Why Now is the Right Time to Get Started
Although, as is the case anywhere, life in South Africa definitely has its challenges most of us would not really want to live anywhere else. Gorgeous weather much of the time, beautiful landscapes, a huge diversity in culture, language and, of course, sport; it’s really not a bad place to call home at all. Except perhaps for its devaluing rand and this is why Offshore Investing 2015 is something you should consider.
One thing that many of us do worry about related to living in South Africa though is the often unstable economy and what its up and downs mean for our investments. That is why more and more people who have money to invest are broadening their portfolios into offshore investing. But why should you, as a personal investor with an eye to a relatively modest return consider such a thing? Isn’t offshore investing usually reserved for the mega rich looking to ‘hide’ their money?
The fact is that these days that is not the case at all. In 2015 there are a number of good reasons why any South African investor should at least take a look at offshore investment. Here are just three of the best ones.
A Better Retirement
We South Africans do love to travel and for many of us the daily grind is made a little more palatable by the thought of being able to work towards a retirement spent indulging some of those desires. However, with the constantly fluctuating exchange rates by the time you come to start spending that hard earned retirement money it may not last too long overseas.
As an offshore investor however you can choose to invest money for retirement offshore in a stronger currency. Regulation 28 of the Pension Funds Act of 2011 states that local retirement funds are only allowed to invest up to 25% of their portfolio outside of South Africa. For you as an individual it may make better sense to invest more than that in an offshore plan that will allow you 100% access to your portfolio when it’s time to shed your work clothes and begin enjoying some leisure time after all of those years of hard work.
Putting Your Eggs in Lots of Baskets
As the old saying goes it’s never wise to keep all of your eggs in one basket at that holds as true for financial investments as anything else. If the recent financial catastrophe in Greece has taught us anything it is that even bigger economies than ours can fail very quickly. Investing everything you have available in the local economy could therefore prove disastrous. Offshore investing will allow you to invest in different currencies and gain exposure to some of the major, rather stable, international shares like Apple, Microsoft and Coca Cola to help make your overall portfolio a little more stable even in the face of uncertainties at home.
The politics of South Africa are a general concern for most of us and many financial experts warn that an event occurring that may have a significant negative impact on local investments is certainly far from an impossibility. By moving some of your investments to larger, ‘market safer’ countries you will, in one way, potentially be investing in the safer option, even though you may not ever have considered offshore investment in that way before.
As is the case for any other type of investing there are risks involved in offshore investing and a good financial advisor will make sure that, as far as possible, you are more than aware of what they might be. But the bottom line really is that in 2015 anyone interested in investment opportunities to secure themselves a better future should give offshore investing in 2015 a long, hard look.