Corb7 International February 24, 2021 Newsletter

International Business

Editor’s Note

Bitcoin meets Andy Mellon

Andrew Mellon was a Pittsburgher and an iconic member of the historic family that founded Mellon Bank.  My father once met Andrew.  Dad was a child selling raffle tickets and accidentally (on purpose) wandered onto the Mellon estate, which is now a park in the Shadyside neighborhood of Pittsburgh.  As my father told the story, it was an early weekend morning, and Mr. Mellon was standing in his garden wearing a robe and drinking a cup of coffee when my dad approached him and asked if he wanted to buy a raffle ticket.  Mr. Mellon was extremely gracious and bought all of them before sending my father on his way.  Thus, my family’s brush with Pittsburgh royalty abruptly ended.

In his wildest dreams, Mr. Mellon would not or could not dream of what his bank did two weeks ago.  Bank of New York Mellon-Corp., the nation’s oldest bank, has stated that it will now accept the once-fringe digital currency of bitcoin.  The custody bank said it will hold, transfer and issue bitcoin and other cryptocurrencies on behalf of its asset-management clients. This represents a major shift and we thought deserves much more attention than it has received in the media. It will be fascinating to watch how this plays out.

A brief timeline of bitcoin:

2008: Satoshi Nakamoto published the bitcoin his white paper that established principles for a new electronic cash system. To this day, no one knows who Satoshi Nakamoto really is.

2017: JPMorgan CEO Jamie Dimon called bitcoin a fraud.

2020:  Bitcoin trades above $10,000

2021:  As of Tuesday, February 24th one bitcoin equals $48,376

– Bitcoin has had one of the most volatile trading histories of any vehicle and would be considered speculative.  Please consult with your investment professional prior to considering taking a position.

International Business

Business Tools

How to Prepare for 2021 Tax Season in U.S.

April is synonymous with many things. Many people get their first glimpse of spring blooms in April, while families of faith look forward to gathering for Passover and Easter. Sports fans may welcome the return of professional baseball in April, while scholastic athletes may associate April with the return of spring sports. Though each of those things tends to be welcomed with open arms, one day in mid-April may not be greeted so warmly.

Each year in the United States, April 15 marks the official deadline for taxpayers to file their tax returns. Taxpayers in the United States must file their returns by this day or face penalties. Though the filing deadline may be in mid-April, it’s wise for taxpayers to begin preparing to submit their returns much earlier than that. For those who have not done so in the first two months of the year, March is a great time to begin preparations to ensure returns are accurate and filed on time.

The Internal Revenue Service offers the following advice to taxpayers who want to get a head start on their returns so they make sure they file on time in 2021.

· Gather and organize your records. Many people rely on a professional to work on their returns, and April is such professionals’ busiest time of year. As a result, it’s imperative that taxpayers have all their necessary documents ready prior to their appointments. Any delays could force appointments to be rescheduled, and there’s no guarantee tax professionals will have any open dates on their calendar as the filing deadline draws closer. The IRS notes taxpayers will need their W-2s from employers, forms 1099 from banks and other payers and other income documents and records of virtual currency transactions. In addition, people who received an Economic Impact Payment in 2020 should make sure they have Notice 1444, which includes the amount of the payment and how it was received, as they will need that to file their returns. It’s also important that people who received unemployment income recognize that such income is taxable, so they will need a record of that income, especially if they did not pay taxes on it when it was received.

· Where applicable, confirm your Individual Taxpayer Identification Number has not expired. The IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security number from the Social Security Administration. The IRS notes that all ITINs not used on a federal tax return at least once in the last three years expired on December 31, 2020. In addition, all ITINs issued prior to 2013 with middle digits of 88 expired at the end of 2020. ITINs with middle digits 90, 91, 92, 94, 95, 96, 97, 98 or 99 that were assigned before 2013 and have not already been renewed also expired at the end of 2020. Visit www.irs.gov to learn more about ITINs.

