Why I don't trust RA's

[Speedster]

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.

Did a Google search - it was stonemason.

@Stonemason, what do you make of this thread?

 

[cleanbreak]

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.

Sounds like your retirement fund was moved to a preservation fund. What's the first four letters of your account number...AGRA?

 

[Bliksis]

Did your phone start to recognize your lousy face yet?

Boom. That sure schooled him. Lmao.

 

[zerocool2009]

Probably not an RA but a Pension or Preservation fund.

Those are three different things and you can’t blend them.

I moved a Liberty RA away and moved the lump sum to AllanGrey.

Then they told me I need to start a new one. On that thought I then started one with Sygnia.

Asking them, can you move RA’s and still topup, and they said yes. So its all provider related.

Remember, I am taking purely RA’s here. Not mixing provident funds or preservation funds

 

[zerocool2009]

Yes, I know about the old school, high fee RAs. My question was what it means when an RA is paid up?

When you make something paid up -> not 1c going into the RA ever again. As in stop contributions. As simple as that

 

[Speedster]

When you make something paid up -> not 1c going into the RA ever again. As in stop contributions. As simple as that

Surely it's more than that? Why would ceasing to add to an RA change anything about the RA? Allan Gray has absolutely no insight into whether I will be making any further contributions so how do they know whether my RA is paid up or not?

 

[saturnz]

I'm sure I had alot to say about this a few years ago.

 

[zerocool2009]

Surely it's more than that? Why would ceasing to add to an RA change anything about the RA? Allan Gray has absolutely no insight into whether I will be making any further contributions so how do they know whether my RA is paid up or not?

Its as simple as that. You lock it in. Nothing more.

Again, I am saying it again. Its a section 14, moving a RA from one provider to the other. Not a newly started one. As I said, contact them, and ask “if you do you section 14 with a debit order, can that be done?”. And the answer is NO. With Sygnia, its allowed

 

[Stonemason]

Did a Google search - it was stonemason.

@Stonemason, what do you make of this thread?

Returns on every investment in South Africa has been dismal in the last 10 to 12 years.
I use RA's as part of a wider portfolio. Property, cash, unit trusts, shares etc.

RA's are very useful when at the end of the tax year you realise that you have earned too much that year and your tax liability is too high.Then you dump a large sum in an RA and your tax liability is reduced.

In my case RA's have always outperformed cash but not always other forms of investment. But, the beauty of an RA is that your investment do not lose value and at the end of it all, it contributes to your income when you retire.

See it as a way to manage your tax liability and as a defense against a complete market crash - something that is not impossible. It is a low risk investment.

 

[cleanbreak]

Again, I am saying it again. Its a section 14, moving a RA from one provider to the other. Not a newly started one. As I said, contact them, and ask “if you do you section 14 with a debit order, can that be done?”. And the answer is NO. With Sygnia, its allowed

You can add a debit order and/or make additional lumpsum payments into a Retirement Annuity which was transfered, in terms of section 14 of the Pension Funds Act, to Allan Gray.