Retirement Annuity advice

[Worskos]

Hi All

After some research, I have come to the conclusion that it's best to stay away from companies like Liberty, Sanlam, Old Mutual for an RA. I've read stories about fees being killers and even though some of these offer "wealth bonuses" - It's just covered up in fees etc.

What would be a good choice then?

Coronation?
Allan Gray?


Thanks

 

[Quicks]

Buying stocks perhaps.

Check out EasyEquities?

 

[Smiggles]

Sygnia and / or 10x.

 

[Worskos]

Buying stocks perhaps.

Check out EasyEquities?

I've already got a bunch of ETF's in a TFSA with EE

 

[zerocool2009]

I am personally with :

RA -> Sygnia and Allan Grey
TFSA -> EE and PSG

 

[Pegging]

For RA, I go with Allan gray.
I have 88% in AG balanced fund and 12% in Satrix MSCI world to get maximum foreign exposure.

 

[HowTo]

I'm going to say it once.

For every million you have in the kitty. You will get approx. 4-6K rand.
You can make your own calculation.
Take your current budget.

In my time all policy "smous" was a bad thing. Sanlam etc. they look after their own pockets.
You yourself have to look wat returns you are getting.
I checked my last five years.

Then if you go before 65 then SARS "moers" you hard. He does not look if you retired or not. He sees you as working class.

Just some advice.

 

[Tomtomtom]

After some research, I have come to the conclusion that it's best to stay away from companies like Liberty, Sanlam, Old Mutual for an RA. I've read stories about fees being killers and even though some of these offer "wealth bonuses" - It's just covered up in fees etc.

Yes, the crusty old brands are expensive. Allan Gray & Coronation are younger and less expensive. Sygnia and 10X and EE are younger still and cheaper still.

Is it greed, is it old-company bloat, is it an aging client base leading to more paperwork, or is it survivorship bias? Probably all the above.

Just go with the cheapest option.

 

[SauRoNZA]

Very happy with 10X performance over the years.

 

[SauRoNZA]

Yes, the crusty old brands are expensive. Allan Gray & Coronation are younger and less expensive. Sygnia and 10X and EE are younger still and cheaper still.

Is it greed, is it old-company bloat, is it an aging client base leading to more paperwork, or is it survivorship bias? Probably all the above.

Just go with the cheapest option.

It's the overheads of selling someone else's investments as products.

When you deal with Allan Gray, Coronation, Sygnia and 10X you deal with the investment company directly.

 

[marco79]

I recently moved my RA from Ninety One to Sygnia. Happy with the growth thus far. Fees are almost half.

 

[zerocool2009]

I have a preservation fund with Stanlib

I asked them about the fees, as I have a RA, same value with Sygnia, and its 50% cheaper

Stanlib’s reply: if I want to moan, please move!

So ja! I am structuring an exit in the coming months!

 

[deweyzeph]

Open up an offshore bank account and use as much of your annual SDA as you can to send every last cent you have offshore.

 

[Worskos]

Thanks All

I asked ChatGPT to assist me with some calculations.
I never ever realized how much of an effect these fees can have.....to someone like me looking around...it's easy to say "I'll go with Sanlam" because it's a known/household name.

 

[zerocool2009]

Fees are like cancer!