Job Change

Fjorko

Fjorko

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Hi Guys

I'm thinking of changing jobs, but want get a feel for what the best options are for moving my provident fund. I know my options are basically:

1. Cash out and pay tax ( not an option for me )
2. Move to preservation fund - no tax ( do i need to have this up and running beforehand ? ) -> most people i've talked to suggest this route
3. Move to my RA ( no tax )

I am not planning on touching the money, so my idea was to move it to my existing RA with Discovery, or to take out a new one with a different company ( suggestions ? ) and increase my contributions.

I also know some of you suggest taking the tax hit and moving your money overseas and make it up in a market where there is better growth, but this is a risk i cannot take at this stage of my life, unless someone REALLY knowledgeable around this can contact me and discuss my options.

Please also note - i'm not financially savvy, i know the basics, and find all this very intimidating, so keep that in mind. I'm also very careful when it comes to financial advisors, and there are very few whose advice i trust.

Reason for this post is to just get a feel for what you guys would do in my situation. I'm just trying to be careful with what i have, so i hope you understand. I cannot afford to lose money at this stage in my life.

Thanks for any advice !

Cheers !
 
Doing the same and moving funds to 10x Preservation Fund. Signed up on Friday and they are already speaking to my current Retirement Fund to move things over.

Wouldn’t do RA as performance hasn’t been great.
 
Pho3nix said:
Doing the same and moving funds to 10x Preservation Fund. Signed up on Friday and they are already speaking to my current Retirement Fund to move things over.

Wouldn’t do RA as performance hasn’t been great.
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Thanks, any reason you went with them. I see their fees a pretty high compared to Sygnia for example ?
 
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So since cashing out and investing offshore is out of the question you are left with three options really:

1. Move it to an RA
2. Move it to a preservation fund
3. Move it to the new company's pension fund

Short answer: don't go with an RA unless it is your only choice, the rest is basically more or less the same (obvious legal differences aside). Same shitty reg 28 funds wrapped up in all sorts of laws etc.

I would pick a preservation fund with Sygnia or 10X.
 
The nice thing about Sygnia... you can do your own mix and match! (But overall the account should comply to reg28)
 
@Fjorko i would recommend not moving it to your new company's pension fund. I personally dont like to bring the company and my finances too close together, also your companys pension fund may also only have limited choices. Just invest it directly with a reputable institution.

Advantage of preservation fund compared to RA is that a preservation fund allows for a single withdrawal before retirement (and that can be up to 100% of the funds value).

Edit: im familiar with Coronation and Sygnia, both are good with Sygnia the lower cost option
 
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Thanks guys, appreciate the input here. Preservation fund it will probably be then. So i assume i can pick an institution and they will arrange the transfer from my existing prov fund ? Or how does it work ?
 
Fjorko said:
Thanks guys, appreciate the input here. Preservation fund it will probably be then. So i assume i can pick an institution and they will arrange the transfer from my existing prov fund ? Or how does it work ?
Click to expand...
Yes once you have appointed the new company, they will contact the old company to arrange. May take a couple of weeks or a month or 2 if the old place is tardy though
 
Fjorko said:
Thanks, any reason you went with them. I see their fees a pretty high compared to Signia for example ?
Click to expand...

Sygnia was taking too long to get back to me and HR needed to start the process. Went with 10x since I could do everything online quickly and no forms
 
Pho3nix said:
Sygnia was taking too long to get back to me and HR needed to start the process. Went with 10x since I could do everything online quickly and no forms
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OK cool, yes i have done some research, and found many people complaining that Signia's admin dept is quite terrible.
 
Fjorko said:
OK cool, yes i have done some research, and found many people complaining that Signia's admin dept is quite terrible.
Click to expand...

Signed up on Friday and already got notification that they’ve spoken to the company fund. Wanted to go with Sygnia also but saving some fees and then being frustrated when I need help would bother me a lot
 
Understand, and yes, i agree with that. Is 10x a reputable company ?, I mean it's a lot of money to entrust to a company i don't know much about. Most people usually stick with the known brands like Allan Gray, Prudential, Coronation etc...
 
Fjorko said:
Understand, and yes, i agree with that. Is 10x a reputable company ?, I mean it's a lot of money to entrust to a company i don't know much about. Most people usually stick with the known brands like Allan Gray, Prudential, Coronation etc...
Click to expand...

