While hope emerged during the last couple of months that things are getting better and life returns to normalcy, the current situation shows us that this is most likely not going to happen any time soon. It is very difficult to find good news these days and to anticipate these expectations about the future.
Featuring: David S. Lesperance, Founder, Lesperance Associates, Urs Vrijhof-Droese, Managing Partner, WHVP (in Switzerland) & Allan Maksymec, Partner, Strategic Swiss Advisors.
We continue to see a lot of uncertainty around the world. Last Tuesday Russia announced that they have a vaccination to treat coronavirus. However, many countries scrutinize the effectiveness and safety of the vaccination. The main criticism is the fact that the testing period started less than two months ago. We expect that it will take at least until the beginning of next year until a reliable vaccine is available for worldwide distribution. Consequently, international travel restrictions will continue to be in place for a while. Furthermore, we expect that during the months ahead, the volatility of the stock markets will stay high. Depending on the outcome of the Presidential election, this volatility could stay for quite some time into 2021.
If you have researched registered investment advisors, you have probably read the term “ADV Brochure”. You have come to the right place if you have wondered what exactly this refers to! This is a document registered investment advisors (RIA) have to submit to the Securities and Exchange Commission (SEC). The ADV brochure provides an overview of the company. RIAs have to update and file it annually. Lastly, the RIA needs to make it publicly available if it manages more than USD 25m.
Some thoughts and considerations when trying to decide which partner is the best fit to help you achieve your financial goals.
After accumulating a certain amount of wealth, you will have to think about where and how to invest it. There is an abundance of options out there. However, if you decide to work together with a professional partner and not do it all by yourself, you have two main choices. Going directly to a bank and getting advice from their relationship managers or selecting an external asset manager (EAM). Depending on your needs there are advantages and disadvantages to both options. But today I would like to focus on the advantages of an external asset manager.
COVID-19 was a shock and brought the world to a halt. Newspapers are still focused on the 8.1 million people infected by the virus. However, there are also about 4.5 million people that have recovered. Thinking about the remaining 3.1 million who still are infected, data shows that the symptoms are mild in over 90% of the cases.
Traditional IRAs allow you to save pre-tax money for retirement. If you are eligible to deduct contributions on your income taxes now and you anticipate a lower tax rate in retirement, then this is a good plan to consider. There are several types of IRAs but we, at WHVP, manage “Traditional IRAs” and “Roth IRAs”, administrated by a US trust Company.
European countries are taking steps to reopen the economy and social life. However, at the same time there are still new cases reported in China. CNN’s “Fear & Greed Index” clearly reflects the concerns of a second wave. The historic data from the Spanish flu is enhancing concerns and skeptical thinking. Back then, the second wave was much worse than the first. A second lockdown does not seem to be the solution, since people are already complaining in different regions of the world with some even organizing protest demonstrations. As of now, it is not clear as and when we will go back to a new normalcy.
The Swiss financial market supervisory authority released a statement last month confirming the stability of Swiss banks. In the statement FINMA notes that "the operations of financial institutions and the financial market infrastructure in Switzerland are continuing to function well. The institutions are also well equipped to deal with extreme stress scenarios."
If we have learned one thing from COVID-19, it is that life is unpredictable. A crisis can hit at any time and without notice. One thing you can do to protect yourself is to bring part of your wealth offshore. There are several suitable countries, but we firmly believe that Switzerland should be your number one choice. Let me share a little bit about Switzerland and why it is such a great country for wealth protection.
First and foremost we hope that you and your loved ones are healthy and safe. We currently find ourselves in unprecedented and historic times. In addition to being stressed by the plummet of the stock market, we are all going through personal struggles and the fear of the unknown related to COVID-19. We are worried about the health of our family and friends and have to adapt to working from home while often simultaneously home school our kids. Every aspect of our lives has been turned upside down. We are feeling with you and wish you good health and optimism during these uncertain times!
The current focus is the coronavirus. This virus makes people think back to 2003 when SARS struck China and had a notable impact on the world’s economy. Making things worse since then, China is more inter-twined in the current global value chain and has grown from the world’s sixth-largest economy to the second biggest today.
Switzerland has long been the world’s top offshore financial center. And for good reason. Its sophistication and professionalism are legendary. Plus, it has a distinct history, tradition, and culture that sincerely values privacy, neutrality, and independence.
What a year… We remember well where we found ourselves a year ago and yes, we have to admit that we did not expect markets to have taken off the way they did… It was an eventful year. There were the trade wars, the riots in France, and Brexit. However, no geopolitical hot spot has been able to slow down enthusiasm in the markets.
If you are considering working with an independent asset manager it is important to know how to do your due diligence. What are relevant questions that help you find the right financial partner for you? Some times it is hard to work through all the information out there and to pick the right questions. To make things easier we have put together a list of 50 essential questions you should consider asking when talking to a potential new asset manager.
By using an asset manager outside your own country, you gain a practical degree of financial privacy and asset protection. Since lawyers size up targets for lawsuits by looking for their money, someone considering suing you may decide to find a target with more visible wealth. In addition, a portfolio manager outside your domestic jurisdiction is likely to target different investments than a domestic manager would, leading to a greater investment diversification, and thus greater resiliency in your overall portfolio.
Ted Bauman interviews Jamie Vrijhof-Droese on her new book with Bob Bauman. Bob Bauman's new book is an overview of the many investment opportunities for Americans in Switzerland to add an international diversification component to their investment portfolios. Completely legal and complaint with the SEC to invest offshore in Switzerland. View full video for details!