Ferdi van Heerden, chief executive officer at Momentum Investments
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Living abroad has become increasingly feasible with the rise in new technologies, which has made it possible to work from any location. From young professionals to retirees, being a global citizen is no longer an exclusive privilege.
In a time where global citizens are the norm, it is essential for financial advisers to understand the intricacies of offshore investments and the best ways to structure financial plans to meet the specific goals and needs of each client.
While thinking about offshore investment options, a well-rounded investment strategy is necessary. For South African investors, comprehensive and effective diversification is more important than ever. However, with so many products, platforms, and channels, never mind the technical and legal challenges, the need for professional advice is essential.
Building on the success of our Global Citizen masterclass series held in April and September last year, in March we hosted our latest edition of this insightful conversation. During this session, we shifted our focus to the important aspect of international succession and estate planning and how this plays a role in determining the appropriate structure for clients.
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At Momentum Wealth International, we know that investing offshore can
seem tricky.
With our true offshore investment platform, more than 20 years of
delivering excellence, and the latest technology at your fingertips, we make it a personalised and exciting journey for you and your clients.
Speak to your Momentum Consultant today to find out more
about a world of investing possibilities, or visit momentum.co.gg.
Momentum Wealth International Limited is licensed by the Guernsey Financial Services Commission to conduct Investment Business. Momentum Wealth International Limited is
an authorised Financial Services Provider pursuant to the Financial Advisory and Intermediary Services Act No. 37 of 2002 in South Africa. Momentum Investments is part of Momentum Metropolitan Life Limited, an authorised financial services (FSP6406) and registered credit (NCRCP173) provider.
We live in extraordinary times, but we often fail to make sufficient plans for when we die. What happens to our debts and assets? If they are domiciled in different countries, estate taxes and requirements could be very different. Who should your beneficiaries or dependents get in touch with to help them settle global financial and tax issues? As an example it can take several years for a tax status to be cleared in particular jurisdictions. The global citizen should make sufficient plans to address all of this.
There are numerous factors to take into account when it comes to financial planning for global citizens. Firstly, you need to think about inheritance laws and the tax implications in different legal systems. Secondly, there are investment complexities relating to globally diverse portfolios. Thirdly, it would be necessary to work out the overall process that your executor and family should follow. Fourthly, the wealth distribution among beneficiaries residing in different countries has to be fair. Lastly, and most importantly, having a trusted adviser who can advise and support you and your dependents on all of these aspects, is key.
As it frequently takes years to ensure that financial affairs are set up appropriately and robustly, such planning should start as soon as possible. Because of the different double tax treaties and the complexities of local tax legislation, global citizens require the assistance of more than one adviser. It is important to make sure that global affairs are structured by reliable, specialised advisers in solid, mature jurisdictions who are supported by established product providers and solutions.
As an expat, I have learned the importance of having a trusted financial adviser with global expertise, who helped clarify how I need to think about my global affairs. This helped me plan better and reduced my anxiety. While I still receive assistance from my South African adviser, I also have relevant specialists in other countries to support me in my retirement goals. At times, they need to engage with each other and review my global affairs to make sure everything is in order in each jurisdiction.
With a globally-minded adviser, I sincerely believe that South African clients can globalise their financial world. It is imperative that financial advisers comprehend the significance of global estate planning and ensure that their clients who are global citizens receive appropriate advice.
Momentum Wealth International, our offshore investment platform, is your gateway to global investments. With more than 20 years of delivering excellence and the latest technology at your fingertips, we make it a personalised journey for you. For more information please visit momentum.co.gg.
Momentum Investments is part of Momentum Metropolitan Life Limited, an authorised financial services (FSP 6406) and registered credit (NCRCP173) provider.