'Offshore investing is a great idea – but be careful where you put your money'
The purpose of offshore investments should be to diversify your risks and opportunities away from South Africa
Consider ways to limit transaction costs
Places such as Ireland, Guernsey, Switzerland, or Malta are favourable as non-residents do not pay tax
For most small investors, a rand-based monthly debit order to a global investment is a good idea
Ever heard the saying, “Don’t put all your eggs in one basket?”
South Africa's share of the world's Gross Domestic Product is around 0.4%.
If you are only invested in South Africa, you are putting all your eggs in the tiniest of baskets – and the basket is looking a bit worse for wear!
The Money Show’s Bruce Whitfield interviewed Warren Ingram, a Personal Financial Advisor and Executive Director at Galileo Capital (scroll up to listen).
Ingram explained how he is being inundated by anxious clients clamouring to send their money abroad.
It is good to diversify your investments but be careful where you invest.
My inbox is flooded with questions like, ‘Can I cash in my Provident Fund, pay the tax and send the money out, and how quickly can we do this? How fast can we convert everything?’…Warren Ingram, Personal Financial Advisor - Galileo Capital
Your first purpose is to diversify your risks away from South Africa… Choose one currency, and try not to be too clever… Buy the dollar… Buy companies in America, the UK, Europe, China, the rest of Asia, and Japan…Warren Ingram, Personal Financial Advisor - Galileo Capital
When you convert your rands… limit transaction costs… Don’t focus on convenience and speed…Warren Ingram, Personal Financial Advisor - Galileo Capital
Look at places like Ireland, Guernsey, Switzerland, or Malta… They don’t charge non-residents with any form of tax… You only pay tax in South Africa…Warren Ingram, Personal Financial Advisor - Galileo Capital
Doing monthly debit orders into rand-based, global investments is not a bad idea at all…Warren Ingram, Personal Financial Advisor - Galileo Capital
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