When it comes to planning for the future it makes sense to consider all options especially from a South African point of view. Why keep all your eggs in one basket if you can export your wealth from South Africa for safe re-investment offshore, regardless of whether you live in South Africa or abroad?
The accessibility to financial markets and investment funds offshore has opened up a multitude of opportunities that were previously only reserved for the educated and informed few.
The advantages of moving wealth
- Hedging against the ZAR
This simply means exchanging your rands for a hard currency – say Australian dollar (AUD), that is a stronger currency – your buying power in future would be more secured.
- Education for your children
Having investments offshore allows you as parents the capability to afford your children the opportunity to obtain tertiary education in any country of your choice.
- You get to stay in South Africa
Should you have considered physically moving offshore, and you could not satisfy another country’s visa requirements, you still have the opportunity to emigrate your wealth.
- Tax opportunities
With the trend of South Africans living and working all over the world, wealth is in most instances accumulated offshore. When you however decide to come back home, there are various local tax opportunities to take advantage of. For example, receiving a pension from overseas – this income is currently tax-free in SA.
- Exchange control
South Africa is still one of a few countries in world where the government regulates the flow of capital to and from the country. Un-controlling your personal wealth is a good idea given the global trend to mobilize and diversify investments.
In a developing country with equally huge challenges and opportunities, it is possibly the safest option to consider your own personal financial emigration plan.