Are two RAs better than one?

fire2029 said:
Do you know historically how often this generally happens & how much?
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Last time was approx 2014, when it moved from 315k - 500k.
So yes, given, it does not move frequently.
But it may happen 2 or 3 times during your retirement, and at these points you can access the remaining benefit, add that to your discretionary funds and add the rest to your LA, if you are armed with RA's that has been not been retired from yet.
 
BuckRogers said:
Last time was approx 2014, when it moved from 315k - 500k.
So yes, given, it does not move frequently.
But it may happen 2 or 3 times during your retirement, and at these points you can access the remaining benefit, add that to your discretionary funds and add the rest to your LA, if you are armed with RA's that has been not been retired from yet.
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This is a great point I had not considered. Assuming you had converted your one RA into one LA, would a person still be able to benefit from the increased tax lump sum? Or is that option only available upon conversion of RA to LA?
 
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fire2029 said:
This is a great point I had not considered. Assuming you had converted your one RA into one LA, would a person still be able to benefit from the increased tax lump sum? Or is that option only available upon conversion of RA to LA?
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The option is available upon annuitization only, hence my comment that 2 or 3 smaller RA's gives more options that one big one, given your personal tax circumstances off course.
Edit - legislation does not force you to annuitize them concurrently, so you can stagger as you see fit.
 
Depending on where you stand - no RAs are better than either.

With the upcoming changes to emigration, you may want to consider withdrawing your RAs before 2022 if emigration is in your plans...
 
Mike Hoxbig said:
Depending on where you stand - no RAs are better than either.

With the upcoming changes to emigration, you may want to consider withdrawing your RAs before 2022 if emigration is in your plans...
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When deciding to emigrate, your million euro package will trump any decision that involves a few ZAR in South Africa.
 
backstreetboy said:
Just paying 1% more in fees is pretty significant...

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Yes but if you have one RA with a 0.4% fee, and another with a 0.5% fee, you are not paying 0.9%, you are paying whatever the weighted average is between 0.5 and 0.4.
 
icarusza said:
“Why would you put your money into an RA…”
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Were talking about having more than one RA. Not about having any RA's, so we're talking about investment above your initial RA. You up to speed?
 
Mars said:
Were talking about having more than one RA. Not about having any RA's, so we're talking about investment above your initial RA. You up to speed?
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No, I think you're making that assumption. The original question doesn't specify. I think the vast majority are not able to contribute 27.5% of their income to an RA, and rather have an existing RA with a lower contribution that they're not happy with.
 
I’d say it’s useful to have one active and one passively managed fund. Yes the passive will attract a lower fee and most well managed actively managed funds trend above the passive returns on avg, but they do with slightly higher or obscene fees(in the case of life assurer products, obviously you never take these).

Also people need to realize that passive funds win given certain market dynamics and time, active given other scenarios.. on avg the market/passive wins yes.. but this is not likely to remain so permanently and is highly dependent on when you enter the market vs exit the market. So your mileage will vary.. saying passive for the win only.. yah that’s a over simplification.

That being said I’d you should have the two flavors of RA for tax efficiency or business requirement/benefits(Many companies force ra/provident or incentivize having it so not taking it makes no sense) and also have more discretionary savings in tfsa, efts etc such that ideally you want to live off those for as long as possible (or other way round if externalized and you think currency on the decline) prior to using LA converted RA funds as every few years equates to a massive increase given huge capital pool and right investments.
 
backstreetboy said:
No. You'll just pay more fees and have to muck about consolidating them in the end.
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Seriously as I want to know if I made correct choice. Would you consider 10x & Sygnia RA's as "more fees" companies ? Or are their performances not good enough? I have split RA between these 2 for "diversification". I also closed AG and moved funds to 10x recently and there was no "muck" - smooth process.
 
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surface said:
Seriously as I want to know if I made correct choice. Would you consider 10x & Sygnia RA's as "more fees" companies ? Or are there performances not good enough? I have split RA between these 2 for "diversification". I also closed AG and moved funds to 10x recently and there was no "muck" - smooth process.
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backstreetboy either does not know what he is talking about or did not think through his comment, it is safe to ignore what he said.
 
surface said:
Seriously as I want to know if I made correct choice. Would you consider 10x & Sygnia RA's as "more fees" companies ? Or are there performances not good enough? I have split RA between these 2 for "diversification". I also closed AG and moved funds to 10x recently and there was no "muck" - smooth process.
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No. They're new style RA's.
 
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