Moving away from Liberty Retirement Annuity

zerocool2009

Executive Member
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Sep 4, 2009
Messages
7,312
Assuming you meant "you can't top it up" : Still, what does this mean? The funds are frozen? You can't make any more contributions? Till maturity? I find this difficult to believe.
We just did a section 14 transfer, from Old Mutual to Sanlam, and were given no indication of anything of this sort...

No more contributions. It works on the same principle when you move jobs and you have a provident fund. You need to convert that to a preservation fund. Lets say you have R250 000 in your RA with Liberty. Once you do a section 14, you can move the R250 000, buy stocks of the value, and leave it. If you want to "topup", all firms would advise you to start a NEW RA.

OMW .... From Old Mutual to Sanlam (hope you didnt do the Echo bonus with Sanlam). (Crying a river for you) !

I try to convert guys looking at the "extra fees" that Sanlam charges a month for nothing. Once your section 14 is done, PM me please.
 

Nerfherder

Honorary Master
Joined
Apr 21, 2008
Messages
27,594
Assuming you meant "you can't top it up" : Still, what does this mean? The funds are frozen? You can't make any more contributions? Till maturity? I find this difficult to believe.
We just did a section 14 transfer, from Old Mutual to Sanlam, and were given no indication of anything of this sort...
So as I understand it they have invested your money somewhere else and bought something with that money. You may not be able to just buy more of whatever that is.

So like if you bought a house worth 1 million and it gave you a 10% return on investment every month. You wouldn't necessarily be able buy more of that house next month. You can either sell it or invest in something else.

I don't understand why an RA would be like that though as most of the time you are topping it up every month.
 

Grouter

Executive Member
Joined
Sep 7, 2007
Messages
5,259
No more contributions. It works on the same principle when you move jobs and you have a provident fund. You need to convert that to a preservation fund. Lets say you have R250 000 in your RA with Liberty. Once you do a section 14, you can move the R250 000, buy stocks of the value, and leave it. If you want to "topup", all firms would advise you to start a NEW RA.

OMW .... From Old Mutual to Sanlam (hope you didnt do the Echo bonus with Sanlam). (Crying a river for you) !

I try to convert guys looking at the "extra fees" that Sanlam charges a month for nothing. Once your section 14 is done, PM me please.
The section 14 transfer was done 2 weeks ago. It's already lost a grand... :(
Down from R299,000 to R298,000 in a fortnight. I F@#$%&g well give up on investments. Thankfully it's not everything we have, just a small portion. Between you, me and the lamp-post, we only moved it to spite our old broker, who's a pr1ck...:ROFL:
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
7,312
The section 14 transfer was done 2 weeks ago. It's already lost a grand... :(
Down from R299,000 to R298,000 in a fortnight. I F@#$%&g well give up on investments. Thankfully it's not everything we have, just a small portion. Between you, me and the lamp-post, we only moved it to spite our old broker, who's a pr1ck...:ROFL:

Relax please. The drop in prices is out of your hands. On the up side, the section 14 can take max up to 3 months. So if prices drop, you will have "MORE" buying power on the other side :)

I wonder when will brokers become "extinct"
 

Stonemason

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Mar 13, 2017
Messages
719
It is a bad time for any form of investment. The JSE is unstable and in the past five years added very little value. Putting your money in the bank was worth it until Covid 19 struck and now the only people who make money from the interest you receive is the taxman. The same is true for property. Tenants no longer pay their rent and many landlords are starting to panic.

The worst thing you can do it to start messing with your RA's. If you are young then there is lots of time for the investment to grow and if you are older you stand to lose more.

Do not check on your investments every day, you will get depressed and then you start making stupid decision. Check it once a year and then make informed decisions.
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
7,312
So as I understand it they have invested your money somewhere else and bought something with that money. You may not be able to just buy more of whatever that is.

So like if you bought a house worth 1 million and it gave you a 10% return on investment every month. You wouldn't necessarily be able buy more of that house next month. You can either sell it or invest in something else.

I don't understand why an RA would be like that though as most of the time you are topping it up every month.

Most investments have a "40 day" cancellation period. Its the same with banks and debit orders. You can CANCEL a debit order after it went off, 40 days is the limit.

