Retirement annuity + general investment advice

[backstreetboy]

Hi All

I am looking for some assistance. I am almost sure that a while back I saw in some thread that someone had kindly calculated the cost comparisons between the 4 low-cost RA's offered by Sygnia,10X, Outvest and Easy Equities. I am trying to find that thread. Thanks in advance.

MyMoneyTree - MyMoneyTree

Be Your Own Advisor

www.mymoneytree.co.za

 

[Magandroid]

MyMoneyTree - MyMoneyTree

Be Your Own Advisor

www.mymoneytree.co.za

Thanks backstreetboy. Appreciate the link and although similar, it's not exactly the one I was looking for. In that post they also explained or discussed why one was better than the other at certain points and a possibility was to switch from one low cost RA to another depending on the value of the RA reached. It similar to what Stealthywealth did on his website but he only compared 3 RA's at that time.
I don't know much about RA's, and a friend and I had a discussion about RA's and whether to switch from the normal/costly broker product to a low cost RA.

 

[backstreetboy]

Thanks backstreetboy. Appreciate the link and although similar, it's not exactly the one I was looking for. In that post they also explained or discussed why one was better than the other at certain points and a possibility was to switch from one low cost RA to another depending on the value of the RA reached. It similar to what Stealthywealth did on his website but he only compared 3 RA's at that time.
I don't know much about RA's, and a friend and I had a discussion about RA's and whether to switch from the normal/costly broker product to a low cost RA.

The thread will be outdated now it seems. Outvest upped their prices by the looks of it and around R1,076,000 + Outvest becomes cheaper than Sygnia. I wouldn't switch though since Sygnia is a proper LISP with a great Alchemy website where you can compare the 5 year performance of over 2000 funds etc. Not to mention the roboadvisor https://ra.sygnia.co.za/roboadvisor/sygnia-roboadvisor. Also Outvest might be cheaper but the fund's performance might be more terrible as well.

CoreShares OUTaggressive Index Fund - 3 Years - 8.1%
Sygnia Skeleton Balanced 70 Fund - 3 Years - 8.6%

 

[Meister-Man]

The thread will be outdated now it seems. Outvest upped their prices by the looks of it and around R1,076,000 + Outvest becomes cheaper than Sygnia. I wouldn't switch though since Sygnia is a proper LISP with a great Alchemy website where you can compare the 5 year performance of over 2000 funds etc. Not to mention the roboadvisor https://ra.sygnia.co.za/roboadvisor/sygnia-roboadvisor. Also Outvest might be cheaper but the fund's performance might be more terrible as well.

CoreShares OUTaggressive Index Fund - 3 Years - 8.1%
Sygnia Skeleton Balanced 70 Fund - 3 Years - 8.6%

You're making me consider changing from 10X to Sygnia.
I had a tfsa with Sygnia a few years back, but subsequently moved that to EE.
Decisions..

 

[Magandroid]

You're making me consider changing from 10X to Sygnia.
I had a tfsa with Sygnia a few years back, but subsequently moved that to EE.
Decisions..

This is why I am looking for that post. The discussion was that if you're starting out then Sygnia was the cheapest. Depending on the value of your RA one of the other low cost providers is cheaper. It was nicely explained in the post especially me being a noob with RA's.

 

[mr_norris]

After seeing that comparison with the fees I am also considering moving from 10x to sygnia. Does anyone know if there are costs involved and hope much? The savings on costs will be quite small for me, but every bit counts!

 

[Meister-Man]

After seeing that comparison with the fees I am also considering moving from 10x to sygnia. Does anyone know if there are costs involved and hope much? The savings on costs will be quite small for me, but every bit counts!

You do it first and report back please, if it goes smoothly I'll go for it

 

[Magandroid]

I found this link comparing the 4 different low-cost funds. Maybe this was the one I read before and thought I saw it on the MyBB forums. Everything's a blur these days

Cheapest high equity RA in South Africa - Tigers on a Golden Leash

I decided to focus on the costs that we can control: fees in our Retirement Annuity (RA). So, today I want to help you pick the cheapest RA in South Africa.

tigersonagoldenleash.co.za

 

[Meister-Man]

I found this link comparing the 4 different low-cost funds. Maybe this was the one I read before and thought I saw it on the MyBB forums. Everything's a blur these days

Cheapest high equity RA in South Africa - Tigers on a Golden Leash

I decided to focus on the costs that we can control: fees in our Retirement Annuity (RA). So, today I want to help you pick the cheapest RA in South Africa.

tigersonagoldenleash.co.za

Same as @backstreetboy said.
Mathematically- Sygnia skeleton and when you hit around R900k or R1m, consider moving to outvest.
Question is, are you going to do this?

 

[Magandroid]

Same as @backstreetboy said.
Mathematically- Sygnia skeleton and when you hit around R900k or R1m, consider moving to outvest.
Question is, are you going to do this?

Not necessarily. The article states that if you want to continue using the cheapest RA fund then you should move to take advantage of the low fees. If the Skeleton Fund performs well when it hits R900K or R1m then and I'm happy with the performance, then I don't see why I should move.

 

[Meister-Man]

Not necessarily. The article states that if you want to continue using the cheapest RA fund then you should move to take advantage of the low fees. If the Skeleton Fund performs well when it hits R900K or R1m then and I'm happy with the performance, then I don't see why I should move.

Let us know how the process goes with your move to Sygnia.

 

[zerocool2009]

Sygnia is very professional!

I checked my stanlib persevered fund today!

When I moved firms in 2008, I invested R260 000

Today its R960 000... and R55000 fees over the years in total!

I opened a RA with them too! So far very happy! Skeleton 70 aint a bad fund

 

[CamiKaze]

Let's say you emigrate, would it be a good idea to get paid out into your bank account? Or rather move the money into a provident fund in SA, even if you live overseas?

 

[Pho3nix]

Let's say you emigrate, would it be a good idea to get paid out into your bank account? Or rather move the money into a provident fund in SA, even if you live overseas?

Depends if you'll be coming back.
Cash injection sometimes helps when you emigrating

 

[zerocool2009]

If you move abroad, your RA is locked in SA for 3 years. The new rule since 1 March 2021

 

[RandomGeek]

Let's say you emigrate, would it be a good idea to get paid out into your bank account? Or rather move the money into a provident fund in SA, even if you live overseas?

Just check the tax impact if you get it paid out in cash.

 

[CamiKaze]

Would it make sense to have the Provident fund in the other country? Abu Dhabi

 

[surface]

Today, I got mail about launch of Sygnia synergy 40/50/60/70 and all look regulation compliant so good for RA, right? Strange is that all these funds are already launched years ago so not sure what 'launch' means here.

 

[derp90]

I have a TFSA with Sygnia, and I'm invested in about 5 different funds. I have some in ESG, some in 4th IR, and the rest is over the 'safer' options like SWIX top 40, property fund etc.

Is this an okay thing to do?

 

[supersunbird]

Today, I got mail about launch of Sygnia synergy 40/50/60/70 and all look regulation compliant so good for RA, right? Strange is that all these funds are already launched years ago so not sure what 'launch' means here.

Name sounds new, not Skeleton funds we do know, so maybe they are new.