Retirement Annuity Q

[jakehawk]

I currently hold two RA's at two different providers.

I'm starting a new job with a higher salary and looking to supplement my retirement provisions.

Would it be better to increase the payments into my current RA's or to take out new RA's perhaps at different providers to diversify more.

The reason I'm asking is two-fold:
1. I struggle to get the long-term implications with paying more fees vs higher fees at my current RA's
2. I want tax-efficient means to save.

Thanks :0)

 

[Tman*]

more RA's = more policy fees, admin fees, commission to financial advisors etc

 

[backstreetboy]

Just go with Sygnia

 

[BuckRogers]

Who are the 2 providers

 

[GrootVoet]

If you want an RA I would recommend using a platform like AG, Coronation, Sygnia, Satrix, Easy Equities (the list goes on) where you can buy and manage it online and avoid broker fees. Lots of info available which funds to select.

 

[Mr Smooth]

Sygnia Skeleton 70.

 

[Joeboy69]

If you don’t have a TFSA stick R3k pm in there. You don’t get the tax benefits now like with the RA but future tax benefits is a good way to diversify.

 

[Dill]

Can I go directly with Sygnia to invest in a RA? Is the Sygnia Skeleton 70 the best RA out?

Also 10X advertises to have the lowest fees, is this true?

 

[backstreetboy]

Can I go directly with Sygnia to invest in a RA? Is the Sygnia Skeleton 70 the best RA out?

Yes can just sign up online https://online.sygnia.com/Alchemy/Account/Login.

Also 10X advertises to have the lowest fees, is this true?

No they're lying liars who lies... https://www.mymoneytree.co.za/calculator/ra/

 

[BuckRogers]

Just go with Sygnia

That sygnia skeleton 70 fund was started in 2013, so I wonder where they are getting 10 year performance figures unless it is projected, which doesn't mean much

 

[BuckRogers]

Can I go directly with Sygnia to invest in a RA? Is the Sygnia Skeleton 70 the best RA out?

Also 10X advertises to have the lowest fees, is this true?

Any of the new unit trust based platforms, like sygnia. Don't overthink it, not difficult to switch inside platform or section 14 to another provider.
10x - mm, not my first choice

 

[Sideshow Bob]

Yes can just sign up online https://online.sygnia.com/Alchemy/Account/Login.


No they're lying liars who lies... https://www.mymoneytree.co.za/calculator/ra/

Well, not sure about lying but it seems it really depends on what you are comparing against. This is on Sygnia site

"10X is slightly cheaper than the rest at this level, and does become meaningfully cheaper when larger amounts are invested."

https://www.sygnia.co.za/press/which-ra-is-most-cost-effective

 

[Sideshow Bob]

I have split evenly between 10x & Sygnia skeleton 70. Both platforms seem close to each other in terms of admin interface and performance. Sygnia 70 EAC is half of 10x EAC though.

 

[Sideshow Bob]

more RA's = more policy fees, admin fees, commission to financial advisors etc

I didn't pay financial advisor commission for sygnia & 10x RA products. Sygnia 70 EAC (0.62%) is cheaper than 10x (1.23%)

 

[backstreetboy]

Well, not sure about lying but it seems it really depends on what you are comparing against. This is on Sygnia site

"10X is slightly cheaper than the rest at this level, and does become meaningfully cheaper when larger amounts are invested."

https://www.sygnia.co.za/press/which-ra-is-most-cost-effective

View attachment 1229976

View attachment 1229978

You will compare it with https://www.sygnia.co.za/fund/sygnia-skeleton-balanced-70-fund

Total Investment Charge (TIC)

0.52% (Sep 2021)

The UPF fund is for people already in retirement since you need to take out / have a Sygnia Life life policy with it.