The world of offshore investments is no longer an exclusive domain reserved for the wealthy elite; it has become accessible and more affordable than ever.
Let’s explore the five essential facts you need to consider before embarking on your offshore investment journey:
When we earn a salary or income in South Africa, we are all exposed to the domestic economy. As such, country-specific challenges and the volatility of the rand can materially impact the purchasing power of our income over time as many consumer products such as fuel, food and technology are priced in foreign currencies and are imported.
You may also have future international expenses, such as education and travel, or plan not to retire in South Africa. In all these instances, it is sensible and probably prudent to build up a pot of capital outside of South Africa which can effectively assist in meeting your long-term financial planning objectives.
Some incentives exist making it more accessible, for instance, Coronation has made its offshore funds more accessible by reducing the minimum initial investment required to $500.
Domestic banks are also making it easier and more affordable to obtain foreign exchange and open a foreign-currency bank account, while the emergence of global money apps such as Standard Bank’s Shyft is also making it easier to turn rands into foreign currency.