2oceansvibe News | South African and international news

Sponsored by RSAWeb rss
2ov Radio
  • Home
  • About
    • Terms and Conditions
    • Seth Rotherham
  • du Cap Collection
  • Café du Cap
  • Cabine du Cap
  • Media Packs / Advertising
  • Contact
    • Contact
    • Anonymous Tips
    • Twitter
    • Facebook
Seth Rotherham
  • A Quick Look At The Basics Of Tax-Free Offshore Investing

    04 Mar 2019 by Carrie in Consequence, Economics, Finance, Lifestyle, Partners
    Related Posts
    • Worried About The Future? We Look At Some Of The Best SAFE Investments In SA
    • SA's Most Expensive Day School Revealed
    • Watch Out For These Four Threats To Your Post-Retirement Plans
    • Keen To Never Work Again? Calculate Your 'Financial Freedom Number' Using This Formula
    • How Much You Should Have Saved By 40 To Retire Comfortably

    If you strike up a conversation about investing, the phrase ‘portfolio diversification’ is likely to come up at least once.

    That’s because putting all of your eggs in one basket is a bad idea. A diverse portfolio is key to keeping you afloat if one of your investments goes south, and it’s also a good way to grow your private wealth in different ways.

    One of those ways is offshore investment, and it’s not as daunting as it may sound.

    Here’s Fin24 with the basics up front:

    The South African stocks market is quite undiversified compared to others – if a dominant player like Naspers drops on the JSE, there’s a ripple effect. This makes putting 100% of your investment into the local market risky.

    There are risks involved in investing offshore as well, like currency fluctuations, but in general, if you invest in a wider range of stocks and themes, you reduce your exposure to risk.

    Plus, now is a great time for South Africans to have a portion of their portfolio offshore for a number of reasons.

    South Africa is facing a lot of negative headwinds at the moment – at least in the short term – and yet the Rand has been quite strong since the start of the year, so it is an opportune time to get some offshore exposure.

    Right – on to how to invest the easy way.

    The widely accepted perception is that you have to have big bucks to invest offshore. The reality is that new products on the market have sidestepped all of this and made it easy for the average South African to invest offshore.

    Perhaps the easiest way is to invest in a South African unit trust, which in turn invests in international markets. No offshore account or broker needed…

    You don’t have to jump through any international regulatory hoops to invest in these types of offshore investment vehicles, and it can be very cost effective

    There are a number of options to choose from, all resulting in the same thing: a diversified portfolio.

    This brings us to investing tax-free. Yep, you read right, tax-free offshore investment is a thing you can do without breaking the law.

    South Africans are allowed to invest a total of R33 000 per year (maximum lifetime contribution of R500 000) into a tax-free savings account (TFSA).

    A TFSA is not a single, standardised investment vehicle. It can be money market or fixed term bank account, a JSE-listed exchange traded fund, or a unit trust that invests offshore. You see where I’m going with this…

    You can to take your annual tax-free savings allowance and invest it into a unit trust that invests offshore and pay zero tax on it, locally and abroad.

    There is no limit to how much your TFSA investment can grow, which means that if you choose an incredibly well-performing fund, you could significantly boost your savings with no tax ramifications.

    In fact, every South African over the age of 18 is allowed to take up to R1 million a year offshore without applying for permission from the South African Reserve Bank.

    There are legal and tax ramifications for the above, though, that need to be taken into consideration with the above amount.

    Best practice if you want to invest offshore is to get the help and guidance of professionals, like the experts at Consequence Private Wealth.

    Consequence believes that the consequences of decisions made today will bear fruit over the years based on the sound principles applied at their inception.

    It’s precisely those sound principals that they’ll apply to help you invest offshore responsibly and diversify your portfolio.

    Added bonus – now you can bust out all those buzzwords the next time the topic comes up in conversation, safe in the knowledge that someone else is handling the tricky part.

    [source:fin24]

    • ← Shoddy Work Leads To Parts Of Lion’s Head Hike Being Cordoned Off [Images]
    • How Much You Need To Earn To Be In SA’s Top One Percent →
    • Tweet
    • Tags:
    • consequence
    • consequence private wealth
    • investing
    • investments
    • offshore
    • offshore investing

    Latest News

    • Some Like It Hot – Check Out The Festival Of Fire This Weekend

      [imagesource:flickr] SA's hottest chilli festival is geared up to get tongues burning t...

    • Everything You Need To Know About The Best Treatment To Overhaul Skin Scarring

      [imagesource:skinkraft] If you're struggling with scarring, acne scarring, or deep wrin...

    • Marriage Proposal During Baseball Game Goes Horribly Wrong

      [imagesource:wallpaperflair] I speak from experience when I say the hours before a prop...

    • Trevor Noah And Roger Federer Get Lost In Switzerland For New Film [Video]

      [imagesource:instagram/trevornoah] Son of Patricia and our favourite comedic export, Tr...

    • Scientists Confirm Plants Makes Sounds When Harmed, And Now You Can Hear Their ‘Cries’

      [imagesource:flickr] We might have taken a few digs at the vegans this week, but surely...


    • 2oceansvibe Partners

    • CONTACT US
    • GOT A HOT STORY?
    • 2oceansvibe Radio
    • 2oceansvibe Media
    • Media Pack
    • Seth Rotherham
    • Café du Cap
    • Cabine du Cap
    • Cape Town City Accommodation
    • Terms & Conditions
    • Business
    • Media
    • Entertainment
    • Tech/Sci
    • World
    • Travel
    • Lifestyle
    • Sport
    • Politics
  • Follow

    2oceansvibe.com is part of the 2oceansVibe Media Group

    DMMA Logo