RA vs TFSA Priority

[SafariTin]

I'm in a similar boat.

Previously all my contributions were to employer funds, so I simply cashed them out when moving on. Now my new employer has no fund - and thus I need to open my own to get the tax benefit...

However with this being a personal RA I won't be able to touch that money till 55, which scares me (with the ANC wanting to loot funds). Thus I'm also very curious as to if I should just do a TFSA that allocates funds to a non ZAR based savings vehicle...

Damn man, did you take those big tax knocks? Did you spend the money or reinvest it after the tax? Sadly, it will be very hard to make up the compounded growth that you have missed out on. Especially if you not very young (like below 25).

 

[SauRoNZA]

I'm in a similar boat.

Previously all my contributions were to employer funds, so I simply cashed them out when moving on. Now my new employer has no fund - and thus I need to open my own to get the tax benefit...

However with this being a personal RA I won't be able to touch that money till 55, which scares me (with the ANC wanting to loot funds). Thus I'm also very curious as to if I should just do a TFSA that allocates funds to a non ZAR based savings vehicle...

I hope you meant you transferred them to the new employer and not that you really cashed them out.

 

[shadow_man]

Cashed out - 18% tax to withdraw.

I own two properties and am under 35. Not stressed at all, and I definitely don’t trust this thieving state with any RA funds - so not prepared to leave them lying around.

As is the state is eyeing private funds and I’m not prepared to take that gamble on my retirement.

I’d rather just withdraw and pay off bond at a guaranteed 10% and avoid that risk.