Retirement Annuities

LPCPT said:
Just a question. How do you know when the cost is low that the growth is still high or above average.
It's of no use to save on fees but then loose on growth.
Just saying.
Also have Echo. According to contract, bonus is added at retirement or termination.
So what is the options, move RA or terminate and let it rest?
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When you find someone who is willing to give up their fee if they don't beat the market, then trust that they're worth the fee. Otherwise, just go low fee.
 
Scooby_Doo said:
Your assumption being that managed funds grow faster. Have a look see how many active funds beat the market consistently for decades on end.
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I asked a question not made an assumption. Some of us are learning here.
 
3WA said:
When you find someone who is willing to give up their fee if they don't beat the market, then trust that they're worth the fee. Otherwise, just go low fee.
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Care to share who these companies are? (Low fee, or performance based fee)
 
LPCPT said:
I asked a question not made an assumption. Some of us are learning here.
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If you have the chance, get a book called "Fooled by Randomness" by Nassim Nicholas Taleb. The upshot is that if you take 100 fund managers, and each one is a moron but has a 50% chance of beating the market, after seven years you'll still have one moron who's been beating the market every year without knowing what he's doing.

LPCPT said:
Care to share who these companies are? (Low fee, or performance based fee)
Click to expand...

There isn't one :laugh: :laugh: :laugh: All of the high fee companies will take their money whether they make you richer or poorer! That's why low fee is best. Fees are the one thing in your control.

For low-fee, Sygnia and their skeleton fund products. Or 10X.
 
LPCPT said:
Just a question. How do you know when the cost is low that the growth is still high or above average.
It's of no use to save on fees but then loose on growth.
Just saying.
Also have Echo. According to contract, bonus is added at retirement or termination.
So what is the options, move RA or terminate and let it rest?
Click to expand...

Echo bonus rules (or payouts)

768340

You should have a table (when you terminate), how much fees they will hold back (but honestly, cut your losses now). If the thing is new, they will hit you harder vs if its old.

Related to fees and termination, ask the investment firm this easy question : I am planning a section 14, whats the current value, and the penalty for moving (if any)
 
LPCPT said:
Just a question. How do you know when the cost is low that the growth is still high or above average.
It's of no use to save on fees but then loose on growth.
Just saying.
Also have Echo. According to contract, bonus is added at retirement or termination.
So what is the options, move RA or terminate and let it rest?
Click to expand...

Why can't is just be average?

Who will be the top balanced fund in 2020? Then we can compare your choice against the index ones at end of the year.
 
LPCPT said:
Care to share who these companies are? (Low fee, or performance based fee)
Click to expand...
Allan Gray....sort of

The fee we charge depends on how well the Balanced Fund performs against its benchmark.

Min: 0.5% - Max: 1.5% excluding VAT

  • 1% is charged when the unit trust performance is the same as its benchmark’s performance.
  • 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.
Click to expand...
 
3WA said:
If you have the chance, get a book called "Fooled by Randomness" by Nassim Nicholas Taleb. The upshot is that if you take 100 fund managers, and each one is a moron but has a 50% chance of beating the market, after seven years you'll still have one moron who's been beating the market every year without knowing what he's doing.



There isn't one :laugh: :laugh: :laugh: All of the high fee companies will take their money whether they make you richer or poorer! That's why low fee is best. Fees are the one thing in your control.

For low-fee, Sygnia and their skeleton fund products. Or 10X.
Click to expand...

Sygnia Skeleton Balanced 70 Fund -> 12.5% year to year (ending 31 Dec 2019) ....Not bad I would say
 
Hamster said:
Allan Gray....sort of

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That's just the internal fund fees, then there is the platform fee:

Annual administration fees Our fee for the administration of your investment is charged on the market value across all local platform investments linked to your investor number. We charge an annual administration fee (excl. VAT) of a maximum of 0.5% on the first R1.5m invested, 0.2% on the next R3.5m and 0.1% on the balance over R5m. For any investments in Allan Gray unit trusts we charge a flat annual administration fee of 0.2% (excl. VAT).
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I do use Coronation for some of my money, there it's just the internal fund fee.
 
Will have to wait a bit for the Sanlam December fact sheets to come out to compare them against 10X and Sygnia Skeleton 70:

Personal | Sanlam

Sanlam, one of the largest FSPs in South Africa, provides insurance, investment, financial planning & retirement advice to individuals, groups and corporates.
www.sanlam.co.za
 
supersunbird said:
Will have to wait a bit for the Sanlam December fact sheets to come out to compare them against 10X and Sygnia Skeleton 70:

Personal | Sanlam

Sanlam, one of the largest FSPs in South Africa, provides insurance, investment, financial planning & retirement advice to individuals, groups and corporates.
www.sanlam.co.za
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Sygnia is already out ! That is why I mentioned it up
 
This is the fee structure I'm paying. Waiting for actual amounts from my FA.
 

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zerocool2009 said:
Echo bonus rules (or payouts)

View attachment 768340

You should have a table (when you terminate), how much fees they will hold back (but honestly, cut your losses now). If the thing is new, they will hit you harder vs if its old.

Related to fees and termination, ask the investment firm this easy question : I am planning a section 14, whats the current value, and the penalty for moving (if any)
Click to expand...
Thanks.
I am in Echo since August 2015 and I contribute annually. So every year end of August I invest a fixed amount.
Started with 12K, later upped it to 18K
What is Section 14 btw?
 
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