What is the Guaranteed Growth, the Currency Factor, and Profit Sharing?
The guaranteed technical interest rate is presently 2%. In addition, dividends, although not guaranteed, historically, have added substantially to the cash values. There is also a strong potential growth because of the currency factor, – a favorable foreign exchange rate gain. For example the Swiss franc was worth about 23 US cents in 1971 and in 2009, about 1.04 US. In Canadian funds, it was worth 25 cents, and today, is near parity. Will this trend continue? No one knows. However, comparing the hard facts and economic indicators of Switzerland with those of other countries, one would tend to answer this question with YES. Depending on the currency denomination of your Swiss fixed annuity, average profit sharing (dividends) rate IN ADDITION to the 2% technical rate have been increased by various companies. Dividends may vary up to 3% + Swiss insurers are tightly monitored for their solvency, continuity, liquidity and risk allocation of all investments. The main body of control is the
