Sanlam Echo Bonus RA

[Sicilian-Najdorf]

Hi All
I've decided to open an RA - I've been reading some terrible stories about fees eating up very large portions of your savings.

I was approached by Sanlam to look at the Cumulus Echo Bonus offering.
Seems good to my limited knowledge on the matter - They add to your savings for nothing??
I am not familiar with this product or any product for that matter.

Has anyone dealt with this product before. Thoughts?
Any advice would be really appreciated.


Thanks

 

[backstreetboy]

Hi All
I've decided to open an RA - I've been reading some terrible stories about fees eating up very large portions of your savings.

I was approached by Sanlam to look at the Cumulus Echo Bonus offering.
Seems good to my limited knowledge on the matter - They add to your savings for nothing??
I am not familiar with this product or any product for that matter.

Has anyone dealt with this product before. Thoughts?
Any advice would be really appreciated.


Thanks

No you pay with fees. Nothing in life is for free.... Move on over to Sygnia and their great roboadvisor https://ra.sygnia.co.za/roboadvisor/robo-advisor. Cheap as chips fees at around 0.53% and a great Alchemy online portal where you can compare the 5 year performance of over 2000 funds. Not to mention a monthly Sygnals news rundown of the world financial news. There's also 10x etc.

 

[zerocool2009]

My advice, if you signed now recently and have a cool off period, step away! Look at sygnia!

I had friends with that same RA product! RUN !

 

[blah99]

As already said, go with Sygnia.

Stay away from Sanlam/Old Mutual/Discovery/Momentum.

 

[Tman*]

I had a RA with Sanlam.

When I moved it to another provider they charged me a fee to do so. SCUM

 

[Goosfrabba]

If I understand the Echo bonus correctly, the money they 'give' you is really just your own money since the fees are really high

 

[Alton Turner Blackwood]

Sygnia FTW

 

[TofuMofu]

Definitely don't go with Sanlam...their fees will eat your RA up! Sygnia/10x.co.za is my recommendation.

I personally use 10x.

 

[zerocool2009]

If I understand the Echo bonus correctly, the money they 'give' you is really just your own money since the fees are really high

Exactly! The Bonus’s being promised is coming from high fees, paid by you

 

[Sicilian-Najdorf]

Thanks all
That's a unanimous dislike
Why are they and others like them so popular?

 

[zerocool2009]

Thanks all
That's a unanimous dislike
Why are they and others like them so popular?

Because people trust their money with brokers (who is getting huge commission), thinking they are on good hands

 

[Sicilian-Najdorf]

Because people trust their money with brokers (who is getting huge commission), thinking they are on good hands

Thanks
For someone like me who has never heard of Sygnia until a month or so ago (Invested in 4IR) based on some advice from someone on MyBB. I can understand why people would go with Sanlam and the like...

I'm not being dramatic or anything but will companies like Sygnia or 10x be around when I retire in 25 years since I and lots like me have never heard of them?

 

[TofuMofu]

Thanks
For someone like me who has never heard of Sygnia until a month or so ago (Invested in 4IR) based on some advice from someone on MyBB. I can understand why people would go with Sanlam and the like...

I'm not being dramatic or anything but will companies like Sygnia or 10x be around when I retire in 25 years since I and lots like me have never heard of them?

Of course they will. They are large companies on their own.

 

[Sicilian-Najdorf]

I found this from an article written in 2018



Does this only apply to the Skeleton range?

 

[mr_norris]

Came here to also recommend Sygnia but I am not with them. I am with 10x because the Sygnia forms confused me and I misunderstood something with the minimum amount way back when. 10x is great, but they do cost a tiny bit more. They are the second best in terms of fees (with the amount I have invested anyway).

 

[Mr Smooth]

I had the exact same RA with Sanlam. My fees for 2020 would’ve been over R10000 had I not moved. Thanks to @zerocool2009 for making me aware to check my fees.

Moved over to Sygnia Skeleton 70 and have not looked back.

 

[zerocool2009]

Skeleton 70 (Sygnia), you cant go wrong!

 

[LostGoat]

What I find weird about Sanlam Echo is if you look at their home page where they have their marketing material. They say if you investment R1000 a month (increased at 5% annually) for 25 years at 10% return you get the following:
Total Payment: 572 730
Investment Return: 448 070
Echo Bonus: 449 150
Total Value: 1 469 950

If you put the same figures into a compound calculator you get 1 883 037. So even after their 450k echo bonus you would have paid them 413k in fees. So yes they give you bonus which sounds great but you are paying for it and more somewhere.

I generally follow the logic if I cannot understand how the investment works in a few minutes chances are they are hiding something and I will pass on it.

 

[zerocool2009]

I was at Discovery! Asked a qoute on from Momentum, they worked on the same principle

If you look at any basic RA contract, with a clause, do a section 14 (a on month 1 to 60 pay penalties)... then you know (crappy product)