Alec Hogg: Revolutionary change on SA retirement funding will slow financial emigration

SA's worst financial legacy of apartheid is exchange control, draconian rules which block citizens from invest their savings wherever they like. Although the ANC government has progressively relaxed regulations, excon still forces SA citizens to keep their money in the country. Most notably, they force 70% of savings for retirement to be invested domestically – which in recent times has become a needless additional tax..Also read: Alec Hogg: Following Warren Buffett's credo on reputation does Lebashe proud.For some years now local investment returns have badly lagged those available in the other 99% of the investible universe. This has made financial emigration an increasingly popular option among rational beings. The result: bleeding an already stressed tax base in a country where social grant recipients outnumber income tax payers six to one..At last, SA's government has started to apply a tourniquet to slow and hopefully reverse this haemorrhaging of productive citizens. A revolutionary change to retirement related excon regulations was quietly mentioned in last month's mini Budget. Rand-denominated ETFs with purely offshore investments have been reclassified as 'domestic' rather than 'foreign'. That change means South Africans can effectively invest their entire retirement portfolio in foreign assets..___STEADY_PAYWALL___.Also read: Alec Hogg: How we hit Cloudflare home run.In a fascinating interview yesterday, financial services heavyweights Magda Wierzycka (above) and Magnus Heystek unpacked the details. In effect, the 30% offshore cap has been removed, terminating a sizeable penalty and removing one of the biggest drivers of financial emigration. A seemingly small change but one with major positive repercussions for a country that needs every (financial) contributor it can get..For your attention today….WEBINAR ALERT….* The dramatic changes opening up the world for your retirement funds (see above) are in focus in Jackie Cameron's Finance Friday. Join her at noon on Friday with expert guests including Magnus Heystek. Register here: https://register.gotowebinar.com/register/6646694434270030861.FOR DOWNLOADING….* We received plenty of focused questions in yesterday's webinar with Valenture's Robert Paddock and Sarah Elphick – so if you're considering affording your children a globally-recognised high school education from right here in Sunny SA, take time to watch the recording: https://www.youtube.com/watch?v=k9BxHxF3cN0.* Another great investment of your time is watching the recording of Monday's high quality Rational Radio webinar where Anchor Capital founder Peter Armitage shared reasons behind his company's proposed delisting; Forensics for Justice founder Paul O'Sullivan provided perspective – and advice – on ANC SG Ace Magashule's arrest; and the now-global PANDA's Nick Hudson lashed out against Covid-19 disinformation: https://www.youtube.com/watch?v=9Lt932xePRo.DOWNLOAD THE FREE BIZNEWS.COM APPClick on the links below to download your own Biznews.com App:.Apple: https://apps.apple.com/za/app/biznews-com/id1517392839.Android: https://play.google.com/store/apps/details?id=com.goodbarber.biznews&hl=en

Alec Hogg: Revolutionary change on SA retirement funding will slow financial emigration

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