Many Americans are rethinking how much of their wealth should stay in U.S. dollars as debt, interest costs, and inflation reshape the long-term outlook. As 2026 has arrived, more investors are evaluating how much of their lifetime savings they want tied to one currency, one central bank, and one fiscal trajectory. This post explains what “ditching the dollar” really means, why 2026 is emerging as a strategic moment to reassess concentration risk, and how to diversify currency exposure thoughtfully and in full compliance—including how Switzerland and Liechtenstein can support a more resilient long-term plan.

In mid-2024, the U.S. Treasury reported that annual net interest payments on federal debt had climbed above 3% of GDP—already rivaling major spending categories and projected to grow further this decade. At the same time, the Congressional Budget Office expects federal debt held by the public to rise from about 99% of GDP in 2024 to roughly 116% by 2034 if current laws remain in place. These trends are unfolding while many households are still adjusting to the higher cost of living that followed the pandemic years.

Against this backdrop, more affluent Americans are asking a new kind of question. It is no longer only about stock market volatility or where the Fed will set interest rates next quarter. Instead, they are asking how much of their lifetime savings they want tied to one currency, one central bank, and one fiscal trajectory.

What “Ditching the Dollar” Actually Means (and What It Does Not)

In professional wealth management, this phrase usually points to reducing home bias. Home bias is the natural tendency of U.S. investors to keep most of their assets in U.S. markets and in U.S. dollars, simply because that is familiar. It also refers to managing currency concentration risk: the risk that nearly all long-term wealth depends on the value of a single currency and policy regime.

The U.S. dollar remains the world’s primary reserve currency. According to the International Monetary Fund’s COFER data, it still represents close to 60% of disclosed global foreign exchange reserves—well ahead of the euro, yen, and other currencies. Two decades ago, this share was well above 70%, illustrating a gradual long-term shift by global central banks toward greater diversification. These are powerful structural advantages, but they also show how global reserve composition evolves over time.

A more accurate phrase for what many investors are doing is strategic currency diversification. That means holding a meaningful share of wealth in other stable currencies and jurisdictions, aligned with personal goals, time horizon, and risk tolerance. It is about building a stronger foundation, not abandoning the U.S. or ignoring U.S. tax rules.

Why Many U.S. Portfolios Are Overexposed to the Dollar

When you look at a typical affluent American’s balance sheet, the dollar dominates almost every corner. Checking accounts, savings, and money market funds are in USD. Bonds are often U.S. Treasuries or dollar-denominated corporate issues. Equity exposure is usually concentrated in U.S. indices such as the S&P 500, held directly or via mutual funds and ETFs.

The result is that many investors feel diversified across asset classes, but remain concentrated in a single currency and legal system. This creates several long-term risks:

• Persistent inflation erodes the real value of dollar cash and bonds.
• Fiscal and monetary policy decisions can change the dollar’s real value in ways that are hard to anticipate.
• Political polarization increases uncertainty around tax, spending, and regulatory policy over the next decade.

Macro Forces Behind the Shift: Why 2026 Feels Like a Turning Point

Several structural forces are converging as 2026 approaches, prompting more Americans to reconsider their currency mix.

First, U.S. fiscal and debt dynamics are becoming harder to ignore. The IMF’s 2024 Fiscal Monitor projects U.S. general government gross debt staying above 120% of GDP over the medium term, with interest costs rising as a share of revenues. Higher interest rates mean the government must refinance existing debt at more expensive levels, which can crowd out other priorities or eventually require higher taxes. There is no single “danger line,” but sustained high debt and interest burdens can put pressure on inflation, growth, or both.

Second, the inflation experience since 2020 has changed how investors think about “safe” assets. Even if annual CPI readings move back toward 2%, the level shift in prices is already embedded. According to the Bureau of Labor Statistics, consumer prices in mid-2024 were roughly 20% higher than in 2019. For retirees and others relying on fixed-income investments or large cash holdings, that translates into a permanent loss of purchasing power.

When you compare this to Switzerland and Liechtenstein, the macro picture looks different. Switzerland’s debt-to-GDP ratio is relatively low by advanced-economy standards, and its “debt brake” framework is designed to keep budgets balanced over the economic cycle. The Swiss National Bank (SNB) has a long track record of focusing on price stability, and Switzerland’s consensus-driven political system tends to produce gradual, not abrupt, policy changes.

Liechtenstein, which uses the Swiss franc and is closely integrated with the Swiss financial system, follows a conservative fiscal stance and maintains a predictable regulatory environment for financial services. For Americans used to more frequent policy swings, these differences are notable. They help explain why the Swiss franc and Swiss-based platforms are often part of a strategy to reduce dollar overconcentration.

