Sanlam Echo Bonus RA

Just to add to the discussion; I have had two financial advisors tell me what a great product the Sanlam Echo Bonus is because of the wealth bonus. I told one of them I suspect that one funds their own bonus via the fees, and she was adamant that this is not the case (and mentioned something about this being the case with Discovery). When I asked the other advisor about where the bonus supposedly comes from, he didn't really give me a straight answer and said something about Sanlam dominating such a huge chunk of the market and that's why they can do it (as if Sanlam are just going to give away money for free) :laugh: When I spoke to him again and mentioned the high fees, he suddenly agreed that the bonus must come from the fees. Why not just say so at the start?

How do these "advisors" sleep at night knowing they are not being transparent about the product they are selling :oops:
 
jUgg3rnAutZA said:
Just to add to the discussion; I have had two financial advisors tell me what a great product the Sanlam Echo Bonus is because of the wealth bonus. I told one of them I suspect that one funds their own bonus via the fees, and she was adamant that this is not the case (and mentioned something about this being the case with Discovery). When I asked the other advisor about where the bonus supposedly comes from, he didn't really give me a straight answer and said something about Sanlam dominating such a huge chunk of the market and that's why they can do it (as if Sanlam are just going to give away money for free) :laugh: When I spoke to him again and mentioned the high fees, he suddenly agreed that the bonus must come from the fees. Why not just say so at the start?

How do these "advisors" sleep at night knowing they are not being transparent about the product they are selling :oops:
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Like babies with full bank accounts.
 
jUgg3rnAutZA said:
Just to add to the discussion; I have had two financial advisors tell me what a great product the Sanlam Echo Bonus is because of the wealth bonus. I told one of them I suspect that one funds their own bonus via the fees, and she was adamant that this is not the case (and mentioned something about this being the case with Discovery). When I asked the other advisor about where the bonus supposedly comes from, he didn't really give me a straight answer and said something about Sanlam dominating such a huge chunk of the market and that's why they can do it (as if Sanlam are just going to give away money for free) :laugh: When I spoke to him again and mentioned the high fees, he suddenly agreed that the bonus must come from the fees. Why not just say so at the start?

How do these "advisors" sleep at night knowing they are not being transparent about the product they are selling :oops:
Click to expand...

Part of the high fees are what pays their salary/bonus/commission, and incentivises them to sell that product.

Also, the bonus is now a hidden penalty, in the old days you paid a hefty penalty when making changes like reducing or stopping RA contributions, now the bonus amount severely reduces in such events.
 
There are way more than just the bonus and high fees that makes these products crap!

Anyone with an existing product, if you topped up, you are in for a rude surprise. (Your fees doubled)!
 
jUgg3rnAutZA said:
Just to add to the discussion; I have had two financial advisors tell me what a great product the Sanlam Echo Bonus is because of the wealth bonus. I told one of them I suspect that one funds their own bonus via the fees, and she was adamant that this is not the case (and mentioned something about this being the case with Discovery). When I asked the other advisor about where the bonus supposedly comes from, he didn't really give me a straight answer and said something about Sanlam dominating such a huge chunk of the market and that's why they can do it (as if Sanlam are just going to give away money for free) When I spoke to him again and mentioned the high fees, he suddenly agreed that the bonus must come from the fees. Why not just say so at the start?

How do these "advisors" sleep at night knowing they are not being transparent about the product they are selling :oops:
Click to expand...

To be fair to some advisors....

I've seen insurance companies target desperate young graduates in mass recruitment drives. They sell them false dreams about getting rich by joining prestigious JSE listed firms. Advisors are trained in house about these sham products.

Sure, you get many car salesmen type advisers too, but I would make the argument to say why are we putting the blame and onus on advisors?

The buck stops with the companies creating this trash, training their foot soldiers to force feed it to their customers in order to maximise their own profits. Vote with your wallet and stop doing business with Sanlam, Discovery, Momentum et al.
 
Tman* said:
The buck stops with the companies creating this trash, training their foot soldiers to force feed it to their customers in order to maximise their own profits. Vote with your wallet and stop doing business with Sanlam, Discovery, Momentum et al.
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Well, they can be good for insurance products, but these companies and investments (like retirement savings) should never mix.
 
Tman* said:
To be fair to some advisors....

I've seen insurance companies target desperate young graduates in mass recruitment drives. They sell them false dreams about getting rich by joining prestigious JSE listed firms. Advisors are trained in house about these sham products.

Sure, you get many car salesmen type advisers too, but I would make the argument to say why are we putting the blame and onus on advisors?

The buck stops with the companies creating this trash, training their foot soldiers to force feed it to their customers in order to maximise their own profits. Vote with your wallet and stop doing business with Sanlam, Discovery, Momentum et al.
Click to expand...

So true. Your sentence about false dreams… spot on. If your money dont work for you, then you are wasting money.

As a family member said to me once: he trusts his Liberty broker. He has a degree!



My reply on that, if your savings are worthless, don’t go knocking on their door. Its to late
 
TofuMofu said:
Sadly I can't move my Sanlam Pension...it's part of my work package, but I'm contributing the smallest amount they allow and have my own RA with 10X.
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I have been considering doing this. I can decrease my contribution to 2% which will increase my net salary, but my PAYE goes up considerably. I haven't done any calculations, but I assume if I were to invest this extra cash into an RA, the tax benefit at the end of the financial year would then make up for the extra PAYE.
 
Tman* said:
Sure, you get many car salesmen type advisers too, but I would make the argument to say why are we putting the blame and onus on advisors?
Click to expand...
Sadly, the advisors always get the blame, but I agree that it is the companies that are ultimately in control. And like all of us, financial advisors also need to earn a living and they are simply doing their jobs (morally correct or not). I'm sure there are many good advisors out there too.
 
jUgg3rnAutZA said:
I have been considering doing this. I can decrease my contribution to 2% which will increase my net salary, but my PAYE goes up considerably. I haven't done any calculations, but I assume if I were to invest this extra cash into an RA, the tax benefit at the end of the financial year would then make up for the extra PAYE.
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It will, the RA contributions will be calculated in your tax return and over tax returned to you.

My employer is with 10X so I am happy, in fact I am contributing 20%.
 
I moved my Sanlam to 10X in 2019. Paused it when Covid hit and forgot that I paused it. Checked the other day, it almost doubled since 2020 without any contributions. Previously with Sanlam, even with my contributions, I couldn't tell that there were growth.
10x all the way. Sygnia also good.
 
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