Retirement Fund Advice

SauRoNZA said:
Who is managing it? Are they stealing most of the money in "costs" with almost no return?

The discipline of putting it away even with low returns still beats not putting anything at all away though.
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been putting away for 10yrs now, liberty life i think, cant remember. In 18yrs time it pays out R800k. I put in about R3k a month, maybe more, cant remember what the payslip says, might even be R5k
LOL
 
Chuckmyster said:
been putting away for 10yrs now, liberty life i think, cant remember. In 18yrs time it pays out R800k. I put in about R3k a month, maybe more, cant remember what the payslip says, might even be R5k
LOL
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And there is the problem...

Get the hell out as soon as you can.

Start by asking for a detailed cost breakdown and notice how you don't get one and you'll know you are in trouble. If you do actually get some sort of detailed transaction history through a web portal or something note how much you put in every month and how much disappear in costs BEFORE even being invested.
 
SauRoNZA said:
And there is the problem...

Get the hell out as soon as you can.

Start by asking for a detailed cost breakdown and notice how you don't get one and you'll know you are in trouble. If you do actually get some sort of detailed transaction history through a web portal or something note how much you put in every month and how much disappear in costs BEFORE even being invested.
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i dont think we have a choice, as company also pays a portion. Something like that, this is a topic i know less than zero about :ROFL::laugh:
 
Chuckmyster said:
i dont think we have a choice, as company also pays a portion. Something like that, this is a topic i know less than zero about :ROFL::laugh:
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You might be forced to invest in it, but you can usually choose how much.

So you could make it 5% and then take the rest of the money and invest it yourself and save your own retirement.

I do believe they are a little bit better in a "company packaged" format but also can't say for sure.
 
SauRoNZA said:
They don't have an "interest rate".

They have a historical investment return though which isn't really a projection of future performance but is a guideline of sorts.
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on their website it shows 10.2% after fees for the last 10 years.

supersunbird said:
10X for 2018 :crying::

View attachment 603856

First since I started in 2013 that it's negative, and it's not like the managed fund providers did much better.
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but this worries me, whereas a fixed deposit is guaranteed.

Please take note this is just a small fund and will not be my main retirement fund, i am by no means saying i want to only have a fixed deposit as a retirement plan.
 
So, my provident fund finally got transferred into the preservation fund on 7th March. It is now 5 days later and i decided to go online and check only to see this(Gross investment return redacted, its a negative percentage though:

Capture.PNG
tempsnip.png

This while i get a steady 7.15% on my Savings account at the bank.
 
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Zuner said:
So, my provident fund finally got transferred into the preservation fund on 7th March. It is now 5 days later and i decided to go online and check only to see this(Gross investment return redacted, its a negative number though:

View attachment 632534
View attachment 632536

This while i get a steady 7.15% on my Savings account at the bank.
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This is a pitfall you must try to avoid. Your investment term is decades. Check on it once a year max.
 
AlmightyBender said:
This is a pitfall you must try to avoid. Your investment term is decades. Check on it once a year max.
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That's going to be tough, i always check on my funds/accounts, I need to be sure they're doing what they must be, i hate realizing down the line that i should've done something.
But i do understand what you're saying, if all goes how it should my investment term will be another 36 years.
 
To elaborate more you don't know what will happen in 15 years or even three years. Could get a much higher return than money market over that term. But if you not in the market then you miss out.

In fact the entire history of the markets have shown this to be the case. @supersunbird back me up on this point.
 
Zuner said:
That's going to be tough, i always check on my funds/accounts, I need to be sure they're doing what they must be, i hate realizing down the line that i should've done something.
But i do understand what you're saying, if all goes how it should my investment term will be another 36 years.
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Yep it is very tough, I can relate. My perspective changed after reading an article in Personal Finance magazine that showed the less you check your investments the greater the returns you receive all things equal and over a very long time frame.

Ignorance is bliss in this case bizarrely. And leads to better decision making in the long term.
 
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