Preservation Fund Advice

[DarkWarrior]

Hi all

I changed jobs and been rtemoved from my old companies RA. Now I want to move the money to a Preservation Fund to be able to withdraw it if I ever need to. Any suggested ones? I am taking financial advice too but I am a bit annoyed that company products are being pushed to me. So that's why I wanted to get another view/advice from anyone who dealt with such.
It would help too if you can advice on:
Which fund are you using ? Why that fund? Any benefits to be aware of?

 

[SafariTin]

When I went through this in 2017, I found that it was relatively easy to do it myself. Hence saved on the advice fee from a financial advisor.

Opened a preservation fund with another provider and since have moved it from that provider to OutVest. In both cases the provider I was moving to did most of the heavy lifting, they are very keen for you to move your funds to them and are generally very supportive.

I focussed less on the promised returns by the providers and more on the fees. Whereas you'll likely find that the advisor will try and present various scenarios of how one product / provider does better than the next. I wanted a reputable company with the lowest fees (which presently seems to be OutVest / Sygnia / 10x).

Only issue I encountered was when I moved from the initial provider to OutVest, that provider made an error on my tax directive resulting in issues with SARS and delays in getting my return finalised.

Best of luck at the new job!

 

[ShloshMalosh]

You can also remain in your old retirement fund as a "paid up" member and still be able to withdraw...

depends on the fund rules tho... i suggest you speak to them

disclaimer: the above should not be construed as financial advice. ShloshMalosh is not an authorised FSP

 

[zerocool2009]

What ever you do, avoid brokers! They take a cut for signing you up

 

[DarkWarrior]

When I went through this in 2017, I found that it was relatively easy to do it myself. Hence saved on the advice fee from a financial advisor.

Opened a preservation fund with another provider and since have moved it from that provider to OutVest. In both cases the provider I was moving to did most of the heavy lifting, they are very keen for you to move your funds to them and are generally very supportive.

I focussed less on the promised returns by the providers and more on the fees. Whereas you'll likely find that the advisor will try and present various scenarios of how one product / provider does better than the next. I wanted a reputable company with the lowest fees (which presently seems to be OutVest / Sygnia / 10x).

Only issue I encountered was when I moved from the initial provider to OutVest, that provider made an error on my tax directive resulting in issues with SARS and delays in getting my return finalised.

Best of luck at the new job!

Thank you.

Alright this makes sense. I was looking into Sygnia too. They do seem to have one of the lowest fees.


Do you select a product to invest with them or do they just have a default for Preservation fund?

 

[SafariTin]

Thank you.

Alright this makes sense. I was looking into Sygnia too. They do seem to have one of the lowest fees.


Do you select a product to invest with them or do they just have a default for Preservation fund?

Generally the options are pretty limited. Some have variations on high equity vs low equity to "simulate" risk tolerance based on number of years to retirement (obviously within the ambit of regulation 28 of the pension fund act).

I don't know what Sygnia offers. I'm 15+ years from retirement thus personally elected for the highest equity exposure. (high risk) product.