RA options for doing a section 14

zerocool2009 said:
I am considering doing a section 14 with an existing RA.

I started by asking a few firms for fee structures to see how they work etc.

The firms I approached so far are ....

Allan Grey
PSG
Stanlib
Satrix

Most firms doesn't allow you to do a section 14 and add a debit order to that lump sum. Stanlib and Allan Grey works like that. Lump sums and DO's are totally split up.

My motto are to choose my own regulation 28 funds. Satrix on the other hand allow RA's, but you invest in pre-selected baskets (which is Satrix funds).

Any other firms you guys think I should contact to get a quote ?
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Ask PSG about the Personal Share Portfolio managed by them and administered by Momentum.

Its high risk as your retirement funds are placed in a share trading account which PSG will manage for you.
The running costs are cheaper (Admin + Monthly Management) although each time shares are bought or sold there will be those costs added, so over-trading will work out expensive unless the trades were good which will offset the costs easily.
You may have up to 25% of your retirement capital in a foreign fund.
You can be 100% invested or 100% in cash earning interest according to the money market rate, if you so choose, however Retirement funds are not usually a place to play the market, hence why I said it can be potentially quite risky.
They may only consider you if you have R1Million or more. That being said I am unsure if they are still open to new business?

Your potential portfolio could look like this:
5% has to be held with Momentum Money Market
20% Cash earning interest
25% Foreign Fund
50% Local Equity (10 shares, no more than 5% each)
 
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Eti1 said:
Fair enough. So how much property exposure *do* you want? And why doesn't a standard passive balanced fund provide enough
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~5% property just aint enough for a high growth portfolio for the younger person in my opinion, the rest (~20%) is then in bonds obviously. With my method 95% can be in high growth (SA equity, foreign equity, SA property) and just 5% in low growth (bonds, which actually can pay out lovely interest).

Easy enough to find people deriding RAs because the younger people can't invest 100% in equity so it sucks and is lower growth. My methods makes it high growth and there is the tax benefit on top of that.
 
zerocool2009 said:
After my move (section 14) from "L" to AG .... My fees dropped by 96% :)
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I realise that Liberty are a bunch of sharks, but a 96% drop is impossible. The AG balanced fund charges +- 1.7%pa, so a 96% drop to 1.7% would mean Liberty charged 1.7%/.04% = 42.5% pa!
 
Verde said:
I realise that Liberty are a bunch of sharks, but a 96% drop is impossible. The AG balanced fund charges +- 1.7%pa, so a 96% drop to 1.7% would mean Liberty charged 1.7%/.04% = 42.5% pa!
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Well, my monthly fee via Liberty was R1200 .... and now its R34 (FOR THE SAME AMOUNT INVESTED). What a wake up call hey. Sorry, 97.16% less

Sharks is an understatement.

I must say .... I LEARNED ALOT IN THE LAST 18 MONTHS
 
zerocool2009 said:
I am considering doing a section 14 with an existing RA.

I started by asking a few firms for fee structures to see how they work etc.

The firms I approached so far are ....

Allan Grey
PSG
Stanlib
Satrix

Most firms doesn't allow you to do a section 14 and add a debit order to that lump sum. Stanlib and Allan Grey works like that. Lump sums and DO's are totally split up.

My motto are to choose my own regulation 28 funds. Satrix on the other hand allow RA's, but you invest in pre-selected baskets (which is Satrix funds).

Any other firms you guys think I should contact to get a quote ?
Click to expand...

ETFSA might be an option if you want a Satrix type solution with more variety.
 
zerocool2009 said:
Well, my monthly fee via Liberty was R1200 .... and now its R34 (FOR THE SAME AMOUNT INVESTED). What a wake up call hey. Sorry, 97.16% less

Sharks is an understatement.

I must say .... I LEARNED ALOT IN THE LAST 18 MONTHS
Click to expand...

Sorry but this makes no sense to me.
If you are paying R34 pm to Allan Gray that implies that the amount invested is +- R24000. (R24000*.017/12 = 34)
If you were paying R1200 pm to Liberty on a R24000 investment, that would mean after 20 months the entire original investment would be consumed by costs.
Are you perhaps including the penalty you paid for the transfer in the Liberty costs, or what is going on here?
 
Verde said:
Sorry but this makes no sense to me.
If you are paying R34 pm to Allan Gray that implies that the amount invested is +- R24000. (R24000*.017/12 = 34)
If you were paying R1200 pm to Liberty on a R24000 investment, that would mean after 20 months the entire original investment would be consumed by costs.
Are you perhaps including the penalty you paid for the transfer in the Liberty costs, or what is going on here?
Click to expand...

Can I send you statements !!!

What my fault was, was to listen to a broker who said pay lump sums in. Since doing that, my fees snowballed !

the amount invested is R350 000
 
Verde said:
Sorry but this makes no sense to me.
If you are paying R34 pm to Allan Gray that implies that the amount invested is +- R24000. (R24000*.017/12 = 34)
If you were paying R1200 pm to Liberty on a R24000 investment, that would mean after 20 months the entire original investment would be consumed by costs.
Are you perhaps including the penalty you paid for the transfer in the Liberty costs, or what is going on here?
Click to expand...

Maybe he means per amount contributed...
 
Verde said:
Sorry but this makes no sense to me.
If you are paying R34 pm to Allan Gray that implies that the amount invested is +- R24000. (R24000*.017/12 = 34)
If you were paying R1200 pm to Liberty on a R24000 investment, that would mean after 20 months the entire original investment would be consumed by costs.
Are you perhaps including the penalty you paid for the transfer in the Liberty costs, or what is going on here?
Click to expand...

to give you a short short, I paid R40 000 in fees for R40 000 growth ! That is why I moved (over a 9 year period)

One rand for you mr ... one rand for us (whoop whoop) ... ENDLESS LOOP !
 
Verde said:
Sorry but this makes no sense to me.
If you are paying R34 pm to Allan Gray that implies that the amount invested is +- R24000. (R24000*.017/12 = 34)
If you were paying R1200 pm to Liberty on a R24000 investment, that would mean after 20 months the entire original investment would be consumed by costs.
Are you perhaps including the penalty you paid for the transfer in the Liberty costs, or what is going on here?
Click to expand...

The penalty to move my RA was R280 (only that). My RA over 60 months (meaning 5 years old), had no bad news to move, because they already milked me silly !
 
AG_Fees.JPG

top is AG => 33.90

The R1011.06 is "L"

96.64% a month (same amount) L O L !!!!!!! Get some popcorn and laugh !
 
zerocool2009 said:
Can I send you statements !!!

What my fault was, was to listen to a broker who said pay lump sums in. Since doing that, my fees snowballed !

the amount invested is R350 000
Click to expand...

OK, then the problem is that you are only looking at the platform fees charged by AG. You are not taking into account the other fees absorbed within the funds eg. fund manager fees, transaction costs etc.

On the AG balanced fund for eg. these fees which won't show on your statement come to +- 1.7% or R6000 pa (R500pm) on a R350000 investment.

So you are still saving a whopping 55% on fees (1-R534/R1200)!
 
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Well ... in short, that is the only fees that I can see NOW. I think the annual fees are taken per year only.

But I will update this if I know more about what is going off !
 
I know someone commented last year also on this, not this thread (the same amount roughly and what I am seeing is on par with that !!!).
 
Hey Verde,

I see my Coronation (Class A to P) and Stanlib Property (Class A to B1) funds in my AG RA were moved to clean pricing classes and now paying a much higher Annual Administration Fee per month on each. Can you shed more light on what's happening here?
 
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