Evil landlord & RAs...

[Cius]

Just to put the nail in the coffin of the old style RA's, I calculated that putting my money in fixed deposits would have made me a better return than my RA did.

If you are paying an advisor fee, you should stop, or get out immediately. Those ongoing advisor fees make zero sense. It's like going to a doctor for one consultation and then paying an ongoing fee to that doctor for the rest of your life. It's crazy.

Lastly the ongoing advisor fee in exchange of the tax benefit sales pitch. Financial advisors will say sign up via me, and you get this amazing big tax deduction. Depending on what you are earning it can range from 30 to 41%. That is just crazy right! Huge compared to my 1 or 2% fee. What they don't say is the longer that RA runs the more the maths shifts. Thing is the tax benefit is on your contribution. The 1 or 2% is off your total portfolio. So first year it looks good. By the time your portfolio is a bigger the tax benefit is still just on the contribution, however their fee just keeps going up. Also, that fee is not required to even get you the tax saving, so shove it.

 

[Pegging]

Just to put the nail in the coffin of the old style RA's, I calculated that putting my money in fixed deposits would have made me a better return than my RA did.

If you are paying an advisor fee, you should stop, or get out immediately. Those ongoing advisor fees make zero sense. It's like going to a doctor for one consultation and then paying an ongoing fee to that doctor for the rest of your life. It's crazy.

Lastly the ongoing advisor fee in exchange of the tax benefit sales pitch. Financial advisors will say sign up via me, and you get this amazing big tax deduction. Depending on what you are earning it can range from 30 to 41%. That is just crazy right! Huge compared to my 1 or 2% fee. What they don't say is the longer that RA runs the more the maths shifts. Thing is the tax benefit is on your contribution. The 1 or 2% is off your total portfolio. So first year it looks good. By the time your portfolio is a bigger the tax benefit is still just on the contribution, however their fee just keeps going up. Also, that fee is not required to even get you the tax saving, so shove it.

There are some uses for Financial advisers, but if you know for instance how an RA or TFSA works then you really don’t need to pay them a fee for that. You can do it yourself.

 

[zerocool2009]

There are some uses for Financial advisers, but if you know for instance how an RA or TFSA works then you really don’t need to pay them a fee for that. You can do it yourself.

And you can simulate a zero cost RA as well!

Add some interest bearing funds in, which off sets the monthly cost!

Diy is the way to go! And sad but true, you dont need a FA.

 

[fire2029]

And you can simulate a zero cost RA as well!

Add some interest bearing funds in, which off sets the monthly cost!

Diy is the way to go! And sad but true, you dont need a FA.

Zero cost RA with interest bearing funds? I don't follow

 

[Bernoldus Niemand]

Zerocool talking out of his arse. Just ignore him.

 

[Pegging]

And you can simulate a zero cost RA as well!

Add some interest bearing funds in, which off sets the monthly cost!

Diy is the way to go! And sad but true, you dont need a FA.

You're going to simulate something that does not exist?

Not sure what you are talking about. Do you have an example?

Also an example of a zero cost RA.

 

[zerocool2009]

You're going to simulate something that does not exist?

Not sure what you are talking about. Do you have an example?

Also an example of a zero cost RA.

Will take a screenshot on the morning!

It doesnt exist nogals! Lol

You understand you can select funds customized right?

So lets say you add a money market fund into your RA, and lets say your fees are R200 a month, but getting R200+ in interest…

Been doing this with preservation funds, RA's, (paid up and active).

Use it, or dont use it, been a wonderful trick for me personally!

 

[Speedster]

Will take a screenshot on the morning!

It doesnt exist nogals! Lol

You understand you can select funds customized right?

So lets say you add a money market fund into your RA, and lets say your fees are R200 a month, but getting R200+ in interest…

Been doing this with preservation funds, RA's, (paid up and active).

Use it, or dont use it, been a wonderful trick for me personally!

You're still paying the fee. And you're paying more than the fee because you're giving up a higher return investment for an interest bearing one.

 

[zerocool2009]

You're still paying the fee. And you're paying more than the fee because you're giving up a higher return investment for an interest bearing one.

Paid up RA (not huge) sample just for illustration. The red X marks the money market leg.

 

[fire2029]

Will take a screenshot on the morning!

It doesnt exist nogals! Lol

You understand you can select funds customized right?

So lets say you add a money market fund into your RA, and lets say your fees are R200 a month, but getting R200+ in interest…

Been doing this with preservation funds, RA's, (paid up and active).

Use it, or dont use it, been a wonderful trick for me personally!

New product idea !

-8% fee RA! Yes a negative fee RA. Just go 100% interest bearing.

Who's in?