Offshore investing via easily-accessible and simple solutions has become a key strategy in the local investment environment. But how do you get started?
Here are five tips to launch a hassle-free offshore investment strategy.
1. Appoint a qualified financial planner
Even with simple processes, offshore investing can be overwhelming. It is not sensible to embark on any kind of investment without involving a qualified financial planner. You need the partnership with a financial planner to help you design an investment portfolio that is tailored to your unique needs and risk profile.
2. Consider the red tape
Consider solutions and products that offer administrative ease and those that enable you to invest offshore with relatively little hassle. Legal and tax implications have to be taken into account in the planning process when investments are made in foreign currency. Tax implications not factored into the product or the planning can be costly.
3. Consider investing part of your retirement savings
If you have opted for early retirement or have been retrenched, you may want to consider investing a portion of your retirement fund offshore. You may withdraw up to a third as a lump sum on retirement or retrenchment. You could also diversify that capital by investing in foreign markets, industries and funds.
4. Choose an investment partner with a proven track record locally and abroad
Ensure that you select the right partners to help you navigate the large offshore fund universe with its many unfamiliar asset managers and funds. Your investment partner can, in fact, prove to be key to your success. Reputation and research are particularly paramount. Your investment partner should have:
- A reputable brand
- Experience of at least a decade
- Strong research capability and the skill to perform a deep-dive study of funds and asset managers
- A long-standing track record in the investment industry