Swiss Annuity

A Swiss annuity is an annuity provided by a Swiss insurance company. Swiss annuities come in several forms such as fixed immediate, fixed deferred and a form that allows the owner to direct independent investments. Swiss annuities are often—although not always—denominated in Swiss Francs. Currency strength and the unique asset protection provided under Swiss law are generally considered to be the main benefits of a Swiss annuity. Inflation erodes purchasing power and is especially harmful to people (such as annuity owners) who receive fixed payments. In contrast, a strong and stable currency preserves and even enhances purchasing power. The Swiss annuity is protected from all creditor claims, even in the case of a bankruptcy. Other attractive fees include relatively low management fees, liquidity and privacy. Under U.S. tax law, it is possible to exchange an existing annuity for a Swiss annuity.

Understanding Swiss Annuities

While it might be an unusual time to provide an explanation of Swiss annuities given what has been taking place of late with the Swiss franc and related decisions made by the Swiss National Bank, it still makes sense for any financial services consumer to understand potential benefits of these products.

Switzerland - Courtesy of Travellingtamas

A Swiss...

Is it possible to use USD in an IRA account to purchase a Swiss Longevity annuity?

Good question.

First thing to consider is that--to my knowledge--there are only a few types of annuities offered by Swiss insurance companies.

What happens if the The Dollar is abandoned and new currency issued?

An interesting question and a rather extreme scenario I suppose.

As you indicate, the currency can suffer quite a bit of damage through either inflation or deflation.

I am not sure, however, how the contractual obligations would be affected in an insurance or annuity contract if the currency were replaced. 

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