The Swiss Fixed Annuity is a contract with a stable Swiss insurance company that guarantees your principal and all interest payments. It has a flexible duration, and may be liquidated at any time. It is one of the very few interest-bearing investments in Switzerland not subject to Swiss withholding tax. Principal and interest are guaranteed by first class companies, non-guaranteed profit sharing dividends increase your total return. The total return is comparable to that of government bonds. However, the Swiss Fixed Annuity is even more safe than government bonds, since you don’t have any market risk. At all times, you know your investment is safe and available.
A Swiss fixed annuity is a type of annuity contract that allows for the accumulation of capital on a tax-deferred basis. In exchange for a lump sum of capital, a life insurance company credits the annuity account with a guaranteed fixed rate of interest while guaranteeing the principal investment.
One of the biggest retirement risks is outliving your savings. Fixed income annuities may help you to plan for the lifestyle you’ve worked hard to achieve, knowing that you will have a source of income that will last throughout retirement.
With this guaranteed stream of income in retirement, you (and your spouse, if you choose a joint annuity) have the assurance of knowing that some of your income is secure. This may help you manage your retirement spending accordingly.
Photo credit: marcokalmann via Visual hunt / CC BY-NC-ND
Leave a Reply