So lets say you invest into a product, R1000 debit order. And the value is R10 000 now. When the next debit order goes off, you will R11000, but R1000 will be locked in (if you wanted to reserve it). That is how I understand the story.

But the long and short, when you give a section 14 in (that firm knows they have now up to 180 days to make the most out of your cash for themselfs) !!! Bloody greedy bastards hey !
 

Grouter

Executive Member
Joined
Sep 7, 2007
Messages
5,259
Relax please. The drop in prices is out of your hands. On the up side, the section 14 can take max up to 3 months. So if prices drop, you will have "MORE" buying power on the other side :)

I wonder when will brokers become "extinct"
I'm chilled - really! The section 14 transfer is complete. Just to be clear, R299,000 went in to Sanlam 2 weeks ago. The value today is now R298,000. It can stay there now and do what it must. I have stopped worrying about it.
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
7,312
It is a bad time for any form of investment. The JSE is unstable and in the past five years added very little value. Putting your money in the bank was worth it until Covid 19 struck and now the only people who make money from the interest you receive is the taxman. The same is true for property. Tenants no longer pay their rent and many landlords are starting to panic.

The worst thing you can do it to start messing with your RA's. If you are young then there is lots of time for the investment to grow and if you are older you stand to lose more.

Do not check on your investments every day, you will get depressed and then you start making stupid decision. Check it once a year and then make informed decisions.

I must say, I always hear the question, "when is a good time to buy property as an investment". My honest answer. Yesterday was a good day, you waited way to long.

Dont time the markets either. If you wanted a GREAT investment, Sasol was R20 in March 2020. Its now up R150 odd (and drifting in that reason).

For me, diversify is the key !
 

kennedym

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Feb 22, 2016
Messages
100
10x and sygnia use index trackers, as i understand it, alot is offshore which probably explains why they are doing so well and have low fees. And from what i think i know, liberty for example is managed, so becomes expensive? If anyone knows better on this, please comment.
 

kennedym

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Joined
Feb 22, 2016
Messages
100
I must say, I always hear the question, "when is a good time to buy property as an investment". My honest answer. Yesterday was a good day, you waited way to long.

Dont time the markets either. If you wanted a GREAT investment, Sasol was R20 in March 2020. Its now up R150 odd (and drifting in that reason).

For me, diversify is the key !
From my experience with property, the sooner you pay it off, the better, the interest there is another killer. I am lucky to have my properties where they are now, paid off quickly, saved huge amounts on interest.
 

zerocool2009

Executive Member
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Sep 4, 2009
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7,312
I'm chilled - really! The section 14 transfer is complete. Just to be clear, R299,000 went in to Sanlam 2 weeks ago. The value today is now R298,000. It can stay there now and do what it must. I have stopped worrying about it.

What Sanlam product did you buy into ?

Now ... do yourself a favor, ask for a statement after month 3 or 4. If you see a line which says "Bemarkings-en-administrasieheffing" .... start looking to move again !
 

zerocool2009

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Sep 4, 2009
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7,312
From my experience with property, the sooner you pay it off, the better, the interest there is another killer. I am lucky to have my properties where they are now, paid off quickly, saved huge amounts on interest.

Why not regear bonds (let SARS help you) ! Alot of people hate mr TAXMAN ! Boy ohhh boy (in the matrix, do you want the blue or red pill?)
 

nivo

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Joined
Aug 24, 2013
Messages
160
Another good guy in terms of transfers at 10x is Alvin. He did my transfer into a 10x preservation fund.

I can also send you his email.
Hi,

Much appreciated. Please send me his details.
 

zerocool2009

Executive Member
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Sep 4, 2009
Messages
7,312
Maybe he meant "regular" because I've never heard that word before

Re-gear bonds (as in pay it off), borrow against it again, buy property CASH .... and repeat.

Ok, do any of you know what is a flexi bond ? Its the most powerful tool in "good debt"
 

The_Ogre

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Apr 30, 2010
Messages
26,510
Re-gear bonds (as in pay it off), borrow against it again, buy property CASH .... and repeat.

Ok, do any of you know what is a flexi bond ? Its the most powerful tool in "good debt"
I have never heard of that and yes., I have a flexi-bond. Tell me more about this re-gearing
 
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