Educational Policy

I.am.Sam

I.am.Sam

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hello all
we looking to increase our policy and get a better payout

is our current one worth it or is there something else we should look at

1706257877329.png
 
Sorry not sure I'm reading this thing correctly.
Your total payments have been exactly R40 000, and the current value is R39 859?

*Edit - see this was asked above.
 
I.am.Sam said:
yes :( by the looks of it

i even ionvested a 10k once off, its now worth less
Click to expand...
So I get the idea of having something separate to save for your child's future education, something that you in theory can't touch and will be ready when you need it. So I know folk say put it all in your bond, I get that, personally I like having a few separate savings/ investment vehicles.
But long story short, if possible, I'd honestly take the hit and cash out, set up my preferred investment house automated debit order (can be your bank, Allan Gray, Easy Equities, go money market if you want, whatever), and just keep track from there. Then you can easily, add, increase, decrease, stop completely.

The good thing is, you've now got R40k (R38k after they hit you with termination values) to get started with. I mean that's good. But my 2c, stay away from these contracts that lock you in for so long; might be closing the barn door after the horse has bolted but if you can get out, get out. If you can;t, can you reduce the amount you put in?
If you do want to protect the money from yourself I'd then look at like an RSA retail bond or something like that.
 
I.am.Sam said:
so what would be an ideal investment group

cause yeah i want something that maybe in 15 years pays out something good
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You ask 10 folk you'll get 10 different answers.
Me?
I'd look for something flexible, can start, stop when I want, has an online portal I can manage debit orders from, see growth, offers international exposure, lowish fees. Sygnia, 10X, one of those guys maybe as a starting point.
Pick one aggressive, one more balanced option, split your cash between them in whatever ratio you want, see how it goes, adjust accordingly.
Seeing as the intention for the money is to help pay for studies later on I don't reckon you need it to be in their name cos the money is for you. But if you decide you actually just want to give them the cash it might be worth considering having the investment in their name.
 
I.am.Sam said:
hello all
we looking to increase our policy and get a better payout

is our current one worth it or is there something else we should look at

View attachment 1652119
Click to expand...
So you have contributed 40 000 in payments and yet your fund value is only worth 39859, with them only paying out 37987 if you terminate it

So basically in 8 years you actually made a loss and no interest? Even some banks give 10% interest, this is better than this.

Try chatting to someone at Allan Gray. Your investment is actually loosing you money.

I put my kids money in a tax free savings at the bank, interest is a bit less than ideal, but I can access it anytime.
 
Jan van Riebeeckstad said:
Why not a tax free investment account in their name? Or normal investment account.

Surprisingly my tax free investment account is more stable with good growth over my share account.
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if they want to then start a tax free account later on in their life they would have lost the ability to invest the full amount...

once you put in money..that portion is lost...cant re-invest it again...
 
Nedbank. Maybe 12 months at a time, but I would lean towards Tax Free Savings instead.

Fixed Deposit account interest rates and fees | Nedbank

Enjoy capital growth at a fixed interest rate when you open a fixed-deposit investment account. Learn more here.
personal.nedbank.co.za personal.nedbank.co.za

Tax free savings with some banks are less risky, but carries lower interest rates than at an investment company

Get a Tax-Free Fixed Deposit account | Nedbank

Save the smart way with a Tax-free fixed deposit account. See what documents you’ll need to get started.
personal.nedbank.co.za personal.nedbank.co.za
 
akescpt said:
if they want to then start a tax free account later on in their life they would have lost the ability to invest the full amount...

once you put in money..that portion is lost...cant re-invest it again...
Click to expand...

The little shxts will survive, just like we did. In their future maybe limits will increase.
 
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Sepeng said:
You ask 10 folk you'll get 10 different answers.
Me?
I'd look for something flexible, can start, stop when I want, has an online portal I can manage debit orders from, see growth, offers international exposure, lowish fees. Sygnia, 10X, one of those guys maybe as a starting point.
Pick one aggressive, one more balanced option, split your cash between them in whatever ratio you want, see how it goes, adjust accordingly.
Seeing as the intention for the money is to help pay for studies later on I don't reckon you need it to be in their name cos the money is for you. But if you decide you actually just want to give them the cash it might be worth considering having the investment in their name.
Click to expand...

yeah ideally the money isnt for them

in the case they dont end up studying and what what then we can always see
but for now its just something we need to help us one day
 
I.am.Sam said:
yeah ideally the money isnt for them

in the case they dont end up studying and what what then we can always see
but for now its just something we need to help us one day
Click to expand...
its interesting how this thing isn't growing. did you choose the investment vehicle/fund? how does that loyalty portion work?

getting a share account and klapping your money in and taking the risk might be more profitable but that would be at your own risk...

and at least you doing this...nice to have options...
 
I.am.Sam said:
hello all
we looking to increase our policy and get a better payout

is our current one worth it or is there something else we should look at

View attachment 1652119
Click to expand...
Yoh, this is terrible. Sorry.

I have a recurring contribution in coronation TFSA (Resources Fund - P).

Shows me below when I logged on just now. I would do something similar if I were you - after checking out different funds.

1706615177992.png
 
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