Investing offshore key

It is a misnomer that offshore investing and international banking is only for the rich. The building blocks towards an international banking and investing solution need to be put in place early to ensure a slice of money or assets are housed safely offshore in a trusted jurisdiction. Anyone can begin that process quickly and easily, no matter where they are living and what their current earnings or assets are.

From “seafarer” accounts for students working on a yacht for a few years, to older professionals realising they don’t have enough money offshore, recent advances are opening the door to user-friendly international banking and investing solutions.

Digital innovation now enables savers to make payments abroad in multiple currencies from their local account. From a basic bank account, the solutions get more advanced, with the next level focusing on capital protection using offshore trusts and share portfolios.

Spreading money across asset classes and jurisdictions are based on the needs of a saver, which is the best way to reduce any shocks to a portfolio caused by uncertain events. South Africans are still more prone to spending than saving, however. We need a culture shift when it comes to saving. It should become quite normal to save 15-20% of what you make and then not touch it.

The biggest constraint is thinking there is not enough money to begin saving – never mind saving offshore. The target could be to put some money offshore every quarter, or month, and to gradually increase this. If you don’t cater for offshore exposure you will fall short of the ideal saving outcome.

Rand weakness is not a reason to rush offshore, however. The reasons to invest offshore are more diverse and long-term in nature, but ultimately relate to ensuring you retire wisely and can meet a long-term financial goal.

International personal banking enables people living or working abroad to manage their finances in a central location. Here are some questions you should ask to determine if you need an international banking solution:

Do you work or travel abroad a lot?

Do you receive income in multiple currencies and want to access it from one central place?

Do you invest in multiple currencies?

Do you want to send money to your family who live abroad?

Do you want to diversify your savings to protect yourself from currency fluctuations?

Do you want to be able to make payments in multiple currencies?

Do you want a simple solution to managing your finances that it is accessible 24/7?

Michael Nudlbichler is the head of offshore services for Standard Bank Wealth International