zerocool2009
Honorary Master
It means you stop contributing. As simple as that.
And that fees will eat it up in time
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Why I don't trust RA's
- Thread starter Cius
- Start date
It means you stop contributing. As simple as that.
And that fees will eat it up in time
Depends if its an insurance based RA then that is true about fees but once again the fees may be minimal because you may be near retirement age (less than 10years) because only at this stage or retirement age will you be able to access the RA capital. If it's a unitised RA, then no significant fees will accrue to you. These fees should be easily covered by the returns over the remaining RA period.
zerocool2009
Honorary Master
Well, insurance based or not. I made triple sure my preservation fund and paid up RA are for “free”. As I choose a % to be interest earning funds. So the interest I earn substitutes the fees, if I can say that. So it actually grows within the product
But what you saying, even at 0.50% and no additional add-on’s, they will sell monthly shares for fees.
Speedster
Honorary Master
That makes no sense. I contribute to my RA on an ad-hoc basis. Some years quite a bit, others nothing. Returns far outstrip fees whether I contribute or not.
backstreetboy
Honorary Master
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He never makes any sense lol.
zerocool2009
Honorary Master
Do a section 14 to AllanGrey (and they will tell you, you cant put 1 more sent into that moved RA).
Or rather, just email them and ask.
zerocool2009
Honorary Master
Did your phone start to recognize your lousy face yet?
Speedster
Honorary Master
I'm with Allan Gray already. And, as I said, I contribute as the budget allows. No issues.Do a section 14 to AllanGrey (and they will tell you, you cant put 1 more sent into that moved RA).
Or rather, just email them and ask.
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zerocool2009
Honorary Master
Did you start that from scratch or did you move an existing RA to AllanGay?
I can bet you, you started it from 0c upwards, as in new. Correct or wrong?
zerocool2009
Honorary Master
Let me explain it again.
If you do a section 14, as in move your RA from X to Y, some Y firms say you can sign a new debit order onto the moved RA.
As far as I know, example, Sygnia you can add more money to a moved RA. With AllanGrey not.
If you do a section 14, as in move your RA from X to Y, some Y firms say you can sign a new debit order onto the moved RA.
As far as I know, example, Sygnia you can add more money to a moved RA. With AllanGrey not.
SauRoNZA
Honorary Master
You don’t need to contribute more, just make sure the growth is real and not being eaten by fees.
As in don’t take their word for it, work out the input vs output yourself and make sure it’s growing like you think it is.
Many of these “products” eat half the contribution as the debit order goes off and the quote growth on the fund itself, not your own balance after costs.
SauRoNZA
Honorary Master
Because you have a real investment RA with a real investment company the fees come off the top.
These products will take your debit order and slash multiple hundreds of rands off it in bullshit fees, meaning less goes into the pot and end of the day the actual performance of the underlying fund is eaten by management fees and other kak.
So as long as you are sure yours is good then it’s fine, but many are shocking and sneaky with their reporting.
Liberty, Old Mutual…basically any insurance company also selling “investment” products, especially the ones who force advisors on you who also take a cut.
Allan Grey, Sygnia, 10X are all good and a few others. I would say any company who has their own name on the investment product and isn’t re-selling someone else’s because then it’s obvious the middle man gets his coin too.
SauRoNZA
Honorary Master
Probably not an RA but a Pension or Preservation fund.
Those are three different things and you can’t blend them.
Speedster
Honorary Master
Yes, I know about the old school, high fee RAs. My question was what it means when an RA is paid up?
SauRoNZA
Honorary Master
I believe with these particular kinds of products you essentially paid them up to a pre-defined date when you planned to retire and contributions and escalations would then be pre-calculated as well and almost like a reverse home loan it’s then paid off and secured.
Whether it keeps growing without inducing more fees is the part I’m not sure of.
In the old days these were all timed contracts as the ad-hoc setups we have now didn’t exist.
They could also hammer you with penalties if you ever stopped paying. I had to wait multiple years before I could transfer my money out of Old Mutual’s crap without penalty.
Terrible terrible products.
SauRoNZA
Honorary Master
Jeez I remember that but for the life of me can’t be sure who it was now.
I want to say it was that Wizardof something or another guy but not sure.
SauRoNZA
Honorary Master
Stay the hell away from babies for this.
Go to a real investment company like 10X or Sygnia.
You want a Section 14 transfer.
Sideshow Bob
Honorary Master
Why so ? I know some IT devs there so would like a different perspective.
SauRoNZA
Honorary Master
I mean the fact their website is utterly useless means maybe you should have a word with those guys.
They are at least a real investment company but also very old school with financial advisors forced on you etc.
Had a pension with them many years ago and it did well enough, but the service I got when moving it to a new company meant I’ll never consider them again.
Sideshow Bob
Honorary Master
Yeah - very old school. IT devs I know there don't work on web site but on software that would eliminate lot of manual work in the background. Let us see.