The 10 Tips for SA Offshore Investing is created to help those that want to venture further afield for investment options.The ‘game’ for the average, non-millionaire South African investor has changed a great deal over the last few years. One of the most significant changes has been that regulations governing investment in offshore products have been eased and simplified to the point that the ‘average’ South African looking to build an investment portfolio now has the option to invest in a sometimes daunting array of financial products from all over the world.
But all of this can be rather daunting for the beginner, especially if your forays into the world of investment so far have been very limited. Here then are ten very basic tips to keep in mind as you explore just what becoming an offshore investor could mean for you:
Understand that You Will Not Be Doing Anything Shady – Many people still mistakenly believe that offshore investing is something rather shady and that it is a way of ‘hiding’ money from one’s home authorities. That is not however the case. The main reason for offshore investments is for tax planning and assets protection and it’s all perfectly legal and above board.
Understand That You Won’t Have to Go Anywhere – The movies have a lot to answer for. In some of them the glamorous offshore investor – a spy or his ‘moll perhaps – has to travel to some faraway location to personally invest their money in some fancy offshore bank. This is all simply fiction. Offshore investments services can be accessed through licensed advisors based locally and you may not even have to travel as far as their office to do so either.
Understand That the Investments are Not Hard to Track – Many people are put off the idea of offshore investing as they think that if their money is so far away that it will be very hard to keep track of how it’s ‘doing’. That is not the case however and with the right advisor on your side it’s actually no harder than balancing your cheque book every month.
Understand that Offshore Investing is Not Just for the Very Wealthy – Thanks in large part to the movies again many people still think that in order to make offshore investments you need to have an awful lot of money in the bank. But you don’t have to be an international playboy – or playgirl – to get into offshore investing; it’s a perfectly feasible way for the average small investor to diversify their portfolio.
Make Sure to Request and Read the Prospectus before Investing – Even when a product is recommended to you by a trusted financial advisor you should still do your own personal research on the company and the investment product you are considering and make sure that you personally understand what you are basically getting yourself into.
Brainstorm a Realistic Investment Budget – To help ensure that you don’t get ‘in over your head’ set a realistic offshore investment budget with the help of a financial advisor before you do anything and then do not deviate from it without very careful consideration, even if you think you are onto a really ‘hot’ prospect.
Determine Your Risk Tolerance Level – No financial investment of any kind is ever without risk and before you begin investing anywhere, at home or abroad – you need to determine your own personal risk tolerance level. Put in simpler terms, just how much could you afford to lose, if only temporarily, if things don’t go to plan?
Learn How to Track Your Money – Having a financial advisor is nice but you should also learn at least the basics about how to track your offshore investments. It’s not rocket science to do so, there are plenty of newspapers, TV shows and even software programs and smartphone apps to help you and the whole thing can actually be a great learning experience in general.
Stay Within Your Comfort Zone – No one would ever advise putting all of your investment capital into offshore investments. You need to create a balance between different kinds of investments for the best possible results and if that only includes very modest offshore investment right now that’s just fine.
Get Some Help – You may have seen all kinds of – mainly Internet based – ads for ‘systems’ and e books that will help you ‘DIY’ invest in offshore markets from the ‘comfort of your home with no experience’. Don’t be taken in. A first time offshore investor usually needs help from an actual real live financial advisor in order to avoid disaster and doing so will cost you far less than you might imagine. speak to one of our Professional Consultants, its absolutely free, find out more in comfort and with confidence. Talk to us www.sweidanandco.co.za
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