· Contact your tax professional. 2020 was a complicated year, and that figures to create some unique challenges as people file their 2020 tax returns. So it pays to contact your tax preparation professional with any questions you have well in advance of April 15. That’s true for all taxpayers, but especially so for anyone who filed for unemployment, received an Economic Impact Payment or dealt with any other abnormal circumstances in 2020 that could affect their tax returns.

Taxpayers may face unique challenges as they begin to work on their 2020 tax returns. More information is available at www.irs.gov.

International Business

  Business Perspective

Americans are Welcome in Switzerland!

Since the United States is the world’s largest national economy, it is understandable that US investors think that it is fine to hold all of their investments within US borders in US dollars. Over-weighting investments in their home country is understandable, but a home-bias isn’t optimal.

While the American stock market has been incredibly strong, and by some definitions qualifies for having the longest bull market in history, it hasn’t always been that way and it’s unlikely to maintain that streak forever. It’s impossible to predict what will happen with the US stock market going forward, but, historically, US stocks have also seen long periods of under-performance compared to international stocks.

Owning an US-centric portfolio can lead to sub-optimal risk-adjusted returns. According to best practices in portfolio management the volatility of an investment portfolio is reduced by adding international diversification to the overall wealth strategy. Global diversification helps to mitigate the risk of local downturns while capitalizing on growth over the long term.

Considering that world’s equity assets make up over 50% of invested assets versus the US’ 43%, it makes sense to include a good portion of diversified international assets in a portfolio to reduce the risk of over-weighting one particular country.

What percentage of an American investor’s portfolio should be invested internationally? Some advisors will claim that 50% is fitting, while others suggest anywhere between 5 and 30%. Beginners may choose a smaller percentage, others more comfortable with going global up to 30% or more.

True international diversification means that a portfolio will never be the portfolio with the highest returns, but it will also generally be better equipped to handle local crises and downturns. Appropriately designed, an internationally-diversified portfolio not only helps to avoid the risk of local downturns, but also to capitalize on global growth over the long term.

Holding some emerging market mutual funds at a local bank, even in other currencies, is not true international diversification. Going to another jurisdiction outside of the United States, to other non-American financial institutions, holding other foreign investments and other currencies is the real thing when it comes to effective risk diversification. Engaging a wealth manager with in-depth international experience and a global outlook with a different perspective than a local investment adviser leads to true international diversification.

US financial professionals for the most part, understandably focus on the US market, American financial institutions and US dollar investments. However, to achieve greater resiliency for an overall portfolio through international diversification, a global-oriented wealth manager will target different investments than a domestic advisor. Holding a portion of a portfolio in a bank outside of the American banking system provides institutional risk diversification and greater flexibility. Currency diversification provides a hedge against a falling US dollar. The prudent investor shouldn’t walk around blindfolded but should prepare for bumps which may arise along their home-market roads.

Where to Go? Welcome to Switzerland!

With the turbulence of the past left behind, Switzerland remains the global leader for cross border private wealth management with a world share of over 25%, of which about half is from investors abroad.

The highest level of economic and political stability, neutrality, high-quality services and extensive expertise and experience is Switzerland’s claim to fame for its long-term success as a leading, innovative financial center. Especially during times of crisis and increasing volatility, the world’s wealthy turn to Switzerland as a safe haven for their assets. Recently, Switzerland has been named the world’s most resilient country best able to handle the pandemic crisis and it’s aftermath.

The Swiss traditions of reliability, continuity and excellence and a high regard for privacy and discretion in an increasingly transparent world are qualities appreciated by astute international investors concerned about the preservation of their assets.

Switzerland: Perhaps the safest place for assets
in an increasingly unsafe world!

Swiss wealth managers registered as an Investment Adviser with the Securities and Exchange Commission in the United States focus on providing US tax-compliant wealth management services to US persons domiciled in the United States and abroad.

