Using Annuities for Tax Deferral by Adam Starchild With annuities, your money keeps compounding completely tax- deferred until you're ready to take it out. This technique is not just for the wealthy. And that's after just 10 years. Until a few years ago many Swiss annuities were not a particularly good deal, with some high initial charges. That is no longer the case, and there are now some superb products available to American investors.
Swiss annuities offer instant liquidity, a rarity in annuities.
All capital, plus all accumulated interest and dividends, can be freely accessible after the first year. Although called annuities, Swiss annuities act more like a savings account than a deferred annuity. But it is operated under an insurance company's umbrella, so that it conforms to the IRS' definition of an annuity, and as such, compounds tax-free. They also cannot be included in a Swiss bankruptcy procedure. Even if an American court expressly orders the seizure of a Swiss annuity account or its inclusion in a bankruptcy estate, the account will not be seized by Swiss authorities, provided that it has been structured the right way.