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Question of the Day: How do you normally pay for purchases in stores?
Retirement Annuities - how is yours doing?
- Thread starter xrapidx
- Start date
nakedpeanut
Expert Member
do you mind me asking who yours is with?
I've just got one with liberty and unsure about my choice now... Still got like ~25 odd days left of my cooling off period before I get locked in.
I've just got one with liberty and unsure about my choice now... Still got like ~25 odd days left of my cooling off period before I get locked in.
Nerfherder
Honorary Master
An RA is a long term investment, you can't really look at it now and try compare it to a normal investment.
@xRapidx you need to factor in the tax break that you get as well...
@xRapidx you need to factor in the tax break that you get as well...
5.8% is a bit high but the thing is the expenses will seem high but there are two reasons for this. 1. Your policy value is low and as time goes on this will increase and the fees will be spread over a larger amount. 2. Costs for setting up the policy tend to be high (admin, lawyers drafting policy documents, etc.), annual fees going forward should be considerably less.
I'm going to have to monitor it... and also work out how much its actually saving me in money tax wise, pointless if the amount saved on a tax break is less than an amount that could be made on a taxable income source.
You are going to have to pay tax anyway when you eventually get your money. I think that the tax savings are decent, but very overhyped by a lot of investment people.
This seems to make sound financial sense. Pump as much money as possible into paying off one's debts before investing in too many other things.
Just remember to save some money though - for those rainy days when "s*$& happens".
Nerfherder
Honorary Master
No, it does have a real benefit.
The reason being is that you pay less tax now, you earn interest on the money and then you pay a lower rate of tax on the money when you have it as a retirement income.
Obviously it works best when you earn a lot of money but there still is an incentive for lower earners.
Its all goign into an access bond so the money is available if needed. I have burnt myself plenty in the past, so have managed to gain some kind of responsibility with regards to money (so hopefully i dont draw it in a drunken spending spree)
I won 3k at a roulette table....mad skillz
Jola
Honorary Master
Can't say that I am impressed with my RA performances - would have been better to just invest in the index over the period ( > 10 yrs).
Pretty good response to this:
http://www.fin24.com/Money/Money-Clinic/Should-I-move-my-RA-20110413
http://www.fin24.com/Money/Money-Clinic/Should-I-move-my-RA-20110413
Dolby
Honorary Master
- Joined
- Jan 31, 2005
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ABSA is expensive - hate them.
When my father passed he left some money in an investment account at ABSA for us. After 6 years I was free to fo what I want and took it ... The fee's were insane!
I emailed and pointed them out and got a reply stating 'Please refer to the letter you signed on xxx date agreeing to the fees. Thanks'
I didn't sign - but fighting was just effort. I'd hoped they'd at least waive something for good will, as the money was there for 7 years and I'd have invested more with them
When my father passed he left some money in an investment account at ABSA for us. After 6 years I was free to fo what I want and took it ... The fee's were insane!
I emailed and pointed them out and got a reply stating 'Please refer to the letter you signed on xxx date agreeing to the fees. Thanks'
I didn't sign - but fighting was just effort. I'd hoped they'd at least waive something for good will, as the money was there for 7 years and I'd have invested more with them