Give it a look on the forum, very well known.
 
Pretty sure preservation fund requires tax.. ie all three are ra type of vehicles.
 
So in posting this thread, i came to the very sudden realization that I'm SUCH a noob when it comes to financial & investment knowledge. To me it never mattered - I'm not a finance type of guy, and it always confused me, so i just shrugged it off, and - like the 95% of SA's population, i fell into the trap of not saving for my retirement early enough in my life. In dealing with Life cover, policies of various kinds, and more recently RA's & Provident Funds, I have always trusted the advice of financial advisors ( who wouldn't right ? ) to have my "best" (financial) interests at heart. Boy, oh boy, oh boy, let's just say i thought wrong.

As a result, I'm behind, VERY behind. I made poor decisions, and procrastinated for waaaay to long.

End result : I'm now scrambling to try and correct my wrongs, and salvage what little i can.

I'm not delusional - I know i won't have enough to retire with, but I will try my best, armed with the knowledge i now have, and still need to learn, to make the best of a dire situation.

In my pursuit to cram as much knowledge into my poor head over the weekend, i have learnt so much that i didn't know before about RA's, ETF's, UT's, Preservation Funds, TFSA's, TER's EAC's TIC', MDD's you name it...

Still only scratched the surface, but i have new found respect for all you lot that understand all this crap.

So, to make a long story short, In my frantic research around RA's, i came across someone commenting on a site where he had this to say about a RA fund comparison article that someone ran, and i thought i'd post it here and ask what you guys have to say about it :

1597182198989.png

I see where he is coming from. But If not an RA, then what ? I mean - what else is left in this land of ours to try and salvage some sort of retirement nest egg ? TFSA, Savings Account? Cash under my mattress :) ?

PS: If this post does nothing else, then I hope someone much younger than me, with time on their side at least learns from my mistakes : Save as much as you can, as early as you can, and learn how to do it yourself ( if possible ) from others that have done it successfully before you.
 
Fjorko said:
So in posting this thread, i came to the very sudden realization that I'm SUCH a noob when it comes to financial & investment knowledge. To me it never mattered - I'm not a finance type of guy, and it always confused me, so i just shrugged it off, and - like the 95% of SA's population, i fell into the trap of not saving for my retirement early enough in my life. In dealing with Life cover, policies of various kinds, and more recently RA's & Provident Funds, I have always trusted the advice of financial advisors ( who wouldn't right ? ) to have my "best" (financial) interests at heart. Boy, oh boy, oh boy, let's just say i thought wrong.

As a result, I'm behind, VERY behind. I made poor decisions, and procrastinated for waaaay to long.

End result : I'm now scrambling to try and correct my wrongs, and salvage what little i can.

I'm not delusional - I know i won't have enough to retire with, but I will try my best, armed with the knowledge i now have, and still need to learn, to make the best of a dire situation.

In my pursuit to cram as much knowledge into my poor head over the weekend, i have learnt so much that i didn't know before about RA's, ETF's, UT's, Preservation Funds, TFSA's, TER's EAC's TIC', MDD's you name it...

Still only scratched the surface, but i have new found respect for all you lot that understand all this crap.

So, to make a long story short, In my frantic research around RA's, i came across someone commenting on a site where he had this to say about a RA fund comparison article that someone ran, and i thought i'd post it here and ask what you guys have to say about it :

View attachment 891216

I see where he is coming from. But If not an RA, then what ? I mean - what else is left in this land of ours to try and salvage some sort of retirement nest egg ? TFSA, Savings Account? Cash under my mattress :) ?

PS: If this post does nothing else, then I hope someone much younger than me, with time on their side at least learns from my mistakes : Save as much as you can, as early as you can, and learn how to do it yourself ( if possible ) from others that have done it successfully before you.
Click to expand...

You always have the alternative of finding a good assets manager at some bank who would manage your portfolio for you. It would cost some % or whatever terms they have but for people who don't know how or just don't have the time this is a sensible area to look into as an alternative.

Just my 2cents. :)
 
The only crap with moving firms (when you had a provident fund)... and converted that to a preservation fund-> you cant topup !

You need to start a new one from scratch
 
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