset Allocation*
- 60% Fixed-income funds
- 40% Blue chip funds
of which 10 largest holdings:
26% Master Selection Funds - Bond CHF
9% UBS (Lux) Bond Fund - CHF
10% Master Selection Funds - Bond EUR
7% LO Obliflex - The Multicurrency Hedged BF D (CHF)
7% Leu Swiss Equities
6% UBS 100 Index Fund Switzerland
7% UBS (Lux) Equity Fund - Euro Stoxx 50
6% Balzac USA Index Fund
5% JPMorgan Fleming US Select Equity A
6% JPMorgan Fleming UK Equity A (GBP)
Conservative Strategy - Detailed Fact Sheet
* Sample portfolio only, actual investments may differ.
2. Balanced strategy portfolio
This strategy contains a good mix of bonds and equities. Asset allocation in the form of
Asset Allocation*
- 45% Blue chip funds
- 5% Emerging market funds
- 40% Fixed-income funds
- 5% Small and mid-cap funds
- 5% Technology funds
from 10 largest holdings:
16% Master Selection Funds - Bond CHF
7% Leu Swiss Equities
7% UBS 100 Index Fund Switzerland
7% Master Selection Funds - Bond EUR
6% UBS (Lux) Bond Fund - CHF
6% UBS (Lux) Equity Fund - Euro Stoxx 50
6% Balzac USA Index Fund
7% JPMorgan Fleming UK Equity A (GBP)
6% JPMorgan Fleming US Select Equity A
7% Balzac Euro Index Fund
Balanced Strategy - Detailed Fact Sheet
* Sample portfolio only, actual investments may differ.
3. Dynamic Portfolio
This is a high risk strategy, with very high returns or low returns with a lot of fluctuations. This portfolio enjoys shares in high development telecom companies and in european markets.
Asset Allocation*
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60% Blue chip funds
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10% Emerging market funds
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10% Fixed-income funds
-
10% Small and mid-cap funds
-
10% Technology funds
of which 10 largest holdings:
9% Leu Swiss Equities
10% UBS 100 Index Fund Switzerland
8% Balzac USA Index Fund
8% JPMorgan Fleming US Select Equity A
8% UBS (Lux) Equity Fund - Euro Stoxx 50
7% Balzac Euro Index Fund
6% Master Selection Funds - Bond CHF
6% JPMorgan Fleming UK Equity A (GBP)
7% UBS (CH) Equity Fund - Small C. Europe
5% JPMorgan Fleming America Micro Cap A-USD
Dynamic Income Strategy - Detailed Fact Sheet
* Sample portfolio only, actual investments may differ.
| We can send you proposal, necessary application forms by post free of charge to your contact address. Should you have further, questions please contact us |
Here are our investment plans
STRATEGY PORTFOLIO PLANS
PLAN |
|
| Investment with | Liechtenstein Insurance Company |
| Type | Deferred life |
| Name | VariSwiss |
| Account Opening Minimum | USD 50'000 |
| Add on minimum | USD 50'000 |
| Add on limits | no limit, anytime |
| Multiple Depositary Institutions | no |
| Reference currency | CHF |
| Early withdrawal penalties | 10% and decreasing, after 5yrs no penalty |
| Partial withdrawals | yes, 10% every year for free |
| Loans | no |
| Life Income possible | yes |
| Commissions | no initial payload |
| Creditor Protection | yes |
| Currency switch | n/a |
| Portfolio switch | yes, bank charges minimal |
| self-directed investment | no for US tax deferral; yes otherwise |
| Term/Deferment period | 5 yrs minimum |
| Target Investment return (cannot be guaranteed for future) | Fixed = 3% Conservative = 6% Balanced = 8% Dynamic = 10% |
| Annual custodian advisory fee | none |
| Annual management fee | Fixed = 0.3% Conservative = 0.4% Balanced = 0.5% Dynamic = 0.6% |
| Other costs and fees | Administration fee = 1.1% yearly Mortality premium = none Establishment fee = 0.1% mo. for 5 yrs. |
| Guaranteed fixed interest/return | no |
| Capital guaranteed | no |
| Max age at purchase | 80 |
| Life Insurance coverage | no |
* NOTE: Data subjected to change
| We can send you proposal, necessary application forms by post free of charge to your contact address. Should you have further, questions please contact us |
Full list of information booklet download here
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