EAC numbers from RA revealed.

beefymoocow said:
My fees are about 0.4% per annum and will get cheaper every year since my contributions are CPI + x. That’s pretty cheap since most of the portfolio is actively managed. Yes true you won’t get your bonus if you lapse your policy and that what I mean by cross subsidy model. They are people who will not be able to meet their commitments. But if you are able to commit. Discovery is penalizing those people and sharing the profit with you.

I guess having a finance background or a very good financial advisor can mitigate that risk. Before I even signed up. I did a sensitivity analysis if I stay on diamond or blue and forecasted my contributions till retirement. I know I’m gonna struggle in my penultimate years before retirement. That’s why I started fairly low and started investing in other assets to be able to meet my commitments in the years to come. I think I’m my last years of retirement will have to put away about 60k a month.
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I wish you well. I have an EAC of 0.5%. No future struggles, no compulsory contributions, no penalties, no potential 60k/month premiums, no strings attached. Sure I don't have active management but that's a pro to me. The evidence against it is overwhelming, and I'm not only talking about international evidence. I'm glad you've found a product you love, I sincerely hope life doesn't life in the decades to come. Sincerely.
 
beefymoocow said:
I know I’m gonna struggle in my penultimate years before retirement. That’s why I started fairly low and started investing in other assets to be able to meet my commitments in the years to come. I think I’m my last years of retirement will have to put away about 60k a month.
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So what happens if you breach the 27.5% or R350k per year limit on retirement savings? Not saying that will happen to you specifically, but it seems like some people will have to exceed the caps.
 
3WA said:
So what happens if you breach the 27.5% or R350k per year limit on retirement savings? Not saying that will happen to you specifically, but it seems like some people will have to exceed the caps.
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You increase your income by adding rental income and interest income etc. The 27.5% is based on taxable income and not just your salary.

If your discovery contribution is 27.5% of your income. You probably in big trouble. It’s quite unlikely you will be able commit to their monthly contributions since their contributions increase annually around CPI + 3 percent. Unless your salary will increase at a way higher amount to cater for your other living expenses
 
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3WA said:
So what happens if you breach the 27.5% or R350k per year limit on retirement savings? Not saying that will happen to you specifically, but it seems like some people will have to exceed the caps.
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As far as I know that limit is just on how much is tax exempt. You can put in as much as you like, you just get taxed on any portion that is over the limit.

That said, it's not recommended to go over the limit because there are usually better investment options than retirement funding and retirement funding needs the tax benefit to be competitive.
 
I asked Stanlib now whats the total EAC of my preservation fund. They said its quoted at 0.54% (my initial application), but there are non visible costs also. Is it time to move ?
 
zerocool2009 said:
Another Discovery RA. I assume the huge EAC (year 1 is broker costs up front)
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Yea correct. It’s the cost you have to pay if you withdraw in the first year. It depends on the retirement product. If it’s a discovery DRO your EAC can be very low. But a plain vanilla lump sum discovery retirement contribution might be quite costly.

And discovery can’t really calculate their EAC properly because it has many variables. My EAC always changes as times passes but fortunately it goes down only.
 
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In 2018 when I posted my eac it was -1.4%.

Now it’s -1.66%. They kinda changed the disclosure alittle.

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supersunbird said:
For your sake I hope you can keep it up for 25 years, or else it will be expensive.
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Yea I’m building up a retirement fund so if I lose my job or unable to to work. I would be able to meet my retirement contributions. But still need a bit to go.
 
I see Sygnia is changing the game totally ! :) Lets hope the exchange control say its "ok" what they are tempting !!

This is revolutionary !
 
zerocool2009 said:
I see Sygnia is changing the game totally ! :) Lets hope the exchange control say its "ok" what they are tempting !!

This is revolutionary !
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Yeah. Let's hope FSCA is gonna give final ok. Sygnia pushing ahead as if they already have the ok.
 
fire2029 said:
Yeah. Let's hope FSCA is gonna give final ok. Sygnia pushing ahead as if they already have the ok.
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My one friend just switched funds! 2 days admin... then done! You cant lose....

Ohhh.... lets see! Getting my section14 papers ready
 
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