RA's for dummies...

Why are there any fees?

I've moved mine a number of times without such penalties.
 
Ianvn said:
I am awaiting my quote from liberty as well to transfer almost 600k. Want to see the quote 1st before deciding. Might just be worth it as my overall growth has been under 7% pa and the past 3 years has been under 4%. This year so far has been 0.1%. Wish I had kept an eye om my policy a lot earlier :/
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Liberty charged me the max, 25%, cut my losses and moved it, took it as a life lesson.
 
Hi j_sheed_SA,

Please could you contribute roughly 10.25% more next year. New cars are very expensive and without your input the 'tax advisors' may need to drive older cars.

Thank you.
 
As promised:

http://www.iol.co.za/business/perso.../life-assurer-deducts-penalties-twice-1583799
Old Mutual refunded almost R41 000 of the penalties when the financial advice ombud asked the life assurer whether the couple had been double-charged.
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http://www.iol.co.za/business/perso...wn-the-law-to-assurers-over-penalties-1590927
The directive follows a number of cases where life assurance companies have over-penalised policyholders – by R800 000 in one case – or have imposed penalties more than once on the same policy so that the total penalty exceeds the permitted maximums.
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http://www.iol.co.za/business/perso...oncern-about-life-firm-double-dipping-1388517
“Where life insurers have applied methods that are not consistent with the spirit and principles of the settlement and subsequent regulations, the FSB will expect policyholders to be compensated,” he says.
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So koogs, update us on if you have already paid penalty before or not. If not then the R27 000 is more understandable, if you have, they are taking a chance.
 
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Ianvn said:
I am awaiting my quote from liberty as well to transfer almost 600k. Want to see the quote 1st before deciding. Might just be worth it as my overall growth has been under 7% pa and the past 3 years has been under 4%. This year so far has been 0.1%. Wish I had kept an eye om my policy a lot earlier :/
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Hi Ianvn,

Look in your contract what are the penalties to move your RA. It will usually be from 1 month to 60 months.

Shocking to hear the growth stats, I am in the same boat as you.

You got a PM
 
YingYang said:
OK, seems this process is much faster than I thought. Sygnia sent me a mail to confirm which fund I want to move my investment to:

- Sygnia Skeleton Balanced 70 fund – Unit Trust
- Sygnia Skeleton 70 fund – unitised life fund

I have absolutely no idea what the difference between these two is, can you guys assist please?
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Old mutual came back to me:
Good day,



Please find attached the transfer documentation for the above client, which has been signed by the Trustees of the South African Retirement Annuity Fund.



In order to proceed with the transfer, please arrange for the necessary documents to be completed and returned for processing, once approval has been obtained.



Kind regards
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This mail was addressed to Sygnia and I was CC'ed. Total time elapsed is just over a month now. It probably would have been quicker is Old Mutual understood my initial request to do a Sec 14 transfer, instead they were talking BS about me being unable to withdraw any cash from the annuity - which I was aware of.

edit: there is no mention of any fees in either the mail or the transfer documentation. I think its because this RA was made paid up and the fees already deducted a couple of years ago (?)
 
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Just had a look at my portfolio (Sanlam Echo Bonus), has a -2.78% :cry:
It is only just over a year old, too soon to get worried or is it a sign of things to come?
 
Stevi said:
Just had a look at my portfolio (Sanlam Echo Bonus), has a -2.78% :cry:
It is only just over a year old, too soon to get worried or is it a sign of things to come?
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With that stats ... go and open a bank account, or put it in your bond ! Will save almost double digits per year "gewaarborg" !!!!!

If I where you, make a plan ! ... and DONT WAIT !

I am sitting at 6.5% over 9 years ! What a joke ! Any bank account will beat that !
 
Stevi said:
Just had a look at my portfolio (Sanlam Echo Bonus), has a -2.78% :cry:
It is only just over a year old, too soon to get worried or is it a sign of things to come?
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My 10x only gave 1.22% (after fees, 1.56% before) since 1 Jan 2016. That's a index product. So this year has been pretty flat.
 
Recently got a bump in salary and contributing around 16% of my salary to an RA. I can easily push it to the full 27.5% the question is should I? Currently putting that money in a savings/investment account that's giving me 7.35%
 
My Allan Gray RA (Balanced fund) is up 8% ytd. If it gets closer to prime for the year, at least I haven't "lost" anything by not just putting the money in my bond.

Actually, remembering the tax benefit of the RA 8% for the year is effectively outperforming prime so it's not doing too bad this year. Would be sweet if I can end the year 12-15% up though :whistle:
 
RVQ said:
Recently got a bump in salary and contributing around 16% of my salary to an RA. I can easily push it to the full 27.5% the question is should I? Currently putting that money in a savings/investment account that's giving me 7.35%
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Which account?
 
RVQ said:
Recently got a bump in salary and contributing around 16% of my salary to an RA. I can easily push it to the full 27.5% the question is should I? Currently putting that money in a savings/investment account that's giving me 7.35%
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You can get 9% + if you put that in your bond !!!!
 
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