Moving an RA to another provider

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VG008

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Hi

Has anyone moved a RA (unit trust type) to another provider?
1. What's the process like?
2. What was involved? Did the current provider sell your UTs and then transfer the funds to the new provider?

Thank you.
 
VG008 said:
Hi

Has anyone moved a RA (unit trust type) to another provider?
1. What's the process like?
2. What was involved? Did the current provider sell your UTs and then transfer the funds to the new provider?

Thank you.
Click to expand...
Can't remember what the rules etc are but make sure you don't trigger any additional tax so make sure it's transferred correctly and not seen as an early exit.
 
VG008 said:
Hi

Has anyone moved a RA (unit trust type) to another provider?
1. What's the process like?
2. What was involved? Did the current provider sell your UTs and then transfer the funds to the new provider?

Thank you.
Click to expand...
Will take about 30 to 60 days for entire process. If you are moving from a Retirement Annuity to another Retirement Annuity there will be no tax, as this is a tax neutral transfer. It will most likely be done in terms of Section 14(8) of the Pension Funds Act. They cannot charge you any fees for this and your advisor cannot charge you an initial fee for this transfer. The older legacy type RA's might charge a penalty when you leave, these are generally structured as policies and not as investment accounts (or as you put it "unit trust type"). Will most likely be transferred as cash and not units, meaning they will disinvest, transfer and then reinvest.
 
Snyper564 said:
Can't remember what the rules etc are but make sure you don't trigger any additional tax so make sure it's transferred correctly and not seen as an early exit.
Click to expand...
You cannot exit early out of a RA, unless you emigrate, pass away or if the balance is small and below the Income Tax limit
 
It’s called a Section 14 transfer.

Depending on your current provider and their bullshit contract it might cost you some money as it did for me with Old Mutual.

However with their bad performance and bullshit fees I made my money back within three months after moving it to 10x.

10x was amazing every step of the way, Old Mutual was even more painful trying to move away from than to stay with.

10x did all the work and I just had to approve it OM side eventually. Took two months.


Without sounding like a marketing train, If you were consider 10x drop me your details via PM before you try to sign up on the website and I’ll send you a referral.
 
Koosvanwyk said:
You cannot exit early out of a RA, unless you emigrate, pass away or if the balance is small and below the Income Tax limit
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He isn’t exiting, he is transferring.

Very different things.

And you can exit an RA. It’s generally just a silly idea as it costs needless waste of money to do so in contractual crap with most old school providers and also taxes.
 
SauRoNZA said:
He isn’t exiting, he is transferring.

Very different things.

And you can exit an RA. It’s generally just a silly idea as it costs needless waste of money to do so in contractual crap with most old school providers and also taxes.
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I thought you couldn't voluntarily exit (cash out) RA unless you hit 55 (or death and financial emigration). You can "stop" it which means you longer pay monthly premiums into it, buy you could have penalties upon payout when 55 hit.
 
AdrianH said:
I thought you couldn't voluntarily exit (cash out) RA unless you hit 55 (or death and financial emigration). You can "stop" it which means you longer pay monthly premiums into it, buy you could have penalties upon payout when 55 hit.
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Seems @Koosvanwyk was right as it specifically relates to RA (not pension etc) above a value of R75,000 in value.

I guess there was a legislative change at some point.
 
Moved from Stanlib to AG a while back. Only thing I did was confirm there's no penalty and then informed AG I want to move to them. They sent a form I had to complete and that was it. Any issues that came up they sorted out and kept me informed of progress the whole time.
 
Yeah I moved an old one to a new one and was penalised 14% which b strangely enough SARS paid back a good portion of it back.
 
SauRoNZA said:
....

Without sounding like a marketing train, If you were consider 10x drop me your details via PM before you try to sign up on the website and I’ll send you a referral.
Click to expand...

I already got a 10x RA & I want to transfer my AG one to them.

Thanks for everyone's responses:thumbsup:
 
Well Discovery just sent me an ITR3 indicating interest paid out after doing a section 14 transfer. I even have confirmation that it was a successful transfer from the other service provider.
 
SauRoNZA said:
It’s called a Section 14 transfer.

Depending on your current provider and their bullshit contract it might cost you some money as it did for me with Old Mutual.

However with their bad performance and bullshit fees I made my money back within three months after moving it to 10x.

10x was amazing every step of the way, Old Mutual was even more painful trying to move away from than to stay with.

10x did all the work and I just had to approve it OM side eventually. Took two months.


Without sounding like a marketing train, If you were consider 10x drop me your details via PM before you try to sign up on the website and I’ll send you a referral.
Click to expand...


OM own 30% of 10x, so it shouldn’t really be that hard for them to move it.
 
Pegasus said:
OM own 30% of 10x, so it shouldn’t really be that hard for them to move it.
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Source?

Aren’t you thinking of 22Seven maybe?

Regardless they are just a useless company and nobody should use them for investments.
 
VG008 said:
I already got a 10x RA & I want to transfer my AG one to them.

Thanks for everyone's responses:thumbsup:
Click to expand...

As @Hamster said, I probably wouldn’t move it in that case.

Assuming you are directly and self invested with AG and not losing money to a broker.
 
Hamster said:
Or keep both? It's what I'm doing. One passive and one managed.
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I'm moving jobs, which includes an active managed pension (with a cool 0.55% fee).

SauRoNZA said:
As @Hamster said, I probably wouldn’t move it in that case.

Assuming you are directly and self invested with AG and not losing money to a broker.
Click to expand...

I am directly invested but won't be contributing to these RAs going forward (except for a possible top up @ year end).
 
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