Deferred Variable Annuity Plan
The variable annuity does not guarantee fixed rate of return, but variable returns. You invest a lump sum up-front with a insurance company, you choose asset management, asset protection is provided under time and court-tested insurance laws of Liechtenstein. We are only offering variable annuity in Liechtenstein as variable annuity is not possible in Switzerland.
Quite contrary to the fixed annuities, are the variable annuities. The more risk you take on your capital, the higher returns are guaranteed. By putting an insurance wrapper to your strategy portfolio or investment, asset protection can be achieved for your money. 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.Unlike fixed annuities, you have the considerable freedom, to choose your strategy portfolio of your own choice.
We require a minimum investment of USD 1 million for the variable annuity plan. With fixed annuity plans, the minimum is USD 50'000.
For U.S Investors
The information below may not be interpreted as legal or tax advice before making an investment decision. We do not provide legal, tax advice to our clients. Please consult your tax expert in your country for more information.
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.
US-Tax deferral for Variable Annuities
By putting an insurance wrapper to your strategy portfolio, US citizens can enjoy the tax-deferred status of variable annuities. Further, you have to take to following points into consideration while structuring your portfolio:
A variable annuity is does not “promise to pay a sum certain” and is not, therefore, a debt instrument. According to experts, a variable annuity under which the issuer guaranteed to return the owner’s investment, or guaranteed a certain investment return, might be a debt instrument subject to section 1275. But as long as the risk of loss lies with the owner, section 1275 does not apply and the annuity income is tax deferred.
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
To make certain that variable annuities comply with the diversification rule at all times, portfolio rebalancing is required on atleast a quarterly basis.
The tax-deferred status of variable annuities has consequences for early withdrawal just as do U.S. contracts. 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
1% excise tax applies Liechtenstein insurance products are not exempt from this. Swiss annuities are exempt from this.
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.
Strategy Portfolio qualification for IRA Retirement plan
Strategy portfolios may be purchased by US taxsheltered corporate pension plans, 401k , Keogh (H.R. 10) plans and Individual Retirement Accounts (IRA). Special procedures are required which complies with IRA regulations and to make rollovers from your current plans. For more information, please contact us.
** Note: The information available here not constitute professional opinion and should not be be relied upon in making an investment decision. We ask our clients to seek professional advice from a tax expert in their home country, as we do not provide assistance in tax matters.
Please note that every strategy portfolio has to be managed individually and the asset allocation (and therefore risk, possible return, etc.) is to be discussed directly between the you and the bank/asset manager, since we do not provide these services.
*Note: Above is for sample only. Actual policy conditions and rates may vary from one insurance company to other.
Our service is free with best advise and assistance on fixed or variable annuities, appointment of beneficiaries and maintenance of contract with premier rated Swiss insurance companies. We charge no upfront fee from our customers, as our commissions are paid by insurance companies in switzerland. We offer you the best advice and consultation for your investments in switzerland.