Providing services, giving advice, telephone calls, correspondence and personal meetings with clients, or promotional activities for potential clients and strategic agreements with US business partners are allowed without restrictions. US reporting requirements are also clear and the necessary, accurate documents are provided in a timely manner to fulfill reporting requirements and tax obligations.

Americans are welcome!

A relationship can easily be established with a Swiss SEC-registered wealth manager and an internationally-diversified portfolio held with a Swiss bank that welcomes American clients can be set up without leaving home. The Swiss wealth manager of choice handles every step of the way.

Swiss SEC-registered wealth managers range from larger, bank-associated firms to the US-focused entities of Swiss private banks as well as smaller and more personal independent wealth management boutiques. Minimum amounts of investment start at USD 100,000, USD 250,000, USD 500,000 or 1 mn or more depending on the individual wealth manager. While travel to the US to meet with clients and advisers was regularly on the program, it is on hold at the moment. Nevertheless, Swiss wealth managers are up-to-date with online meetings and conferences and Switzerland is never more than a phone call or click away.

Swiss SEC-registered investment advisors are also happy to collaborate with American financial professionals and other advisors in co-counseling their clients to develop an internationally-diversified portfolio to complement a US-based portfolio already in place.
Finding a suitable Swiss SEC-registered wealth manager is easy.  The Swiss platform, AW★SWITZERLAND lists them all, in an easy-to-access manner, individually, alphabetically and regionally.

Getting the touch and feel of a wealth manager of choice before an initial contact by comfortably and efficiently browsing through their listings with access to their websites, SEC registrations, ADV Part 2 and Part 3 brochures with information on company size, assets under management, minimum amounts of investment, strategies, fees etc. makes doing the homework and narrowing down the wealth manager of choice easy. An initial email or conversation will start the process.

by Anne Liebgott, Founder
AW Switzerland

Americans Welcome

International Business

Executive Psychology

Philanthropy

The Power & Benefits of Giving Back!

The Mayo Clinic Health System says researchers have attempted to measure the benefits that volunteers receive from their volunteer efforts. It has been dubbed a “helper’s high.” Various health benefits have been noted, but the perks go beyond that.

· Make new friends: Volunteerism is a great way to make new friends and strengthen existing relationships. Having common ground, like a volunteer activity, is a great way to build a friendship with like-minded individuals.

· Increase social skills: Volunteering enables you to meet new people from all backgrounds. You also may be placed into different situations and have to act on the fly. This can help you develop social relationship skills.

· Help build community: The Corporation for National & Community Service says that volunteers help strengthen their communities through volunteer service. Connections are made with the people you are helping and with other volunteers.

· Improve self-esteem: When teens or young adults volunteer, they get positive responses to their efforts, which can improve their self-esteem. Self-esteem can keep people away from drugs or alcohol or potentially compulsive behaviors.

· Helps stave off dementia: There is some evidence that people who volunteer may be at a lower risk for dementia, including Alzheimer’s disease. This is particularly helpful for senior volunteers.

· Overcome loneliness: The Campaign to End Loneliness indicates that close to 45 percent of people in the United States and the United Kingdom. admit to feeling lonely. Volunteering is a simple way to reverse such feelings.

· Reduce stress levels: By devoting time spent in service to others, people can get a sense of meaning and appreciation that helps them to slow down. That can help them feel less stress and all the negative consequences that come with stress.

Volunteers often walk away from their experiences benefiting as much as the organizations that they chose to help.

Crowdfunding is another way to give back and can be a great way to raise money for a good cause.

The effectiveness of crowdfunding can be seen in just how much money is raised through this relatively recent platform each year. According to the small business financial resource Fundera, crowdfunding campaigns raise $17.2 billion each year in North America. But raising money and having a successful campaign are not necessarily the same thing.

Crowdfunding platforms differ, but some return donations if the campaign’s financial goal isn’t met. People who want to start a crowdfunding campaign to support a good cause should know that, according to Fundera, campaigns that raise at least 30 percent of their goal within their first week are more likely to reach their goal.