Why Switzerland (and the Swiss Franc) Are on U.S. Investors’ Radar

Switzerland’s appeal begins with its institutional framework. The country combines political stability, direct democracy, and strong rule of law. Property rights and contract enforcement are robust, and the financial sector is well regulated. This does not remove risk, but it provides a legal and regulatory environment that many investors find reassuring when placing assets abroad.

On the monetary side, the SNB’s mandate centers solely on price stability, while the Federal Reserve must balance both price stability and maximum employment—two goals that can sometimes conflict. The SNB is also widely regarded as more politically independent than the Fed. Historically, Swiss inflation has been lower and less volatile than U.S. inflation, and the Swiss franc has often held its value or appreciated during global stress episodes. Of course, currencies can move in both directions, and past performance is not a guarantee of future results.

Liechtenstein adds a complementary dimension. As a member of the European Economic Area with its own legal framework and a specialized financial sector, it offers access to European markets while sharing the currency and monetary framework of Switzerland.

How to Reduce Dollar Exposure Thoughtfully and Compliantly

Before choosing specific products or jurisdictions, it helps to clarify principles. The aim is to align currency diversification with your objectives, time horizon, and risk tolerance. Large, sudden shifts based on fear or sensational headlines can be counterproductive. A measured, rules-based approach is usually more effective.

A practical sequence for many U.S. investors might look like this:

1. Assess your current exposure. Map out how much of your net worth is effectively tied to USD through cash, bonds, equities, real estate, and income streams.
2. Set a target range for non-USD assets. Depending on age, goals, and risk tolerance, this might be 20–40% of financial assets, but it should be tailored to your situation.
3. Choose implementation tools. This can include foreign-currency accounts, non-U.S. equities and bonds in local currencies, and globally diversified portfolios custodied in stable jurisdictions such as Switzerland or Liechtenstein.
4. Phase in changes over time. Rather than moving all at once, consider reallocating a defined portion of your portfolio each quarter over 12–36 months to reduce timing risk.
5. Coordinate with tax and estate planning. Cross-border structures should be aligned with your U.S. tax position, estate plans, and long-term family goals.

Swiss accounts and portfolios are one way to implement this strategy. U.S. persons can open properly structured accounts with Swiss institutions that understand U.S. regulation. From there, they can build globally diversified portfolios managed from Switzerland, with transparent reporting and clear separation between custody and management. Decisions about which assets sit in the U.S. versus abroad should be made in coordination with tax and estate advisors.

Compliance is essential. U.S. citizens and residents must report foreign financial accounts and certain foreign assets. Key requirements include:

• FBAR (FinCEN Form 114):Required if the aggregate value of foreign financial accounts exceeds specific thresholds during the year.
• FATCA-related reporting (IRS Form 8938): Required for specified foreign financial assets above certain thresholds, in addition to FBAR.

Disclaimer: WHVP is not a tax advisor; clients should consult a qualified CPA.

From Concern to Action: Building a 2026 Diversification Plan

Turning generalized concern into a concrete plan is where progress happens. For many investors, the period leading up to 2026 is a reasonable timeframe to rebalance gradually, revisit planning assumptions, and adjust to the post-2020 environment.

Behavior matters as much as structure. Writing down an investment policy that includes target currency ranges, rebalancing rules, and risk limits can help anchor decisions. Reviewing this policy annually, or after major life events, is usually more productive than reacting to every market headline about the dollar.

Conclusion – Using Global Tools to Protect U.S. Wealth

For many Americans, the core issue is not whether to abandon the dollar. It is how to manage the risk of having almost everything tied to one currency, one central bank, and one fiscal path. Rising U.S. debt levels, higher interest costs, and ongoing political uncertainty make the years leading up to 2026 a sensible moment to reassess that concentration—but not a deadline or a prediction of crisis.

The main conclusions are straightforward. U.S. economic and policy trends are prompting more investors to look abroad for part of their wealth strategy. Switzerland and Liechtenstein offer structural strengths—stable institutions, disciplined monetary and fiscal policies, and experienced cross-border financial sectors—that make them natural candidates for currency and jurisdictional diversification. Thoughtful, compliant diversification can help protect purchasing power and enhance resilience over the long term, while keeping investors fully within U.S. legal and tax frameworks.

This article is for educational purposes only and does not constitute individualized investment, tax, or legal advice. Every investor’s situation is different, and decisions should be made in consultation with qualified professionals, including tax advisors.

Specialized Swiss wealth managers with U.S. expertise can help design and manage cross-border portfolios, coordinate with U.S. CPAs, and handle regulatory requirements such as FATCA and SEC rules. At WHVP, we help American clients protect and grow their wealth beyond borders.

Schedule a consultation today to explore how international diversification can secure your financial future.