Advice needed - Portfolio

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Radioboy

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Hi there everyone.

I need some advice regarding my portfolio.

My portfolio at the moment looks something like this:

RA - Liberty - R800 p/m
My parents started this for me when i went to University in 2006 , and I continued paying into it since I started working. I hate everything about RA's , but the performance has been good and I will never have the heart to cancel it.

FundsAtWork Umbrella Pension Fund - Momentum - R1000 p/m
Been contributing since Nov 2010.

Unit trusts - StanLib - R1000 p/m
R500 p/m into Property Income Fund & Balanced Fund

Unit Trusts - Coronation - R500 p/m
Top 20 Fund

Im 26, have no debt other than my car and can spare about R1000 every month. I do have a 'when-cr@p-hits-the-fan-fund' with about 4 month's worth of salary, when, you know, the cr@p hits the fan.
Medium to long term would be ideal. I think ...

Any ideas? Im torn between paying more into the above and starting another investment.

Your help would be appreciated.
 
You could further diversify into offshore investments or put the extra money into paying off the car faster. Do you own your own property? If not once the car is done you could look into that, or start saving for the next car.

Overall seems you are doing great and you just need to remember the basic principle about good investment decision making: it is very simple and super boring. Plans are long term but your brain want activity/excitement in the short term. Just stick to the plan and forget about it.
 
If you don't have property and are renting, buy something small. You always need somewhere to stay and if you can get into the market when you are young, it is easier in the long run.
 
Rule of thumb is make sure you are investing at least 15% of your gross salary. 20% is better. So if you are short adjust accordingly trying to take advantage of tax incentives etc. Personally I am guessing you have plenty there and won't get anymore tax incentive by upping the RA or pension contributions so in that case invest into ETF's yourself as that money is easier to get out of the country should things hit the fan. The issue I have with pension funds and RA's is that they are very dependent on country risk. I know a few Zimbabweans who diligently paid their pensions and RA's for decades and where left with nothing after the hyperinflation. Hence I always think its wise to control a portion of your money yourself in case you need to get out of dodge.
 
Thanks for the advice guys.

The fact that RSA is going downhill slowly but surely (IMO) is the main reason why I'm not looking at property at the moment.

I will do some more research regarding ETF's and try to hit that 20% savings goal.

Thanks again , Its awesome to finally be part of MBB after years of stalking y'all.
 
Radioboy said:
Hi there everyone.

I need some advice regarding my portfolio.

My portfolio at the moment looks something like this:

RA - Liberty - R800 p/m
My parents started this for me when i went to University in 2006 , and I continued paying into it since I started working. I hate everything about RA's , but the performance has been good and I will never have the heart to cancel it.

FundsAtWork Umbrella Pension Fund - Momentum - R1000 p/m
Been contributing since Nov 2010.

Unit trusts - StanLib - R1000 p/m
R500 p/m into Property Income Fund & Balanced Fund

Unit Trusts - Coronation - R500 p/m
Top 20 Fund

Im 26, have no debt other than my car and can spare about R1000 every month. I do have a 'when-cr@p-hits-the-fan-fund' with about 4 month's worth of salary, when, you know, the cr@p hits the fan.
Medium to long term would be ideal. I think ...

Any ideas? Im torn between paying more into the above and starting another investment.

Your help would be appreciated.
Click to expand...

Making me jealous! lol

The only thing thing I can see you lacking in is international exposure, and since you already have Coronation...

What I'd do with the R1000 in your situation:
R500 into Coronation Emerging Markets and and R500 into Coronation Global Managed (covers more developed markets).

Then with the next time R250pm is available I would increase the Top 20 fund to R750pm. And then any extra amount would above that would go into the car.

Is your Liberty RA unit trust based and not a contract life based one?
 
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supersunbird said:
Making me jealous! lol

The only thing thing I can see you lacking in is international exposure, and since you already have Coronation...

What I'd do with the R1000 in your situation:
R500 into Coronation Emerging Markets and and R500 into Coronation Global Managed (covers more developed markets).

