Premier Wealth Solutions

Premier Wealth Solutions

Direct versus Indirect Offshore Investing

With all the troubles South Africa has faced as a country, investing offshore has become a hot topic. The recent Budget Speech again highlighted some of the issues South Africa is grappling with – bailing out mismanaged SOEs and a bloated public sector wage bill, amongst others. It raises the question: where do we invest our hard-earned money, if not in South Africa?

This article offers a brief look at, and main methods of investing offshore.

Why invest offshore?

A well-diversified investment portfolio should have an offshore component. This allows for access to different companies, economies, and jurisdictions. While retirement funds are capped at a newly announced 35% offshore allocation (40% including Africa), products such as TFSAs, living annuities, investment portfolios, endowments and offshore products offer ample opportunity for offshore exposure.

There are two methods mainly used to invest offshore:

Investing offshore should be carefully considered, as rash decisions may lead to mistakes. Externalize appropriately, with a properly drafted and thought-out financial plan, to make the most of this investment strategy.

Speak to your Edge Wealth IFA for further independent advice.