Investing offshore shouldn't be a knee-jerk reaction to current affairs, but a well-thought-out process that forms part of your overall financial plan, says Van der Merwe.
You don't want to put all your eggs in one basket. Diversification is important, but it's equally critical to make an informed decision when choosing to mitigate savings and wealth risks by spreading investments offshore, says Van der Merwe.
Some offshore jurisdictions - such as Malta, Gibraltar, Guernsey and Mauritius - allow clients to hold assets anywhere in the world in foreign currency, making them popular among South African investors, says Van der Merwe. But while saving for medium- to long-term financial sustainability is vital, there’s no one-size-fits-all approach.
That’s why, when investing offshore becomes a consideration, it’s important to have a clear picture of the currencies, returns, fees and taxes associated with the different options, and the respective risks need to be managed from the outset, she says.