Diversifying Your Holdings to Protect Your Wealth


If 2008 has taught the business world anything, it’s that things can go south very quickly. For years now, economists and business types have debated exactly how the global market suffered such a collapse during the crisis of 2008. One thing is certain, those that kept their money in one place were the most likely to suffer the worst consequences. For example, if your business was completely beholden to the mortgage-backed securities of Goldman Sachs, you probably lost just about everything. While mortgage-backed securities were thought to be pretty secure at the time, companies still over-committed to one type of security. You definitely should do everything you can to create a diverse and flexible business that is secure from market mayhem and also injurious taxes.

Security from Harmful Taxes

In many different jurisdictions, taxes are used as a bludgeon for politicians and regulators to punish business. In addition to the different ways that politicians use taxes as tools to harm businesses, they’re also subject to political wrangling. So, even if a political class has the best interests of businesses in mind, they are subject to public pressure and re-election. If you are running a business in a representative democracy, you run the risks of your business fortunes changing in an instant.

For example, if you have a business that is benefitting greatly from the regulations set forth by a certain political party, you run the risk of all of that changing when a new political party comes to power. That’s why it’s so important to keep your business as protected from this kind of uncertainty as possible. This type of uncertainty not only makes it likely that you could lose money in the future, but it also makes it harder to do business since the playing field is constantly in flux. A Swiss holding company can protect your assets from uncertain politics and injurious legislation.

Benefits of a Holding Company

A lot of press is made of the tax benefits available in Switzerland, which is often the first reason that people might create a holding company. Switzerland is a very pro-business environment that does everything it can to create taxes that support the creation and prosperity of businesses. When you create a holding company, you have the opportunity to reap the benefits of those pro-business taxes as well. There is also a stability to Swiss law that is very underrated as an asset. The laws in Switzerland have been the same for several years, which means that Swiss companies are able to make business plans that reach several years into the future. You’re able to make plans for five or ten years with a solid understanding of what kind of taxes you’ll have to pay in the future.

The economies of different countries are all subject to change at a moment’s notice. It’s important, as a business owner, to create a company that is largely shielded from political fluctuations and laws that hurt businesses. Switzerland is a great place to do that.

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