Moving money abroad

The_Ogre

The_Ogre

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I noticed now the rand is at 11.72 to the dollar. This country is going to the dogs

I have some money saved up overseas, but have considered moving 80% of my local savings/investments over.

Anybody else started doing this yet?
 
you dont have to physically take your money over just invest offshore.
 
Would also be interested in any suggestions. I thought of KrugerRands through FNB?
 
YingYang said:
I noticed now the rand is at 11.72 to the dollar. This country is going to the dogs

I have some money saved up overseas, but have considered moving 80% of my local savings/investments over.

Anybody else started doing this yet?
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Moving some money out this year and next. Get your SARS clearance and you'll be able to move 4M a year (which still equates to very little in 1st world currency unfortunately).
 
JayM said:
Moving some money out this year and next. Get your SARS clearance and you'll be able to move 4M a year (which still equates to very little in 1st world currency unfortunately).
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Indeed, one of the questions on the Canadian questionnaire is along the lines of asking if you have over CAD 300 000. A while back that was R3M, now it's a lot more.

4M per year?... cripes we have some wealthy members on this forum.
 
Beachless said:
you dont have to physically take your money over just invest offshore.
Click to expand...
I'm actually thinking of taking it offshore.

I think I'll feel much better if my money is in USD or EUR in a bank account abroad.
 
Standard Bank offer a full overseas bank account via Standard Bank Isle of Mann. You need a minimum of $6000 to open the account but then it is free if you maintain this balance. The money is completely and totally offshore.
 
Gaz{M} said:
Standard Bank offer a full overseas bank account via Standard Bank Isle of Mann. You need a minimum of $6000 to open the account but then it is free if you maintain this balance. The money is completely and totally offshore.
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$6k is a moerse lot of money :D

I have a Standard Bank Webtrader account which requires a $1 000 deposit to activate it. I've completed the application process and everything was approved already.

All I'm looking for now is R11 746 to activate it. The money is held offshore in New York
 
YingYang said:
$6k is a moerse lot of money :D

I have a Standard Bank Webtrader account which requires a $1 000 deposit to activate it. I've completed the application process and everything was approved already.

All I'm looking for now is R11 746 to activate it. The money is held offshore in New York
Click to expand...

This sounds like a good plan. Then at least you can do offshore equities as well.

I thought it was a $10 000 opening account required.

Good news to me if its only $1000
 
adidas said:
This sounds like a good plan. Then at least you can do offshore equities as well.

I thought it was a $10 000 opening account required.

Good news to me if its only $1000
Click to expand...

Just a word of caution. I also have a Std Bank webtrader account. If you buy shares on a European exchange you are subject to a 1% conversion fee from USD to EUR when buying the shares. I now have shares on the XETRA (Germany Bourse) and when I receive dividends in January, I will be subject to a conversion rate of 1% on those dividends back to my account (EUR -> USD). I blame it on my own lack of knowledge. I only realized this when I saw the massive loss I am making. NOT on the share price (Overall Gain) but on the USD strength against the EUR (leads to a large overall loss > 10%)

Std Bank are however going to launch a EUR based account in Q1 of 2015. I wish I knew this beforehand otherwise I would have just bought US based shares. Also note that the tax rate in US is 30% but we have a double tax treaty which allows you to claim back the 15% that you paid. Std Bank have contracted Globetax.com to handle the tax relief. It costs $35 for 3 years (ie $11.67 per year). I am planning on buying Dividend Based ETF's based in the US and hopefully I will cover the costs using that, ie slightly lower dividend yield...

Have a good one
LD
 
Lukcydog said:
Just a word of caution. I also have a Std Bank webtrader account. If you buy shares on a European exchange you are subject to a 1% conversion fee from USD to EUR when buying the shares. I now have shares on the XETRA (Germany Bourse) and when I receive dividends in January, I will be subject to a conversion rate of 1% on those dividends back to my account (EUR -> USD). I blame it on my own lack of knowledge. I only realized this when I saw the massive loss I am making. NOT on the share price (Overall Gain) but on the USD strength against the EUR (leads to a large overall loss > 10%)

Std Bank are however going to launch a EUR based account in Q1 of 2015. I wish I knew this beforehand otherwise I would have just bought US based shares. Also note that the tax rate in US is 30% but we have a double tax treaty which allows you to claim back the 15% that you paid. Std Bank have contracted Globetax.com to handle the tax relief. It costs $35 for 3 years (ie $11.67 per year). I am planning on buying Dividend Based ETF's based in the US and hopefully I will cover the costs using that, ie slightly lower dividend yield...

Have a good one
LD
Click to expand...

Thanks for the tip. Will def keep that in mind. I was looking at buying something like the vanguard equally weighted S&P500 ETF. There was also a nice article on moneyweb last week with Simon Brown discussing divident ETFs.
 
YingYang said:
Thanks, I'll keep this in mind if I have enough money to need to hide it from SARS :)
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Does this mean that SARS can't touch the money in, for example, a Seychelles incorporated company? I thought South Africans were taxed on worldwide income?
 
CH2013 said:
Does this mean that SARS can't touch the money in, for example, a Seychelles incorporated company? I thought South Africans were taxed on worldwide income?
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SARS would not know about that money.

The onus is on you to declare it :)
 
Just a small update for those interested.

Subsequent to this thread I opened a Neteller account, with the Euro as base currency. Every month I move a couple of hundred Euros into it.

You also have the option of requesting a Neteller card which is underwritten by MasterCard so you can use it wherever MasterCard is accepted. It offers free POS purcheses, but ATM withdrawals are €3 and that's enough of a deterrent not to withdraw cash with it. That being said, I haven't ordered a card yet.
 
YingYang said:
Just a small update for those interested.

Subsequent to this thread I opened a Neteller account, with the Euro as base currency. Every month I move a couple of hundred Euros into it.

You also have the option of requesting a Neteller card which is underwritten by MasterCard so you can use it wherever MasterCard is accepted. It offers free POS purcheses, but ATM withdrawals are €3 and that's enough of a deterrent not to withdraw cash with it. That being said, I haven't ordered a card yet.
Click to expand...


link to the faq?

Is the money then "physically" saved overseas, so that when the revolution begins and I flee with a suitcase , apon arriving in blighty I should just be able to withdraw at a local ATM? :confused:
 
Mortymoose said:
link to the faq?

Is the money then "physically" saved overseas, so that when the revolution begins and I flee with a suitcase , apon arriving in blighty I should just be able to withdraw at a local ATM? :confused:
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We live in the age of digital money, Moose :D

To answer your question, yes and no. When you transfer money they use the current exchange rate and charge your card accordingly.

Your money is then moved to a trust account segregated from their running capital - UK law requires that all clients' money has to be kept in a trust account; Neteller needs to maintain a balance in this account equal to or greater than ALL clients' combined funds.

When you land on the other side, you can physically withdraw the money or use your Neteller card to swipe for purchases.

Not entirely sure what in the FAQ your looking for, but here's a link https://help.neteller.com/
 
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