South African farmers face a host of challenges, be it financial pressure, dramatic weather events or political instability.
Considering these challenges, how do they protect their legacy to ensure that their lands are sound, that they have sufficient cover in trying times to build wealth and nurture the future for themselves and for their children? Despite looking at new ways to sustain crops and livestock, and adopting traditional means of building wealth – ‘money-under-the-mattress’, pension funds, insurance or just getting by on a day-to-day basis and hoping for the best – it is simply not enough.
Brandon Ruddle, financial associate at Northern Cross Wealth Management says that farmers have to be thinking ahead, be pro-active and consider taking more risks to protect what is theirs for future generations. “By diversifying one’s portfolio and looking offshore, investors are able to build a safety net with nominal risk. A portfolio can be diversified across different currencies, invested into different countries/continents or invested into different sectors such as technology, healthcare, energy, etc.”
He adds that South Africans wishing to invest abroad can do so with their Foreign Investment Allowance as prescribed by the South African Reserve Bank (SARB) which permits individuals to transfer up to R10 million out of South Africa annually. These funds can be invested into offshore investment portfolios, property, bank accounts or other investments.
Benjamin Graham, Warren Buffet’s mentor said, “Diversification is an established tenet of conservative investment” – casting that safety net and diversifying a portion of your assets off-shore in a more stable country with a more secure currency could be the solution to growing your wealth and creating longevity and security in this unpredictable industry. – Press release