Then with the next time R250pm is available I would increase the Top 20 fund to R750pm. And then any extra amount would above that would go into the car.

Is your Liberty RA unit trust based and not a contract life based one?
Click to expand...

Thanks for your response :)

I will definitely be looking at the Coronation funds that you mentioned. Dealing with them has been great thus far and I can just sit back and see what happens. I'm too much of a wuss to buy/sell shares myself.

Regarding my RA, I'm not too sure. All I know it is a 'LA EXCEL LIFETIME PHASE5' ..... I don't like that word 'lifetime'. I don't know why anyone would sign a contract with that word in it.
 
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As far as i can see, the Global Emerging Market fund requires a minimum initial investment of $15000...

moving on swiftly
 
The lifetime fund is actually a bundle of funds - the client gets invested into the one that suits their investment time horizon. Since you are still young you are in the most aggressive option, as you get closer to retirement your portfolio will be automatically changed to become progressively more conservative. It seems like a great idea, but an adviser shouldn't rely on automatic portfolio changes to do his job for him.

P.S. Why do you hate everything about RA's?

Surely the tax advantages alone make them an amazing investment vehicle - as long as you can wait until 55 to get the money out.
 
vash87 said:
P.S. Why do you hate everything about RA's?
Click to expand...

Should have been more specific. This RA is not unit trust based, so if I can't pay it anymore for whatever reason or reduce the month contributions- I'm slapped with horrendous fines and what not.

Yes, the SARS refunds help. Just wish I can find a way not to spend it on cheap wine :love:
 
Oh yes I see that you started it in 2006 so it's an old generation RA. It really is a pity about those termination fees. RA's started since 2009 are a different story. The old generation has definitely left a sour taste though.
 
Hendrix said:
I prefer: http://www.moneyweb.co.za/moneyweb-click-a-unit-trust
It has a lot more funds
Click to expand...

The other link I posted above that one is the same data ;)

Radioboy said:
Should have been more specific. This RA is not unit trust based, so if I can't pay it anymore for whatever reason or reduce the month contributions- I'm slapped with horrendous fines and what not.

Yes, the SARS refunds help. Just wish I can find a way not to spend it on cheap wine :love:
Click to expand...

At least your RA isn't too costly monthly and if you say its performing decently I guess one has to live with it for now.
 
Instead of starting a new thread , i thought id bring this one back to life.

After Liberty decided to email my mother's ENTIRE portfolio to me (basically i know what I'm inheriting at the moment - naturally my mom is LIVID!) and taking double debit orders this month, I've decided to move all my funds from them. Moving the Unit Trusts were easy, however the RA is a bit more complicated.

I want to know whether i will still qualify for the SARS refund if i move to a Unit Trust based RA? Also, can i still withdraw from the RA if i become disabled or emigrate?

Im waiting in anticipation for Liberty to get back to me regarding the fees/fines etc ...
 
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Radioboy said:
Instead of starting a new thread , i thought id bring this one back to life.

After Liberty decided to email my mother's ENTIRE portfolio to me (basically i know what I'm inheriting at the moment - naturally my mom is LIVID!) and taking double debit orders this month, I've decided to move all my funds from them. Moving the Unit Trusts were easy, however the RA is a bit more complicated.

I want to know whether i will still qualify for the SARS refund if i move to a Unit Trust based RA? Also, can i still withdraw from the RA if i am either become disabled or emigrate?

Im waiting in anticipation for Liberty to get back to me regarding the fees/fines etc ...
Click to expand...

Ouch!

Yes to both, no differences, all RAs are treated the same by SARS and in regards to governments withdrawal regulations.
 
Last edited:
supersunbird said:
Ouch!

Yes to both, no differences, all RAs are treated the same by SARS and in regards to governments withdrawal regulations.
Click to expand...

One more question. Lets say my RA is spread out over three unit trusts , each with an annual fee of 1% , will my total fee per year be 3%?
 
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