Retirement Annuities

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elL0L

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I'm starting to work next year, without pension. I realize the ballpark for an retirement fund is 15% of your salary.

I'm looking into the Sanlam Cumulus Echo, despite the hate for it on the forum. I'm planning to pay only 5% of my salary into the Cumulus Echo RA, to ensure I'm able to never miss a payment.

However, to fully minimize income tax, 15% of your money should go to RA's. I'm thinking of Coronation or Allan Gray's RA. Is this necessary, or are there better alternatives?
 
Sygnia and 10x are exchange traded funds with cheaper fees. Allan gray and coronation are also nice.

You're not obligated to have a yearly increase on your instalment. Sanlam will require it. Fees are normally higher with penalties.
 
mintydroid said:
Sygnia and 10x are exchange traded funds with cheaper fees. Allan gray and coronation are also nice.

You're not obligated to have a yearly increase on your instalment. Sanlam will require it. Fees are normally higher with penalties.
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There is no obligation to increase your installment. Only a minimum of R250 is required, with a lump sum of R5000. You have a choice how your money is invested, in different funds.

The Echo Bonus of 112% of your money, is extremely attractive if you don't miss a payment for 40 years.
 
The ABSA Core RA also looks very decent with fees below 0.6%

ITransact RA also looks good, but I have never heard of anyone using them
 
elL0L said:
No specific reason, the Cumulus Echo just seems like a product from which I can benefit from.
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I started working this year and the Sanlam Cumulus Echo was the most practical one for me. The Echo bonus at the end was the deciding factor for me.

The total worth of my RA is already double of what I have put into it due to that bonus at the end. My monthy contribution will increase 10% each year
 
Stevi said:
I started working this year and the Sanlam Cumulus Echo was the most practical one for me. The Echo bonus at the end was the deciding factor for me.

The total worth of my RA is already double of what I have put into it due to that bonus at the end. My monthy contribution will increase 10% each year
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How much of your salary do you contribute?
 
Echo bonus... that money must come from somewhere. They don't give it to you out of charity.

I rather have something where I can stop and start contributions as and when I need without penalties (even a hidden penalty of now-your-echo-bonus-will-be-crap-because-you-got-retrenched-and-struggled-for-6-months-to-get-a-new-job).

Kind of like people are always going "I don't want to claim from my insurance for insert reason here because then I loose my no claims bonus 10 months from now" so now they go through hassle of trying to claim from other peoples insurance directly.

Anyway, I'm with Coronation and AG (but in other non-AG funds that are on their platform) and 10X. Sygnia also a good option.
 
Stay away from products with a "bonus" or "promises".
Rather go with the recommendations listed here, Sygnia, 10x, AG, Coronation. you will regret going with Sanlam later, too many catches/fine print and inflexibility.
 
Hendrix said:
Stay away from products with a "bonus" or "promises".
Rather go with the recommendations listed here, Sygnia, 10x, AG, Coronation. you will regret going with Sanlam later, too many catches/fine print and inflexibility.
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Sound Advice.
 
Please take a look at Liberty's Agile or RA Builder. It depends on what your affordability is.
 
Billy said:
Compare the charges and commission on ALL offers with those of Allan Gray and Coronation before taking the plunge.
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Allan Gray and Coronation has very high charges and can go as high as 30% as they all use external fund managers.
 
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