One way to improve the chances of being successful is to include videos in your solicitation efforts. Fundera notes that crowdfunding campaigns with videos earn 105 percent more money than those without videos. In addition, campaign organizers should not downplay the effects of providing routine updates to followers. Data from Fundera indicates that campaigns that regularly updated followers earned 126 percent more money than campaigns that did not provide updates.

Lifestyle

Executive Fitness

7 Surprising Health Benefits of Walking!

Individuals looking for a way to incorporate exercise into their lives need look no further than their own feet. Walking offers numerous health benefits to people of all ages, and it’s particularly beneficial to fitness novices. Walking can facilitate a transition between inactivity and increased intensity for those who may have been away from exercise for some time.

According to Dr. Thomas Frieden, former director of the Centers for Disease Control and Prevention, walking is “the closest thing people have to a wonder drug.” Any physical activity is a boon to personal health, and walking provides a host of benefits.

1. Strengthens bones: Walking can slow down the loss of bone mass due to osteoporosis. Arthritis.org notes that a study of postmenopausal women found that 30 minutes of walking each day reduced their risk of hip fractures by 40 percent.

2. Boosts cardio endurance: Regular walks can improve cardiovascular endurance, which can help people progress to more rigorous physical activity.

3. Burns calories: People can walk to burn calories and maintain or lose weight. The number of calories burned will depend on how briskly people walk, the distance they cover, their body weight, and the terrain on which they walk.

4. Improves cardiovascular health: The American Heart Association recommends adults get at least 150 minutes of moderate-intensity activity each week. Walking can fit that bill. Walking five days a week can reduce risk for coronary heart disease by roughly 19 percent, according to a report in the European Journal of Epidemiology.

5. Counteracts effects of weight-promoting genes: Researchers at Harvard Medical School looked at 32 obesity-promoting genes in more than 12,000 people who walked briskly for about an hour a day. Walking reduced the effects of weight-promoting genes by 50 percent.

6. Tame cravings: People who have a sweet tooth can take notice that walking may steer people away from overindulgence. A pair of studies from the University of Exeter found a 15-minute walk can curb cravings for chocolate and reduce the chocolate consumed in stressful situations. Walking also helped to reduce cravings for other sugary snacks.

7. Reduces joint pain: Walking improves blood flow and helps protect the joints. This can keep people from developing arthritis and other stiffness.

Walking has many health benefits that can support the entire body.

Lifestyle

 Spirits & Cuisine

Wine Chips

What is better during a pandemic than wine?  How about wine with chips designed to complement the wine?  If we have your attention then the video above is for you.

WineChips.com

Lifestyle

Leisure & Style

Flying Cars!

Meet George Jetson!  

The path to making what was once cartoon fantasy, come to life, is continuing.  Remember, Dick Tracy speaking into his watch like it was a phone was science fiction not that many years ago.  Well, now Flying cars – think of “The Jetsons” – are on the immediate horizon and my wife thinks riding my motorcycle is dangerous.

The Federal Aviation Administration (FAA) has granted Terrafugia Corporation a Chinese-owned company based in Woburn, Massachusetts a Special Light-Sport Aircraft airworthiness certificate.  Called the Transition, this craft is essential a flying car.  The two-seat vehicle will be geared to meet safety standards from the FAA and the National Highway and Traffic Safety Administration (NHTSA). It’s a new world!

Lifestyle

Travel

Switzerland & COVID

The Swiss plan to reopen shops, museums and sport facilities starting on March 1st as part of their exit strategy from the COVID -19 restrictions.   Other restrictions, however, will remain in place.

Here is an update:  Swiss COVID Restrictions

Business Services

Business Acquisitions & Funding

Rare Opportunity
90-Year-Old Vintage Swiss Trust Company for Sale!

 Now Available! 

For Details on this listing,
Explore Additional Opportunities or Complimentary Consultation:

Call:  +1-310-601-3115 (Beverly Hills Office)
 or
Email: contact@corb7.com