Retirement annuity fund suggestions please

[Broadbanned]

Hi, my retirement annuity is maturing in March. I am 55. Growth has not been fantastic: average of about 7.3 percent pa over 20 years. I want to reinvest into a new RA with another fund and am considering Sygnia Skeleton 70 and Allan Gray Balanced Fund. I don’t see myself needing to retire from the new policy for at least another 10 years, hopefully longer. It seems wise to maximize overseas exposure at this point. Any advice, suggestions, useful experiences to relate?

 

[DapperDanMan]

Any advice, suggestions, useful experiences to relate?

For a moment there I thought you were immediately banned after signing up!

First tip:

The key differences between life and living annuities

And what factors should be taken into account when determining which structure is best suited for your needs.

www.moneyweb.co.za

 

[Broadbanned]

For a moment there I thought you were immediately banned after signing up!

First tip:

The key differences between life and living annuities

And what factors should be taken into account when determining which structure is best suited for your needs.

www.moneyweb.co.za

Thank you, very interesting, I did not know a lot of this, especially that a living annuity can be converted to a life annuity but not vice versa. But what if I want to reinvest on maturity into a new RA with another fund/company? Which fund to choose?

 

[backstreetboy]

Thank you, very interesting, I did not know a lot of this, especially that a living annuity can be converted to a life annuity but not vice versa. But what if I want to reinvest on maturity into a new RA with another fund/company? Which fund to choose?

You go with the cheapest. Sygnia.

 

[supersunbird]

Thank you, very interesting, I did not know a lot of this, especially that a living annuity can be converted to a life annuity but not vice versa. But what if I want to reinvest on maturity into a new RA with another fund/company? Which fund to choose?

Not Allan Gray, there you will pay a monthly platform fee, above the other fees.

 

[Speedster]

Not Allan Gray, there you will pay a monthly platform fee, above the other fees.

My Allan gray outperforms 10X and sygnia over and over again (I have all three)

 

[supersunbird]

My Allan gray outperforms 10X and sygnia over and over again (I have all three)

My AG didn't beat my Coronation.

 

[DapperDanMan]

But what if I want to reinvest on maturity into a new RA with another fund/company? Which fund to choose?

You go with the cheapest. Sygnia.

I would guess that The Purple Group (EasyEquities) is probably even cheaper than Sygnia.

 

[backstreetboy]

I would guess that The Purple Group (EasyEquities) is probably even cheaper than Sygnia.

You'd be wrong. https://mymoneytree.co.za/calculator/ra/

 

[Speedster]

You'd be wrong. https://mymoneytree.co.za/calculator/ra/

That's 2 years old. Everyone still have the same fee structure?

Also, while fees are crucially important, what matters at the end of the day is performance/returns.

 

[backstreetboy]

That's 2 years old. Everyone still have the same fee structure?

Also, while fees are crucially important, what matters at the end of the day is performance/returns.

Seems like it https://www.gofreedom.co.za/best-retirement-annuity.html

 

[Broadbanned]

My maturing ra policy is a traditional one, and the total fees and commissions levied on it over the years seem huge, which is why a very low cost passive fund is appealing. But maybe this is just a knee-jerk reaction ... not sure.

 

[supersunbird]

My maturing ra policy is a traditional one, and the total fees and commissions levied on it over the years seem huge, which is why a very low cost passive fund is appealing. But maybe this is just a knee-jerk reaction ... not sure.

It is not.

 

[Broadbanned]

Thanks for the advice. I did a section 16 transfer into Sygnia Skeleton 70 fund. Process took 2 months. No adviser comm this time. I calculated my return on previous Momentum RA in General Asset portfolio was 7.8 percent over 20 years. This after adviser comm and significantly higher fees than Sygnia. Someone told me this was not a bad return for a conservative fund. There was a guarantee of 4 percent annual return or so minimum. Considering the JSE moved from about 10 000 to 78 000 in that period, the return seems very low to me, however. Comments?