Going offshore: Are you really sorted for retirement?

A reasonably common response when discussing international investments with prospective clients, is that they are “already sorted”. Understandably, people are apprehensive when disclosing their finances to a relatively unknown adviser. Often, they don’t have the inclination to dedicate the necessary time to ensure they have a sound international investment plan.

The uncomfortable truth, though, is that after a 45-minute discussion with me, these same individuals are often aghast at the incorrect advice they have been given. When the disillusionment hits, they recognise their limited knowledge to make truly informed decisions.

Some other common responses I get are:

• “I live in South Africa and plan to retire in South Africa, so why do I need to invest offshore?”
• And one of my favourites: “My local investments have returned me over 10% per year in a balanced portfolio, so why would I want to invest internationally and receive 5% per year?”

The mere fact that these questions are being asked highlights just how much education is required. Besides the obvious answers of diversification and inflation, there are also the important considerations of reporting, taxation and succession planning.

We live in a time of seemingly never-ending increases in various forms of taxation and ever-changing financial regulation and scrutiny. How you hold an international asset is equally important as the actual investment.

I cannot stress how important it is to have a discussion with a specialist international adviser. Carrick Wealth is just this. Our initial consultations are free of charge. We only earn our fees once an investment has been made and strive to offer the best service in the industry to retain you as a client. We do not receive any fees from fund managers, so there is no conflict of interest and our advice is truly impartial and objective. More importantly, we know the right questions to ask to ensure your personal plan is tailored to your and your family’s needs.

Should you wish to discuss, or begin, your plan with a specialist international financial advisor please click here.

Anthony Palmer CA (SA)

Director: Investments and Products, Carrick Wealth

Published on BizNews.