geographic diversification / overseas brokerage / swissquote.ch

[murphy_p_t]

in terms of geographic diversification, what ideas do you have to achieve this? I'm thinking about risk due to gov't nationalizing accounts.

In particular, what about holding funds overseas? Does anyone hs experience using something like www.Swissquote.ch

[murphy_p_t]

swissquote is not accepting US residents at this time.

I'm looking for other options.

[craigr]

I have been considering investigating this resource:

http://www.globalgold.ch/

Brochure:

http://www.globalgold.ch/files/docs/for ... ure_en.pdf

Not sure of the minimums though.

[cowboyhat]

Minimum purchase is CHF 50,000 with additional purchases in CHF 20,000 increments.

[Ad Orientem]

If you are what the Swiss term a "US Person" you should pretty much forget about banking in Switzerland unless you have a great deal of money to wave under their nose.  Americans are by and large more trouble than we are worth given the rather onerous reporting requirements now imposed by the US Treasury Dept.  To some degree this problem is not limited to Switzerland.  That said having an offshore bank account is still a good idea if you can swing it.  And for those who do have the money (usually $1 Million to get in the door), Switzerland remains the safest place to park money.  Here are a few quick points on offshore banking.

1. Don't believe everything they say about bank secrecy.  True bank secrecy is dead.  The Swiss do however have some of the strictest laws regarding financial confidentiality in the world and their reputation in that respect is not BS.
2. Don't even think about trying to hide money from the IRS or your three ex-wives or anyone else who may have a strong legal claim on it.  US law requires full disclosure of any and all foreign bank accounts you have access to if there are aggregate assets exceeding $10,000.  This must be done annually and the penalties for failure to disclose are draconian.  That said, in a serious crisis it may be very difficult for the US Government to compel repatriation of any assets in foreign banks.  This would be even more true if you are not within the country yourself.
3. If you are thinking about banking offshore be prepared not only for minimum investments which may or may not be steep, but also for annual account management fees even if your portfolio is passive.  Swiss banks tend to be a little steep in both respects.
4. The Swiss are probably the best.  But they are out of reach at the moment for all but the very well off.  Don't limit your options to Switzerland.
5. In line with #2 and the whole idea behind geographic diversification everyone should have a valid passport.
6. Offshore banking has significant legal implications and lots of reporting requirements.  Consult an attorney before opening a foreign bank account and be prepared to sign a waiver of bank secrecy at any institution you have a relationship with for the IRS and US Treasury reporting requirements.

Click here for a list of Swiss banks and their websites where available.

Click here for a list of offshore banking centers.