Liberty

[brumabull]

Hi guys I just wanted to know what you guys think about the investment builder from liberty for 500 rand a month, I also like the rewards added there

 

[BloodBurner9000]

Just, no.

I've also used liberty's investment builder. Not exactly sure if my contract is the same as yours, but...

Mine, bought as an endowment (at that time I knew little about the pros and cons of such policies) through a salesman 'adviser' has yielded between 2.5 - 3.5 roi % after fees. I went with the excelsior property fund, which was supposed to be conservative (I was saving for a deposit on a house then), tough not not knowing that these conservative investments are most applicable for those with a short horizon. Endowment policy means I'm locked in for 5 years, and equities would have been a much better bet for that investment period. Something my adviser didn't recommend. Marketing showed an expected return of something like 8% p.a. Note the * on the fund sheet which states before commission and fees. I've signed up for 5 years in April 2010. Luckily only R 1000 pm.

Wrt to the bonusses... look at http://www.fool.com/investing/general/2014/02/10/77-reasons-youre-awful-at-managing-money.aspx#ixzz3LfMhCMTk point 14 and 61. Don't make investing more complicated. I would buy unit trusts / eft's directly, through debit order if I were you.

 

[Hendrix]

Its an endowment policy, stay away.
If you want to invest without any "catches" or "penalties", rather invest with a reputable Asset Manager.
In general, stay away from life insurance companies, you will burn your fingers

They love to come up with fancy new names for old products that benefit them.

 

[Hendrix]

Hi guys I just wanted to know what you guys think about the investment builder from liberty for 500 rand a month, I also like the rewards added there

Always remember, nothings free, you always end up paying for these "rewards"
Those high fees and hidden costs pay for that.

 

[Masataka]

I stay away from Liberty, period. Depending on what accounts you have with them, you need to access them via different sites - these sites are horribly out-dated. Support is terrible and they love milking you for maximum fees.

Moved the money I had with them to a couple other institutions - Allan Gray has impressed me the most especially with their online portal.

 

[Drifter]

I work @ Liberty, cancelled all my policies with them ages ago... Get the hint?

 

[Nikita_k]

I have an RA with liberty, had it for about 2 to 3 years I think. I want out. Last week I tried to access the online portal and I couldn't log in, so I asked my FA to send me a detailed statement. I couldn't believe my eyes when I saw how much fees they were deducting. the FA tells me he will give me an explanation before the end of this week as for why I am being charged like that. I told him I want out but he reckons it's not a good idea. I am not contributing much towards this RA but every cent counts.

 

[srothman]

/subscribes

I would also like to close up and transfer elsewhere, just worried about whatever penalties I'll be paying on the funds already invested.

 

[Nikita_k]

/subscribes

I would also like to close up and transfer elsewhere, just worried about whatever penalties I'll be paying on the funds already invested.

are you also with Liberty?

 

[srothman]

Yes

I have a little over R100k with them at the moment, average growth since inception around 12.5%. Ideally I would like to transfer those funds to one of my other funds that provide me flexibility (unit trust based).

Most posts I come across on this are relatively dated, and I believe there's been some significant changes around the flexibility of moving funds from one provider to another. Not sure what will and won't be applicable in my situation though.

 

[Nikita_k]

Yes

I have a little over R100k with them at the moment, average growth since inception around 12.5%. Ideally I would like to transfer those funds to one of my other funds that provide me flexibility (unit trust based).

Most posts I come across on this are relatively dated, and I believe there's been some significant changes around the flexibility of moving funds from one provider to another. Not sure what will and won't be applicable in my situation though.

can you please check how your fees are structured? I am meeting the FA on Monday, he said we needed to sit so he can explain everything to me. not sure we should meet in person when he can send me an email or explain on the phone why they charge me management fees 4 times in a month. I have just over 10k in there, I don't think I will loose out much if I decide to move. otherwise I will request to reduce the monthly contribution to something like R100 a month.

 

[srothman]

No problem, I sent him an e-mail now and will let you know when (if) he gets back to me.

 

[Quentin Legend]

UNIT Trusts, or Collective Investment Schemes are also an option if you don't want to get locked in for 5 years.

