Retirement options

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NBC

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Looking for retirement investment options. Having a look at all options I can find, but I'm not a financial guru and don't understand all the technical terms.

Does anyone have any recommendation(s) of what I should be looking at? I am 41 and am basically starting fresh - poor career choices, but now with great company in a fantastic position, with great opportunities. I want to save something apart from company benefits as if I have none, so completely separate.

Any advice or recommendations will be very welcome!

I am talking to a financial adviser as well, but they don't specialize in a broad spectrum of products, only a few companies.
 
So contributing 15% of gross salary to a work fund?

If it was me, I'd look at then putting another 12.5% of gross income into a Retirement Annuity, either with 10x or Sygnia (never with any Life Insurer like Old Mutual, Liberty or Sanlam). You'll get money back from the tax benefit you'll get.
 
I would say get yourself a RA from 10X and put as much as possible into it. At 41 you will need to add a lot into it monthly to build up a substantial enough portfolio for retirement.
 
Gamer said:
What made you choose 10X vs Sygnia if you don't mind?
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You will probably facepalm after reading my reasons.

* For some reason I misunderstood Sygnia's documentation and thought I had to start with a 20k lump sum, but I think that's just if you plan on dropping a lump sum instead of contributing monthly. My misunderstanding was a huge part in my decision
* I liked 10x's sign up process
* I liked 10x's website
* I read a ton of RA threads on myBB, and a lot of people recommended 10x

I was hesitating a lot near the end, and eventually just decided to go 10x, I might move to Sygnia in the future.
 
mr_norris said:
You will probably facepalm after reading my reasons.

* For some reason I misunderstood Sygnia's documentation and thought I had to start with a 20k lump sum, but I think that's just if you plan on dropping a lump sum instead of contributing monthly. My misunderstanding was a huge part in my decision
* I liked 10x's sign up process
* I liked 10x's website
* I read a ton of RA threads on myBB, and a lot of people recommended 10x

I was hesitating a lot near the end, and eventually just decided to go 10x, I might move to Sygnia in the future.
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Hehe, not at all, all this stuff is a bit of a minefield maze for folk like me that are not clued up, so I'm wading through and trying to figure out stuff, I imagine similar to you. The lump sum vs monthly thing also had me fooled ;)
Thanks.

backstreetboy said:
https://twitter.com/x/status/1144183474250608640

Lol poor form AG.
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Ouch, I've got some money in the AG equity fund and am not entirely happy with some of the fees, pity I'm only paying closer attention now.
 
I was in more or less the same situation as you - ended up starting with 15% into an R.A. with 10x (sygnia wasn't really on the map at the time). I chose them for their transparency, the low fees and the outstanding customer service. And of course as a dev, them having a good website helped!

Over time I've increased it to 20%, plus then having 2.5% in a group life scheme and also what is now a 5 yr investment in shares for fixed monthly amount (satrix top 40 - for what it's worth, barely kept up with inflation so I switched to S&P500).

On top of this I'm just doing my best to spend less and save more.
 
donal said:
plus then having 2.5% in a group life scheme
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What is the benefit of doing this over just investing in the Satrix Top 40 / S&P 500 through Easy Equities or previously Satrix themselves? TIL something called Group Life Schemes are a thing :D
 
I'd consider a discretionary investment or TFSA mostly in offshore assets. STXWD for example. Retirement annuities are all good and well but they're limited to 30% exposure to offshore stuff, i.e. 70% must still be here in SA.
 
Wow, thank you everyone for your contributions and advice, I really do appreciate it! A new world has opened up and Sygnia and S&P 500 sound like the top contenders. I will most definitely look at them first then, and keep saving. I am ready to put in 20% to start (thanks Donal), and have spare cash to save or invest as well after my monthly budget has bee deducted.

Thank again everyone, I will keep monitoring this thread. Our power is going out, so cheers for now, update to follow.
 
newby_investor said:
I'd consider a discretionary investment or TFSA mostly in offshore assets. STXWD for example. Retirement annuities are all good and well but they're limited to 30% exposure to offshore stuff, i.e. 70% must still be here in SA.
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They money you get back monthly or yearly makes up for it. Also there's this:

https://www.moneyweb.co.za/investing/the-jse-is-not-an-outlier/
Smartie-box.png
 
newby_investor said:
I'd consider a discretionary investment or TFSA mostly in offshore assets. STXWD for example. Retirement annuities are all good and well but they're limited to 30% exposure to offshore stuff, i.e. 70% must still be here in SA.
Click to expand...

Here I was explaining RA tax benefit to someone in another thread:

supersunbird said:
You basically get back whatever % your personal income tax rate is of the amount you contribute.

If you earn R200 000 a year and you contribute nothing to retirement savings and your income tax rate is 20%, your tax is going to be R40 000 and you take R160 000 home.

If you earn R200 000 a year and you contribute 20% (R40 000) to retirement savings and your income tax rate is 20%, your tax is going to be R32 000 (20% of R160 000) and you take R128 000 home (and you'll have R40 000 invested, so R168 000 up in total). The R8000 you will get back at e-filing time (or don't have to pay to SARS if tax deducted correctly monthly), R8000 is 20% of R40 000.

That's R8000 you can use for your TFSA or whatever.
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So say you are the first guy and you contribute R40 000 to a TFSA in S&P500 (I'm ignoring the yearly limit), you'd have R120 000 to spend in the year, and R40 000 saved up.

Now if you are the second guy and save R40 000 in a retirement fund and R8000 in a TFSA in S&P500, you'd have R120 000 to spend in the year, and R48 000 saved up.

The first guys TFSA would have to give 20% growth over the next year just to catch up with second guys initial savings, which will probably also grow in the meantime (he has R8000 in that same TFSA after all. The tax benefit is actually pretty hard to beat.
 
supersunbird said:
Here I was explaining RA tax benefit to someone in another thread:



So say you are the first guy and you contribute R40 000 to a TFSA in S&P500 (I'm ignoring the yearly limit), you'd have R120 000 to spend in the year, and R40 000 saved up.

Now if you are the second guy and save R40 000 in a retirement fund and R8000 in a TFSA in S&P500, you'd have R120 000 to spend in the year, and R48 000 saved up.

The first guys TFSA would have to give 20% growth over the next year just to catch up with second guys initial savings, which will probably also grow in the meantime (he has R8000 in that same TFSA after all. The tax benefit is actually pretty hard to beat.
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True, but you'll pay taxes when you start withdrawing.

Over many years, better returns on a TFSA heavily stacked with international assets will probably do better after tax than your living annuity pension income.
 
NBC said:
have spare cash to save or invest as well after my monthly budget has bee deducted .
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Just an additional FYI - it also helped me to adopt the mindset of 'Pay yourself first' - i.e. you put away everything that is aimed at benefiting you/ your savings FIRST - then attend to your budget. It can be tough sometimes, especially when realising that there ain't much left over for your budget!! But this forces you to address it by adjusting your budget accordingly, not your savings and investments.
 
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