Coronation RA

[Sicilian-Najdorf]

Hi All
Anyone have some advice on going with Coronation for an RA?
Any exorbitant fees I should be aware of?
My timeline for investment is 20 years.

I am currently being hounded by Liberty to take out an RA with them. Something to do with Echo Bonus.


Thanks

 

[supersunbird]

Hi All
Anyone have some advice on going with Coronation for an RA?
Any exorbitant fees I should be aware of?
My timeline for investment is 20 years.

I am currently being hounded by Liberty to take out an RA with them. Something to do with Echo Bonus.


Thanks

Good on you for not falling for their sales talk, Liberty RAs are expensive and any bonus is just getting back a small part of those high fees, so it's self funded anyway.

I've got an RA (static now, no monthly contributions currently) with Coronation. No exorbitant or even any other fees really, except the unit trusts own internal fees as shown on the fact sheet.

 

[Sicilian-Najdorf]

Good on you for not falling for their sales talk, Liberty RAs are expensive and any bonus is just getting back a small part of those high fees, so it's self funded anyway.

I've got an RA (static now, no monthly contributions currently) with Coronation. No exorbitant or even any other fees really, except the unit trusts own internal fees as shown on the fact sheet.

Thanks
So it's basically just the underlying unit trust fee that you pay?
I believe it's 1.5% for the Balanced Plus

There is no "effective annual cost"?

 

[supersunbird]

Thanks
So it's basically just the underlying unit trust fee that you pay?
I believe it's 1.5% for the Balanced Plus

There is no "effective annual cost"?

1.25% excl VAT, so 1.43% in reality.

Indeed, no EAC, if you are not using an advisor that gets paid a fee, and there is no LISP fee or anything like that.

 

[Sicilian-Najdorf]

Good on you for not falling for their sales talk, Liberty RAs are expensive and any bonus is just getting back a small part of those high fees, so it's self funded anyway.

I've got an RA (static now, no monthly contributions currently) with Coronation. No exorbitant or even any other fees really, except the unit trusts own internal fees as shown on the fact sheet.

Any other companies I should stay away from?
Old Mutual?

 

[backstreetboy]

Hi All
Anyone have some advice on going with Coronation for an RA?
Any exorbitant fees I should be aware of?
My timeline for investment is 20 years.

I am currently being hounded by Liberty to take out an RA with them. Something to do with Echo Bonus.


Thanks

That's Sanlam AFAIK.

Any other companies I should stay away from?
Old Mutual?

Any life insurance based provider like Liberty, Old mutual, Discovery, Sanlam etc.

 

[Sicilian-Najdorf]

That's Sanlam AFAIK.


Any life insurance based provider like Liberty, Old mutual, Discovery, Sanlam etc.

Sorry, yes - Sanlam

 

[Sicilian-Najdorf]

That's Sanlam AFAIK.


Any life insurance based provider like Liberty, Old mutual, Discovery, Sanlam etc.

Excuse my ignorance on this topic but why specifically not life insurance based providers?
I've read this advice quite often.
Is this because of fees or poor performance?

 

[WAslayer]

Good on you for not falling for their sales talk, Liberty RAs are expensive and any bonus is just getting back a small part of those high fees, so it's self funded anyway.

I've got an RA (static now, no monthly contributions currently) with Coronation. No exorbitant or even any other fees really, except the unit trusts own internal fees as shown on the fact sheet.

What's the growth like..? I have a static RA with AG and the growth is virtually nothing after fees and been static for close on 5 years..

Contemplating moving this RA to either coronation or 10x.. just not sure whether the cost to move would be worth it, vs starting contributions on the AG RA again, which should hopefully help off set the fees and see it growing again somewhat..

 

[supersunbird]

Any other companies I should stay away from?
Old Mutual?

As backstreetboy said, any of the life insurers. The fees are high on the RAs, because they have to pay a whole sales and marketing team and whatever else, while the other guys get the income from their funds and maybe LISP fees (Allan Gray for example) because you can access other providers funds too on their platform and don't have a whole team of advisors and marketers to pay.

Lets take https://www.sanlam.co.za/personal/r.../sanlam-cumulus-echo-retirement-annuity.aspx# paying 2.5% more than Coronation for what extra? I don't even want to know what other fees they add and what the EAC would be.

That's just managed providers, you get index fund providers like Sygnia and 10X which have even lower fees.

 

[backstreetboy]

Excuse my ignorance on this topic but why specifically not life insurance based providers?
I've read this advice quite often.
Is this because of fees or poor performance?

Both. Sygnia's low cost passive fund outperformed all of them. My EAC with Sygnia is like 0.51%. Why pay triple or more that in fees and get subpar performance?

 

[supersunbird]

What's the growth like..? I have a static RA with AG and the growth is virtually nothing after fees and been static for close on 5 years..

Contemplating moving this RA to either coronation or 10x.. just not sure whether the cost to move would be worth it, vs starting contributions on the AG RA again, which should hopefully help off set the fees and see it growing again somewhat..

I took my value at 1 Jan 2020 and compared it to 28 June 2021, and the growth was 10.3%.

 

[zerocool2009]

That's Sanlam AFAIK.


Any life insurance based provider like Liberty, Old mutual, Discovery, Sanlam etc.

Add momentum to the list (dont go direct).

Via a group (as in firm, much lower rates)

 

[surface]

What's the growth like..? I have a static RA with AG and the growth is virtually nothing after fees and been static for close on 5 years..

Contemplating moving this RA to either coronation or 10x.. just not sure whether the cost to move would be worth it, vs starting contributions on the AG RA again, which should hopefully help off set the fees and see it growing again somewhat..

I am in process of moving from AG to 10x. Just consolidating & fees a bit less for 10x. I am told there are no fees involved in the transfer. Both AG & 10x are super responsive so transfer is progressing way faster than they they have said so far.

p.s. Coronation is super responsive as well. In all providers I dealt with Sygnia is the slowest to resolve any issues.

 

[surface]

Yoh, this must be unusual for Coronation

https://twitter.com/i/web/status/1438733210125578242