Transfer provident to RA or Preservatio Fund or Unit Trust?

[deekay]

I am leaving my job end of the month and have a bit (about 140K) in my provident fund currently and going contracting.

I'm looking at putting it into a low cost RA or Preservation Fund or Unit Trust (any other options?) and not to cash it in.

What are the advantages/disadvantages of each one?

I don't think I would want to withdraw any cash now but looking at a low cost investment vehicle where I don't get penalised (such as 10X or Sygnia RA).

If I put transfer the money into a unit trust will I penalised at all or is it only if it goes into the preservation fund / RA that it is not penalised?

 

[Dubes]

With the basic information provided, and without risking providing conclusive advice without a full analysis of your finances, I'd suggest the Preserver based on the fact that it is a provident fund.

A provident fund allows full access to the fund value at retirement. An RA limits your lump sum access to 1/3rd.

I'd suggest a retirement vehicle due to the preferential tax within those funds as well as the tax on withdrawal.

But an advisor would best be able to advise you...

 

[Dubes]

Investing in a unit trust will result in tax being payable. A transfer into an RA or Preserver will be tax free.