Liberty RA

MikyMouse said:
I switched from a broker / advisor and Liberty to both Sygnia and 10x by myself and haven't regretted it once!
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+1000
Cut out the brokers and companies with their ridiculous management fees which kill your retirement fund.
 
Which funds remained stable during the weekend special finance minister at sygnia?
 
I did the sums, I pay in total 4% a year in fees. The fees was more last year that what I contributed, and I don't mean R1000's. I mean R10 000's in fees

The broker now asked for a meeting to see the Liberty expert.

I said get all the stats for me please.

Contributed amount per year
Fees charged per year
ROI per year
 
zerocool2009 said:
I did the sums, I pay in total 4% a year in fees. The fees was more last year that what I contributed, and I don't mean R1000's. I mean R10 000's in fees

The broker now asked for a meeting to see the Liberty expert.

I said get all the stats for me please.

Contributed amount per year
Fees charged per year
ROI per year
Click to expand...

That's what they do, break the fees up in pieces. It's only when you add them all up that you realise the perverseness involved.
 
SoTrue said:
That's what they do, break the fees up in pieces. It's only when you add them all up that you realise the perverseness involved.
Click to expand...

There are new laws on the way to expose all these fees in a transparent and understandable way to the man in the street.
It will also enable one to do easy comparisons between products from different providers.
What these companies have been doing with people's money is bordering on criminal because they deliberately obscure the fees with fine print or make it difficult for the layman to understand.
 
I spend today reading up on how fees really kill investments.

The fees are in big bold letters in my contract, and after seeing how they determine the costs, it came down to what do I do if the market does bad.

We are currently in a bad cycle if I can call it that. Since April 2015 the markets never reached 55 000 points on the JSE.

My broker asked me, why am I not complaining when markets do well. Well, awesome question, you still get your cut no matter what.

I approached a few companies dealing with RA's, asking for quotes.

What do you do if your broker say "He cant do anything more ?". In my eyes, he sold me a portfolio. I am sure if he really want he can look what portfolio's are currently doing well over a period and move funds.

Thanks for everyone's comments !
 
zerocool2009 said:
I spend today reading up on how fees really kill investments.

The fees are in big bold letters in my contract, and after seeing how they determine the costs, it came down to what do I do if the market does bad.

We are currently in a bad cycle if I can call it that. Since April 2015 the markets never reached 55 000 points on the JSE.

My broker asked me, why am I not complaining when markets do well. Well, awesome question, you still get your cut no matter what.

I approached a few companies dealing with RA's, asking for quotes.

What do you do if your broker say "He cant do anything more ?". In my eyes, he sold me a portfolio. I am sure if he really want he can look what portfolio's are currently doing well over a period and move funds.

Thanks for everyone's comments !
Click to expand...

My answer to that: Well, if my investment is just doing what the markets does, might as well be in a much cheaper index fund...
 
I recently went through the same exercise when I realised how much my Liberty RA is actually costing me (I took it out in 2005, lets just say it was significant). I moved everything to Allan Gray (split between Allan Gray/Coronation/Investec/Foord funds). I have a passive index funds via my employer so I didn't consider Syngia/10x but they are very good options.

According to my calculations comparing the cost of taking the penalty and making it paid up vs keeping it with Liberty it would be the same amount of money after a couple of years (not even taking new contributions into account!). Seeing as I am still 30 years away from retirement it wasn't a hard decision.

P.S: Don't bother with financial advisors when taking out a RA (unless you can find a fee-based one) and stay away from any RA provided by a life insurance company.
 
Well, I saw the broker from Liberty yesterday ... and sjoe, great sales person.

He told me all the reasons to stay ! After our meeting I read the contract with all the fine print. LOL !

Jip, think it is time for me to move !
 
I cancelled my Liberty RA and switched to Discovery.
Will take me about 5 years to make up the difference, but after 20 years the net benefit will be HUGE!
 
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