Nancy R. Gire
J.P. King & Associates, Inc.
Walnut Creek, CA

Darrell Aviss, the author of the article, responds:

There are really only two things people need to be aware of as far as the downside to investing in a Swiss annuity versus a domestic one: the psychological affect and the risks associated with having your money in a foreign currency.

Although we are all used to dealing in the global economy - we buy cameras from Japan, gas from the Netherlands, cars from Germany, etc. - there is often a psychological barrier to sending our money offshore to invest with a company we've never heard of.  Historically, this is the number one concern among people and is a hurdle that must be accepted in order to invest in Swiss annuities.

There is also the currency factor, although this presents as much opportunity as it does risk.  In recent years the dollar has steadily declined against the Swiss franc, but if the U.S. economy turns around and the dollar gains strength, there is the potential to lose money if the annuity has been bought in francs.  However, unlike a domestic annuity, investors have the option to switch currencies at any time.  Swiss annuities can be denominated in several currencies including the dollar. 

Darrell Aviss
SwissGuard International, GmbH

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