What Is Procrastination Costing Your Wealth?
Every year you delay investing, you lose not just the money you could have contributed—but also the compounding returns that money could have earned. Below is a powerful illustration of how waiting just a few years can dramatically impact your long-term wealth.
The Cost of Waiting to Diversify Offshore
Delaying offshore diversification doesn’t just reduce returns-it also exposes wealth to currency risk. The earlier you diversify offshore, the better protected your wealth is.
Assumptions:
- Offshore investments grow at 8% per year
- The local currency depreciates by 5% per year
- Initial investment: R1,000,000
Key Takeaway::
If you wait 5 years to invest offshore, you could lose 12% of your wealth due to missed growth and currency depreciation.
If you wait 10 years, you could lose 23%.
Tax-Efficient Investing: How Offshore Accounts Reduce Tax Burdens
Investing offshore can reduce tax liabilities and improve long-term wealth growth.
Assumptions:
- Local investment subject to capital gains tax (18%)
- Offshore investment benefits from tax-efficient structures
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