Before Buying International Shares you must know the Basics. Maybe you have been told, maybe you have just read it on the Internet or in a magazine but the chances are that you know if you are serious about saving for retirement you should be doing more with your money than just stashing it away in a standard interest bearing savings account. There is nothing wrong with doing that of course, it is just not a very aggressive way to grow your money. If you really want your money to work harder for you, you need to at least consider making a foray into the stock market, and these days you don’t need to limit your thinking to South African stocks, the world’s stock markets are your ‘oyster’.
Why do People Invest Offshore?
Offshore investing often has a rather exotic, mysterious air about it. It sounds to many like something that is reserved for mobsters or James Bond villains. It’s for rich people who stay rich by hiding their money away from the taxman. Except that is not the case. You do not need to be a millionaire, or a financial genius, to make foreign investments and you don’t need to worry about being involved with strange, risky stocks. Offshore investing actually allows South Africans to invest in the kind of stable, solid stocks that many consider ‘no brainers’; Coca Cola, Apple, Google and other ‘safe bets’ that simply were not available to them before.
That having been said there is a lot of innovation going on all the time right now all over the world and for the investor willing to take a bigger risk having the opportunity to invest in stocks from all over the world may mean they could get in on the ‘ground floor’ of the next startup company to ‘hit it big’ a la Instagram or SnapChat.
This is not to say that all of your money should leave the country. The smartest portfolio is a balanced one, one that includes both international stocks and the best (for you) that is on offer domestically. The economy here at home in SA is at times a little volatile but it still offers some great opportunities.
Where to Get the Right Advice
Whenever anything gets ‘hot’, especially when it comes to money making opportunities, there are usually people literally crawling out of the woodwork claiming that they can help the less experienced succeed. If you are a novice investor if you are considering getting into buying foreign stocks and offshore investing you will need help but you also need to be a little selective about where you get that help.
As tempting as some of those ‘make millions’ offers sound you need to proceed with caution. While it is not exactly rocket science successful offshore investing does call for an understanding of the way foreign markets work, of the politics and other factors that may affect the performance of a certain stock and other very important, but basic, factors. A new investor considering diverting some of their assets offshore should begin their ‘adventure’ with a reputable financial advisor or brokerage. You can then take the initiative to learn more as you go along which can actually turn out to be a rather fascinating educational experience as well as a great way to increase the value of your nest egg.
Before you start Buying international Shares speak to a Professional Consultant at www.sweidanandco.co.za for the best independent advice.
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