Is it really worth having a pension/provident fund?

[CamiKaze]

On your phone call/mail, did you state you just want to know what the difference between the 2 products are? No mention of anything else?

Yes, I did exactly that.

 

[backstreetboy]

Anyone know the difference between the "Sygnia Skeleton 70 Fund UPF" and the Sygnia Skeleton Balanced 70 Fund?

Besides the fact that the TIC for the UPF fund is 0.71%, and the Balanced Fund is 0,49%, what would be the best option for a Preservation fund?

I think that the UPF is geared for a Preservation fund, but it has a higher expense than the balanced fund... So... is it a better product?

And when I phoned the bastards, all they told me is that they can't offer advice because it is against their policy.
They can't even offer advice on the product... why do they have a sales team then?

Well to be fair it's all on their website...

https://ra.sygnia.co.za/personal-investments/frequently-asked-questions

A unitised life fund is very similar to a unit trust, but it may only be used in certain products. It also allows investors to pool their assets into a single portfolio managed by a professional manager that provides daily unit prices. Most unitised life funds will comply with Regulation 28.

It is however important to note that unitised life funds are not suitable for investors who might need instant access to their savings. This is because to invest in one of these funds you have to invest in a Sygnia Life life policy, with a minimum term of five years and limited early withdrawals.

 

[Not_original]

If it wasn't for my provident fund I would likely die a poor man. I did however have two fiscal years of negative growth. But in the last 10 years I had an average return of 12% (although two mega growth years does skew the graph a bit) but anyways. 12 annualised in a tax relieved vehicle is a win in my books. So far I'm working 13 years for the company and if things Co tinue chugging along I will retire at 55 depending on inflation. If I draw the average growth forward and average inflation at 6%, I will have 9 mil in today's money at the point of leaving which I should then make last 30 odd years ( and there will more than likely be growth in that period too)

 

[supersunbird]

Well to be fair it's all on their website...

https://ra.sygnia.co.za/personal-investments/frequently-asked-questions

Thanks, I couldn't find it and I had read something similar years ago. I am still not sure of the supposed benefit of the more expensive one though.

 

[nazmo]

We have a mix of provident fund and one extra house we renting and at the same time moniting the value of (the area is appreciating nicely). in 10 years time would be nice to have a 3rd property. Property done right in the right areas can also be a nice nestegg. If you willing to deal with the admin.

 

[Not_original]

We have a mix of provident fund and one extra house we renting and at the same time moniting the value of (the area is appreciating nicely). in 10 years time would be nice to have a 3rd property. Property done right in the right areas can also be a nice nestegg. If you willing to deal with the admin.

Ja I also went that route. Renting out half of mine and then have another two which I'm renting and already green on thankfully

 

[nazmo]

Ja I also went that route. Renting out half of mine and then have another two which I'm renting and already green on thankfully

I acknowledge that im financially juvenile, I wouldnt know the first thing of investing and what to do. so its either a very safe fund with probably minimal growth, or property that appreciates. One thing I do know is that tax implications of selling etc must be considered. But will consult when the time comes.

 

[Not_original]

I acknowledge that im financially juvenile, I wouldnt know the first thing of investing and what to do. so its either a very safe fund with probably minimal growth, or property that appreciates. One thing I do know is that tax implications of selling etc must be considered. But will consult when the time comes.

Well, recessions, or rather financial chaos is something we haven't seen the end of, there will still be some wall street hickups in your finance future, so I would suggest you start setting aside some "gambling" money to take advantage of the panic of others. If you flunk it, it means you just have to wait out till it eventually recovers, if you coin it, you made a kakhuis full of extra cash.

 

[nazmo]

Well, recessions, or rather financial chaos is something we haven't seen the end of, there will still be some wall street hickups in your finance future, so I would suggest you start setting aside some "gambling" money to take advantage of the panic of others. If you flunk it, it means you just have to wait out till it eventually recovers, if you coin it, you made a kakhuis full of extra cash.

you absolutely right. yet im that guy that will say "wish i did that" but never will. just so far from my personality. ill watch other people coin it. but yes, should be done with "extra" money. not core money.

 

[Not_original]

you absolutely right. yet im that guy that will say "wish i did that" but never will. just so far from my personality. ill watch other people coin it. but yes, should be done with "extra" money. not core money.

Ja well, last year I took a fatch chance and sold of one of our cars and took any and all rainy day saving I had and put that up for investment. Best is, it wasn't even really a "gamble" as the stock market in its whole crashed down, this is a black swan event so a relatively painless recovery was due for sure. And so it was, the story of how I became a carless rich man, which can now buy a very nice car (well to me anyways) but still drive bus as some more "recovery" is on the table