The Investment Builder is just Liberty's investment product, you choose your own portfolio. Growth ranges between 7 - 24% per annum depending on the portfolio chosen.

 

[srothman]

Feedback I got:

The penalty will depend on how much you wish to reduce your premium with, and a what-if quote will then be generated with how much you will end up paying.

I asked him to give me a quote on reducing my premium with 50%, and then cancelling it altogether, and then see what the damage will be.

 

[skayfe]

I have an RA with liberty, had it for about 2 to 3 years I think. I want out. Last week I tried to access the online portal and I couldn't log in, so I asked my FA to send me a detailed statement. I couldn't believe my eyes when I saw how much fees they were deducting. the FA tells me he will give me an explanation before the end of this week as for why I am being charged like that. I told him I want out but he reckons it's not a good idea. I am not contributing much towards this RA but every cent counts.

View attachment 192760

it sickens me that an FA would even suggest something like this. It's their job to know fee structure and advise you accordingly prior to signing up.

Why ppl don't just get advice from an FA through one or two or a few consultations and go directly to a service provider like Coronation or Allan Gray or whoever...it's just beyond me.

Go get a new FA or never use this guy again. The only reason they sell **** like this is the return they make off your investment.

Good luck.

 

[Nikita_k]

it sickens me that an FA would even suggest something like this. It's their job to know fee structure and advise you accordingly prior to signing up.

Why ppl don't just get advice from an FA through one or two or a few consultations and go directly to a service provider like Coronation or Allan Gray or whoever...it's just beyond me.

Go get a new FA or never use this guy again. The only reason they sell **** like this is the return they make off your investment.

Good luck.

let's just say when I first joined I had no knowledge what so ever about investments. but the best thing I did out of this was committing to a less amount. nothing he says can justify those fees. it's ridiculous.

 

[Billy]

it sickens me that an FA would even suggest something like this. It's their job to know fee structure and advise you accordingly prior to signing up.

Why ppl don't just get advice from an FA through one or two or a few consultations and go directly to a service provider like
Coronation or Allan Gray or whoever...it's just beyond me.

Go get a new FA or never use this guy again. The only reason they sell **** like this is the return they make off your investment.

Good luck.

Couldn't agree more. I was with Liberty for years, before I discovered Allan Gray. I just wish that I had discovered them sooner.

Fortunately My family has learnt, and is invested in Allan Gray and Coronation.

Stay away from Insurance Companies and Financial Advisers, they only want your money.

 

[srothman]

let's just say when I first joined I had no knowledge what so ever about investments. but the best thing I did out of this was committing to a less amount. nothing he says can justify those fees. it's ridiculous.

I think this is the case more often than not. I got hooked through the bank upselling products to me, convincing me I needed it.

I haven't heard any further feedback from my FA regarding a more detailed fee breakdown either. Chalking this one up to a lesson learned. Will leave it be, let it grow with the 10% annually, and just pump my other money in elsewhere.

 

[rynoZA]

Hi guys, question.

I am debt free, age 28. FA advised me to get a Liberty Investment builder into which a debit order of R50k a month is deposited.

I checked the value the other day after my first payment and it was standing at R47500. I also noticed this is a 5 year "Liberty short term endownment" according to him.Can i withdraw before 5 years?

i was actually just looking for 1 - 3 year investment as a saving for a deposit for a house. But this does not seem like the right investment to me.I have no idea about investments, especially if i have lost around R2500 already after my first payment!?

 

[Suspect99]

Hi guys, question.

I am debt free, age 28. FA advised me to get a Liberty Investment builder into which a debit order of R50k a month is deposited.

I checked the value the other day after my first payment and it was standing at R47500. I also noticed this is a 5 year "Liberty short term endownment" according to him.Can i withdraw before 5 years?

i was actually just looking for 1 - 3 year investment as a saving for a deposit for a house. But this does not seem like the right investment to me.I have no idea about investments, especially if i have lost around R2500 already after my first payment!?

50k a month ? :wtf: . Liberty are sharks, they'll nail you on all the fees. get out early and write the loss off as school fees.