Retirement Annuities

Think I'm going to scale down my RA contributions significantly come next year and push more into equities. At the moment it is well over 10% of my gross but I reckon I'll drop it to 4-5%
 
midnightcaller said:
Is PPS still a worthwhile option to explore?
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Yes I think the PPS Life/Disability package is still a preferable option for most professionals for the Profit Share Account - especially if you don't intend to touch the funds until age 65+.

For RA I have chosen to invest with Investec RA (7% of gross salary) and the Sanlam Echo Bonus RA (5% of gross salary) to balance the portfolio and take advantage of what appears to be a really great long term investment reward. Might swap that 5 and 7 around after reading more up on it...
 
TimBuk2 said:
Yes I think the PPS Life/Disability package is still a preferable option for most professionals for the Profit Share Account - especially if you don't intend to touch the funds until age 65+.

For RA I have chosen to invest with Investec RA (7% of gross salary) and the Sanlam Echo Bonus RA (5% of gross salary) to balance the portfolio and take advantage of what appears to be a really great long term investment reward. Might swap that 5 and 7 around after reading more up on it...
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Rather go with Sygnia, 10x or Easy Equities. Much less fees.
 
TimBuk2 said:
Yes I think the PPS Life/Disability package is still a preferable option for most professionals for the Profit Share Account - especially if you don't intend to touch the funds until age 65+.

For RA I have chosen to invest with Investec RA (7% of gross salary) and the Sanlam Echo Bonus RA (5% of gross salary) to balance the portfolio and take advantage of what appears to be a really great long term investment reward. Might swap that 5 and 7 around after reading more up on it...
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STAY AWAY from Sanlam Echo Bonus (P L E A S E !!!!!!)
 
supersunbird said:
Indeed, rather build your own "bonus" with the 3% or 2.5% pa saving in fees, with no risk on losing out on the bonus due to some change is circumstances.

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The biggest scare was, try to move your RA ... L O L (you will be hit with a massive "penalty". If any of you have this sanlam echo bonus (GET RID OF IT) !!!

The bonus itself, you are paying also for it (if you dont see it ..... start reading up).
 
Mr Smooth said:
Crap, my RA is with Sanlam Echo Bonus since 2016 :eek:
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Ok ... ask for a full detailed statement. Look per month for "advertising costs (or something similar)" ... that are a fee they take (dont know what they sell you PER MONTH), but its day light robbery.
 
Effective. Annual. Charge.
Find out how much yours is on your current RA and compare with other funds in the market. This is how much investment return the fund has to beat for your money to grow. And that’s before inflation. Get advice. But don’t rely on bonuses and rewards.
 
Mr Smooth said:
Thanks all, will definitely start looking at moving my RA.
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The main issue is that you are in reality just funding your own bonus with part the high fees (Sanlam is not a charity), and it not like they outperform the markets to justify the high fees, else we'd see them winning some Raging Bull awards.

Say you invest in some 1% or less index fund RA vs this 4% Sanlam RA, You will be saving 3% in fees to make you own bonus (without added risk like the Sanlam one where the projected bonus is reduced if you lessen or stop contributions). Sure, they will not perform the same in the future, but then again most fund managers do not beat the market consistently anyway.
 
supersunbird said:
The main issue is that you are in reality just funding your own bonus with part the high fees (Sanlam is not a charity), and it not like they outperform the markets to justify the high fees, else we'd see them winning some Raging Bull awards.

Say you invest in some 1% or less index fund RA vs this 4% Sanlam RA, You will be saving 3% in fees to make you own bonus (without added risk like the Sanlam one where the projected bonus is reduced if you lessen or stop contributions). Sure, they will not perform the same in the future, but then again most fund managers do not beat the market consistently anyway.
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The bad thing when it isnt something new (they can fine you heavily for stopping or moving it), but look past it please. The bonus they are "promising", you are truly funding it (lol), sad actually.

Hope a few guys with Sanlam Echo Bonuses see this, and review what is on their statement
 
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?
 
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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Your assumption being that managed funds grow faster. Have a look see how many active funds beat the market consistently for decades on end.
 
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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Look at the fund's fact sheet. A proper LISP like Sygnia also allows me to compare the 5yr performance of over 1500 funds.
 
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