RA's for dummies...

[Scooby_Doo]

Not arguing your point, but just putting this out there. It's not a bad way for getting into offshore equity.

This works, but you will need to pay tax in rands. So if the underlying assets do not grow at all but the rand tanks you will still have to pay capital gains, as you will make money in rand terms. Think how much this would hurt if we experience hyperinflation.

 

[Messugga]

This works, but you will need to pay tax in rands. So if the underlying assets do not grow at all but the rand tanks you will still have to pay capital gains, as you will make money in rand terms. Think how much this would hurt if we experience hyperinflation.

You'd have to do that anyway when bringing in offshore funds back into SA. I use it exactly as that - a hedge against the rand tanking.

 

[Scooby_Doo]

You'd have to do that anyway when bringing in offshore funds back into SA. I use it exactly as that - a hedge against the rand tanking.

Different with offshore, you pay tax when you sell the asset in the currency you sold it in, you will not have to take the rand conversion into account for tax.

 

[Messugga]

Different with offshore, you pay tax when you sell the asset in the currency you sold it in, you will not have to take the rand conversion into account for tax.

Ah I get you.

 

[Billy]

Which fund - their balanced fund? And performance over what time period are you talking about?

Take your pick. Inception ,10 years, 5 years, 3 years. Check yourself or don't.

 

[supersunbird]

Ah I get you.

But that does not apply to SATRIX S&P 500 "Feeder ETF" you mentioned, since you'd be selling it in Rands.

So even if the S&P 500 stays flat for 5 years, and the rand falls 500%, you'll have to pay CGT when you sell that ETF on that "fake" rand profit.

 

[Scooby_Doo]

But that does not apply to SATRIX S&P 500 "Feeder ETF" you mentioned, since you'd be selling it in Rands.

So even if the S&P 500 stays flat for 5 years, and the rand falls 500%, you'll have to pay CGT when you sell that ETF on that "fake" rand profit.

This, and since SA inflation is ~2-4% higher than US or EU, you should expect the rand to depreciate by that amount per year at a minimum.

 

[Hamster]

And when they under-perform? No repayment for times that they charged the performance fees..

If the Balanced Fund beats or fails to achieve benchmark performance (measured over two years), for each percentage difference, we add or deduct 0.1% to the fee.

Right there on their site.

Effectively, 1.75% maximum charge, minimum 1.33% charge including VAT, transaction costs etc.

It's not bad. I'm in the slow process of moving my Stanlib one to another provider (read: away from Stanlib and FA) and Allan Gray is my pick amongst the actively managed ones. Prudential might be cheaper though, but at least I understand Allan Gray's charges.

 

[I.am.Sam]

Damn, you should try and increase it when you can. Retiring poor would suck

I'm 33. Trying to put away as much as possible and finding it difficult to get through every month, but way too scared to retire with not enough.

yeah it sucks but im going to try maybe with property as well

You need to join a union Sam, and strike for 12 500

haha best thing ever to do, maybe one day we can all strike like this

Or change jobs or work towards a promotion of some form.

easier said than done ...one day one day

 

[jman]

Right there on their site.

Effectively, 1.75% maximum charge, minimum 1.33% charge including VAT, transaction costs etc.

It's not bad. I'm in the slow process of moving my Stanlib one to another provider (read: away from Stanlib and FA) and Allan Gray is my pick amongst the actively managed ones. Prudential might be cheaper though, but at least I understand Allan Gray's charges.

Ahh right, hadn't got round to checking. Not bad considering they give back the fee if they under-perform. But there are cheaper out there. I prefer cheap and index based. But let's not get into another active vs passive debate..

 

[Hamster]

Ahh right, hadn't got round to checking. Not bad considering they give back the fee if they under-perform. But there are cheaper out there. I prefer cheap and index based. But let's not get into another active vs passive debate..

Why debate? Get both

My 10x is way bigger than my Stanlib one, so I'm with you on that.

 

[jman]

Why debate? Get both

My 10x is way bigger than my Stanlib one, so I'm with you on that.

I've got access to Alan Gray under my work pension if I so choose. Along with Coronation, Investec, Nedgroup (can do a combination of them). My preference is towards Nedgroup - they have the lowest fees and performance has been pretty solid (11,4% 7 years annualized). But could maybe throw a small bone to Alan Gray, so to speak lol.

I have a preservation with 10x from my old company, and have gotten the SO onto Sygnia skeleton 70 core

 

[diapason]

Hello all,

so currently im with my company paying into a provident fund

Im thinking of cancelling this and getting myself a RA

whats the best RA to go with.

Budget is like R1k at the moment

got a quote with sanlam for a payout of like 1.7m after another 28 years with no growth

Before cancelling your company provident fund, check whether there is death and disability insurance connected to it.

 

[jman]

Before cancelling your company provident fund, check whether there is death and disability insurance connected to it.

Good point. There usually is. And most companies force you to be on their pension fund

 

[supersunbird]

My employer one has to be member of the provident fund (10X), contributing from minimum 5% to maximum 27.5% (2.5% increments).

Life cover and disability are separate with Discovery.