Where are you putting your investment $$$ ??

[34f3f3f]

While I do understand the “white glove” nature of private Swiss banking, how does this equate to wealth protection?

It doesn’t, except of course in the old fashioned sense of what is hidden is protected from litigious or divorce claims. Times have changed, and banks are now more open. However, Switzerland is one of the best places for banking. It’s their business and they are good at it. Offshore entities abound, not just in the Caribbean. The UK Channel Islands and the Isle of Man do huge offshore business, and have been serving the Captive Insurance market for a long time. However, islands don’t always attract quite the same caliber of personnel (IMHO). Little known to many, London is one of the biggest offshore centers, and the financial hub of Europe. Luxembourg is also very popular, and provided many services.

However, the only advantage of a foreign account is if it is in local currency, and you travel or make foreign purchases often. There are many investment restrictions and tax implications of having investments abroad, and you may be better served by taking professional advise. Things are not quite as untethered as you might think.

[34f3f3f]

While I do understand the “white glove” nature of private Swiss banking, how does this equate to wealth protection?

It doesn’t, except of course in the old fashioned sense of what is hidden is protected from litigious or divorce claims. Times have changed, and banks are now more open. However, Switzerland is one of the best places for banking. It’s their business and they are good at it. Offshore entities abound, not just in the Caribbean. The UK Channel Islands and the Isle of Man do huge offshore business, and have been serving the Captive Insurance market for a long time. However, islands don’t always attract quite the same caliber of personnel (IMHO). Little known to many, London is one of the biggest offshore centers, and the financial hub of Europe. Luxembourg is also very popular, and provided many services.

However, the only advantage of a foreign account is if it is in local currency, and you travel or make foreign purchases often. There are many investment restrictions and tax implications of having investments abroad, and you may be better served by taking professional advise. Things are not quite as untethered as you might think.

[Allan from Fallbrook]

qwerty007: I don’t think they are untethered at all, especially in the case of Swiss banks. These banks, for the most part, cooperate fully with the US Dept. of Justice as regards information sharing, and that does not bode well if you wish to protect your money from government intrusion.

I used to work for a large international insurance broker, Willis PLC, based out of London. We did a tremendous amount of business with captive insurance and reinsurance, based out of the Caribbean. We worked with Citi, Deutschebank, and Barclay’s, all of whom had offices down there. The quality of personnel was top-notch and, in point of fact, several of the larger Swiss banks posted senior personnel there solely to work the financing angle on captives.

A large oil company, which shall remain nameless, worked with us on creating a captive for its oil tankers and their cargo. The tankers were Bahamanian flagged, the oil cargo was owned by a shell in the Netherland Antilles, we handled the captive, AIG (through Ace in the Caribbean) did the reinsurance “layering” and Royal Bank of Scotland (through their correspondence branch in the Caribbean) did the finance and banking.

Plus, the weather is nicer and the flight is shorter.

[Allan from Fallbrook]

qwerty007: I don’t think they are untethered at all, especially in the case of Swiss banks. These banks, for the most part, cooperate fully with the US Dept. of Justice as regards information sharing, and that does not bode well if you wish to protect your money from government intrusion.

I used to work for a large international insurance broker, Willis PLC, based out of London. We did a tremendous amount of business with captive insurance and reinsurance, based out of the Caribbean. We worked with Citi, Deutschebank, and Barclay’s, all of whom had offices down there. The quality of personnel was top-notch and, in point of fact, several of the larger Swiss banks posted senior personnel there solely to work the financing angle on captives.

A large oil company, which shall remain nameless, worked with us on creating a captive for its oil tankers and their cargo. The tankers were Bahamanian flagged, the oil cargo was owned by a shell in the Netherland Antilles, we handled the captive, AIG (through Ace in the Caribbean) did the reinsurance “layering” and Royal Bank of Scotland (through their correspondence branch in the Caribbean) did the finance and banking.

Plus, the weather is nicer and the flight is shorter.

[New_Renter]

Thanks for the advice qwerty007. BTW, the object of a Swiss account isn’t to hide the money. I don’t believe there is anything in U.S. law to keep you from opening/maintaining foreign bank accounts, they just have to be fully reported on your U.S. tax return, and I assume there are also laws regarding the transfer of funds. Trying to hide money over there in a “numbered” account would be a really bad idea….;-)

[New_Renter]

Thanks for the advice qwerty007. BTW, the object of a Swiss account isn’t to hide the money. I don’t believe there is anything in U.S. law to keep you from opening/maintaining foreign bank accounts, they just have to be fully reported on your U.S. tax return, and I assume there are also laws regarding the transfer of funds. Trying to hide money over there in a “numbered” account would be a really bad idea….;-)

[Anonymous]

From my understanding any swiss bank which has offices outside of Switzerland and especially inside the US has a considerably weaker security (esp those with offices in the US where they are subject to US privacy laws and government intervention).

If you are looking for privacy, then a small private Swiss bank cannot be beaten.

But there is another reason to look at a Swiss account with a small private Swiss bank and that is their liquidity. Most small private Swiss banks are deposit institutions, meaning they actually hold your money and invest it or hold it solely at your discretion. They do not loan it out as they do in most large, public institutions, even Swiss ones, like UBS and Credit Suisse.

