Sanlam RA

[whatwhat]

One of my RAs is with Sanlam, one of their legacy offerings that was started in 2001.

Its set to "moderate", however I want to change it to something more aggressive in terms of the underlying investments. They say I can't do it since its legacy, so what are my options? Do you upgrade to one of their current packages, is there any penalty for that since I assume it's a change of contract?

I remember there was some change with RAs a few years ago, in terms of what you could do and not do in terms of specifying the funds.

They aren't really helpful with anything.

 

[R13...]

If you move from Sanlam you will certainly incur penalties for the fees they would have earned over the remaining term. I wonder if you incur the same if you move the RA to a newer Sanlam product.

 

[supersunbird]

One of my RAs is with Sanlam, one of their legacy offerings that was started in 2001.

Its set to "moderate", however I want to change it to something more aggressive in terms of the underlying investments. They say I can't do it since its legacy, so what are my options? Do you upgrade to one of their current packages, is there any penalty for that since I assume it's a change of contract?

I remember there was some change with RAs a few years ago, in terms of what you could do and not do in terms of specifying the funds.

They aren't really helpful with anything.

You can be charged a penalty of up to 30% (they call it a causal change) on such a "life" (old school) RA taken before 2009. You have to decide if it worth the hit or not or just continuing as it is.

The new unit trust RAs you can specify underlying funds that's available (differs per provider) and stop and start without penalties.

 

[whatwhat]

So they gave me the option to upgrade from the legacy product to one of their newer products, without any penalties.
However they say that there might be a loss of cover, and market adjustments to the value that gets moved.

What would be the benefit of keeping it in the old legacy product vs upgrading it to one of their newer products?

 

[supersunbird]

So they gave me the option to upgrade from the legacy product to one of their newer products, without any penalties.
However they say that there might be a loss of cover, and market adjustments to the value that gets moved.

What would be the benefit of keeping it in the old legacy product vs upgrading it to one of their newer products?

Loss of cover? The only cover could be life insurance, I'd think...

Anyway, it's something at least.

*spits on old school RAs*

 

[whatwhat]

*spits on old school RAs*

Just curious how come?

Also, looking around it seems that upgrading to the Sanlam newer RA you still pay a penalty if you move it to another RA. I just wonder if that penalty is more or less than just doing the transfer out of the old one directly.

 

[supersunbird]

Just curious how come?

Also, looking around it seems that upgrading to the Sanlam newer RA you still pay a penalty if you move it to another RA. I just wonder if that penalty is more or less than just doing the transfer out of the old one directly.

The excessive penalties fees charged because things like retrenchment can happen (and thus one can't meet the contract and thus big penalty), the whole fee structure for "advisors" that encouraged the hard sell of these products, their expense and poor performance (mention an RA and old people while go on about how theirs grew poorly and such and how its a scam and useless), the providers themselves, still not always complying with that maximum penalty agreement they reached (charging double penalties and such).

Still, at least you should now be in a better position, and that's good.