pinball wizard
Honorary Master
Yeah, as with any RA, you are only liable for any tax when it pays out.
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Retirement Annuity questions
- Thread starter TofuMofu
- Start date
Yeah, as with any RA, you are only liable for any tax when it pays out.
TofuMofu
Honorary Master
I requested for it to be paid up. I can't move he funds so it will just have the lay there for 25 years I suppose.
Yep...that's how I feel. Very very unhappy with how I was done it with the terms of this crap.
Yep...that's how I feel. Very very unhappy with how I was done it with the terms of this crap.
LazyLion
King of de Jungle
No brokers. They charge admin fees that eat a large amount of your gains.
Just spend some time,read up on investing and do it yourself.
PS: And ditch Liberty too. They are also the devil.
(no offense intended to anyone in the industry, but facts are facts).
Just spend some time,read up on investing and do it yourself.
PS: And ditch Liberty too. They are also the devil.
(no offense intended to anyone in the industry, but facts are facts).
TofuMofu
Honorary Master
The company uses Liberty, so I don't have a say in it
Done
meh...bummed out but wtf can I do.thats exactly what it is
So for example, if I chose the Discovery plan that Lazy Lion is on, I can contact discovery directly?
pinball wizard
Honorary Master
I was stuck in a similar situation and have done this before with Liberty and Momentum.
Why not make Liberty work for their money. You are paying them anyway and they want your money. Use this as leverage.
Instruct Liberty to move the money, as cheaply as possible, to a 'tax haven' preserver account (no sure what to call this, but you can avoid tax until you cash out at retirement). The preserver account will continue to track the market and you can suspend paying premiums. Liberty will quickly get the forms together and advise the best course of action.
Tell Liberty you want to review their plan before giving the go ahead instruction. check to see if it's worth it with regards to fees and growth potential (5 years, 10 years).
My fund has grown by 50% between Sept 2012 and Sept 2015 (incl fees).
Why not make Liberty work for their money. You are paying them anyway and they want your money. Use this as leverage.
Instruct Liberty to move the money, as cheaply as possible, to a 'tax haven' preserver account (no sure what to call this, but you can avoid tax until you cash out at retirement). The preserver account will continue to track the market and you can suspend paying premiums. Liberty will quickly get the forms together and advise the best course of action.
Tell Liberty you want to review their plan before giving the go ahead instruction. check to see if it's worth it with regards to fees and growth potential (5 years, 10 years).
My fund has grown by 50% between Sept 2012 and Sept 2015 (incl fees).
LazyLion
King of de Jungle
I think so. Yes.
I think you can do what is called a "Section 14" where you pay up your existing RA, and you can put the funds in another RA. Effectively cancelling the old one. There will be costs / penalties / tax implications - A descent broker should be able to give you all the information and quotations, you can then make an informed decision.
Quentin Legend
Well-Known Member
Be careful of those comparisons, very easy to cook those stats.
I can already guarantee those are not comparing apples with apples.
Discovery likes to use their confusing Vitality boosters with the their comparisons, assuming you have Diamond vitality status throughout the investment period as well as a bunch of other ridiculous assumptions.
Rkootknir
Expert Member
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That's correct. A section 14 is what the industry calls transfers (it refers to section 14 of the Pension Funds Act which deals with the transfer of business from one retirement fund \ retirement annuity to another).
On transfer there might be causal event charges (which cannot be higher than 30% of the investment value as mentioned earlier). Retirement annuities can only be transferred to other retirement annuities or preservation funds.
OP: In general, you can't consolidate a personal RA with your company plan - unless your company plan is a group RA arrangement - which is typically what you get when Liberty is the fund administrator.
You could consider contacting your HR person \ Liberty and asking them if it would be possible to transfer your retirement annuity to your company plan. Not that Liberty is any good but then at least all your benefits are consolidated in one place...
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TofuMofu
Honorary Master
That's correct. A section 14 is what the industry calls transfers (it refers to section 14 of the Pension Funds Act which deals with the transfer of business from one retirement fund \ retirement annuity to another).
On transfer there might be causal event charges (which cannot be higher than 30% of the investment value as mentioned earlier). Retirement annuities can only be transferred to other retirement annuities or preservation funds.
OP: In general, you can't consolidate a personal RA with your company plan - unless your company plan is a group RA arrangement - which is typically what you get when Liberty is the fund administrator.
You could consider contacting your HR person \ Liberty and asking them if it would be possible to transfer your retirement annuity to your company plan. Not that Liberty is any good but then at least all your benefits are consolidated in one place...
Thanks!
No - Discovery like all the other insurance companies (Sanlam, Liberty, Old Mutual, Momentum) will force you to use one of their brokers at enormous cost (+- 20% of your eventual retirement investment will go to the broker.)
Stay away from insurers for investments.
Have a look at Sygnia.
Quentin Legend
Well-Known Member
Depending on the advisor, ongoing advice fee can range from 0%-1%, some advisors are charging 1% which is absurd.