A savings account in the US actually holds no money only a ledger of what the Bank owes you. The bank has loaned that money out for an interest payment. For that right, you receive interest on your money. The Bank makes the difference between the two. Same is true for checking accounts (but only since the Fed has begun allowing overnight sweeps). You as the account holder have NO say in who, what, when, where or how your money is lent. And only the bank’s word and net worth (and the FDIC guarantee to their limits) that you will actually have your money when you want it. Works great when it works, but when it doesn’t then it can really bad. Just ask some of those depositors in the bank in Colorado that just went into receivership last month. Their money went to building condos in Miami. When loans couldn’t be paid back…oh well you get your FDIC limit back…any more is poof gone with the warm Miami wind.
If you are interested in wealth preservation, then a swiss account would be a good weapon in your arsenal.

[Anonymous]

From my understanding any swiss bank which has offices outside of Switzerland and especially inside the US has a considerably weaker security (esp those with offices in the US where they are subject to US privacy laws and government intervention).

If you are looking for privacy, then a small private Swiss bank cannot be beaten.

But there is another reason to look at a Swiss account with a small private Swiss bank and that is their liquidity. Most small private Swiss banks are deposit institutions, meaning they actually hold your money and invest it or hold it solely at your discretion. They do not loan it out as they do in most large, public institutions, even Swiss ones, like UBS and Credit Suisse.

A savings account in the US actually holds no money only a ledger of what the Bank owes you. The bank has loaned that money out for an interest payment. For that right, you receive interest on your money. The Bank makes the difference between the two. Same is true for checking accounts (but only since the Fed has begun allowing overnight sweeps). You as the account holder have NO say in who, what, when, where or how your money is lent. And only the bank’s word and net worth (and the FDIC guarantee to their limits) that you will actually have your money when you want it. Works great when it works, but when it doesn’t then it can really bad. Just ask some of those depositors in the bank in Colorado that just went into receivership last month. Their money went to building condos in Miami. When loans couldn’t be paid back…oh well you get your FDIC limit back…any more is poof gone with the warm Miami wind.
If you are interested in wealth preservation, then a swiss account would be a good weapon in your arsenal.

[Eugene]

So, this bank will hold my money in their vaults, they won’t pay me any interest, and they will actually charge me fees for doing that? And I have to travel to Switzerland to open an account?
How is that better than having a wad of cash under my mattress?
More interestingly, how is that better than having a swiss franc valued CD @ Everbank (well under FDIC limits, of course)?

[Eugene]

So, this bank will hold my money in their vaults, they won’t pay me any interest, and they will actually charge me fees for doing that? And I have to travel to Switzerland to open an account?
How is that better than having a wad of cash under my mattress?
More interestingly, how is that better than having a swiss franc valued CD @ Everbank (well under FDIC limits, of course)?

[34f3f3f]

Alan, if you read my sentence again you will see we are saying the same thing. The experiences I was talking of was retail, and were not good. Some personnel definitely had cotton wool between the ears. Having said that I still bank offshore and with an excellent crew. BTW I also worked for Willis for a short while.

[34f3f3f]

Alan, if you read my sentence again you will see we are saying the same thing. The experiences I was talking of was retail, and were not good. Some personnel definitely had cotton wool between the ears. Having said that I still bank offshore and with an excellent crew. BTW I also worked for Willis for a short while.

[34f3f3f]

Trying to hide money over there in a “numbered” account would be a really bad idea….;-)

Yes, and not a good idea to discuss on an open forum either 🙂 but in Europe it was and still is a preoccupation of many. I realize that until quite recently, discussion of tax evasion in the US was taboo. In the Europe of latter days “runners” used to collect suitcases of cash for old retired Colonels and the like, who felt robbed by successive European socialist governments ‘exorbitant’ tax policies. Banks of telephones used to line the floors of Monaco apartments, and not furniture or occupants. You’d be surprised at the ‘professional’ advise still given to reduce one’s tax bill in some countries. In case anyone is wondering, I am a fully paid up tax payer 🙂

[34f3f3f]

Trying to hide money over there in a “numbered” account would be a really bad idea….;-)

Yes, and not a good idea to discuss on an open forum either 🙂 but in Europe it was and still is a preoccupation of many. I realize that until quite recently, discussion of tax evasion in the US was taboo. In the Europe of latter days “runners” used to collect suitcases of cash for old retired Colonels and the like, who felt robbed by successive European socialist governments ‘exorbitant’ tax policies. Banks of telephones used to line the floors of Monaco apartments, and not furniture or occupants. You’d be surprised at the ‘professional’ advise still given to reduce one’s tax bill in some countries. In case anyone is wondering, I am a fully paid up tax payer 🙂

[pk92108]

How to transfer money?? Just wondering about you guys with foreign bank accounts – how do you transfer money to the account without a paper trail??? I assume if you write a U.S. check or wire the $$ and you get audited they could pick it up if the IRS supeonas your checking account..And also aren’t foreign transfers over $10,000 red flagged and reported to the governent??

Also do you report on your taxes that you have a foreign account??

Is it really worth it since you usually don’t get interest abroad so basically you are making a currency play and losing out on a guarrenteed 4.5% money market interest rate… would need to make more than that % in currency gains to make it worth while…..

just curious…..

[Author]

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