So, you’ve started taking an interest in your own personal finance, and either decided to start investing for your retirement by means of a retirement annuity, or you’ve been invested for a while in a RA, but you are not really happy to see how it performed over the past couple of years. You are now exploring all the different options available on the market whilst trying to navigate the absolute maze and spider web that is retirement annuities in South Africa.
If this is you, then this video will definitely be worth watching. I am going to strip down all the confusion and intricacies that are involved with RA’s, break them down into the simple parts that you need to understand and consider when taking out a RA and then compare the 4 best and cheapest RA options that are currently available on the market in South Africa so that you can make an informed decision. Guys. The decision you make in which retirement product you invest your lifetime savings can literally make or lose you millions of rands! So please take this seriously and watch this video all the way to the end as this will arguably be the most important financial decision you make in your whole life!
When it comes to investments, there are MANY things that are completely out of our control. But the few things that we do have control over, such as which funds we choose to invest in and how much we are willing to pay, can literally make or break millions of rands in the long run. And when considering that RA’s are all limited under Regulation 28, meaning their returns will be more or less the same over the long run, the only thing you really need to worry about is the fees.
You really can’t go wrong with any of these providers mentioned in this video. So spend some time to audit your own RA, compare that to what is available on the market, get professional help, and make an informed decision. Your future self will definitely thank you for it!
Here is a breakdown of the info covered in this video:
00:00 Introduction
01:22 Why You Should Care – Effect Of Fees On Your RA
04:02 Similarities Between All These RA’s
07:46 10X Investments
11:55 Sygnia
16:08 Easy Equities
18:43 OUTvest
22:09 The Winner?
24:44 Should You Move Your RA?
26:52 How To Move Your RA?
27:55 Take Home Message
Here is a list of the links mentioned in this video:
10X Investments:
Sygnia:
Easy Equities:
OUTvest:
Calculator to see what effect fees have on your investments:
Calculator to see if it will make sense to switch your RA:
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#PersonalFinance #Entrepreneurship #Investing
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Who am I? My name is Pieter Marx de Villiers and I’m just an ordinary guy from South Africa who aims to retire by the age of 35 years. Follow me in my journey towards Financial Freedom in (hopefully) just a 10 year period! 🙂
This channel will aim to help you achieve your personal financial goals through the things I’ve learned (mostly through my own mistakes) and researched to improve my own financial health.
If you enjoy the content and find any value in my videos, consider subscribing and help me reach my goal for 2021 by reaching 10 000 subscribers on YouTube!
Lekker!
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DISCLAIMER
I am not a financial advisor. The content on this YouTube channel is only for educational purposes and should not be taken for financial advice. You and only you are responsible for your financial decisions and must therefore conduct your own research and seek the advice of a licensed financial advisor if necessary.
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LEARN MORE ABOUT: Retirement Annuities
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Hey guys, thanks for watching! Just one small correction, the OutAggressive Fund from OutVest is not Regulation 28 compliant, as it invests more than 30% offshore, sorry about that. The best fund from OutVest for a RA will thus be the OutModerate Index Fund, so just keep this in mind when comparing all your options 🙂
Brilliant content as usual Pieter. I'm really glad that you see the need to say what you are doing and why. Just a note to some of your readers hesitant to move RA providers due to penalties etc. If they have a fairly long time horizon it most probably will be prudent to pay the penalties and move as the better returns and lower costs far outweigh these in the long run. However if someone is 55yrs or older you are allowed to convert the RA to a LA in which case you can still change service providers. There are some providers who will still want to impose penalties but this needs to be challenged.
BTW I have RAs with two of the providers you mention for about 9yrs now and not at all surprised by your findings. It is really great to find someone who says it like it is and not a load of generic theory with the standard response to see your "trusted" financial advisor.
My personal view for what it's worth is that you've cut out most of the noise for anyone wanting to take out an RA.
You doing a great job….. I'm currently catching up…. You really simply investments.
How Reliable is Outvest for RA?
Thank you so much this was very informative but you didn't mention contribution amount for Outvest.
Pieter, thank you do much for your videos they have been really helpful to my fincial journey and trying to figure out what the future holds. I am a freelance Actress in the Theatre business and I really wanna start working on my RA this year and I've signed up with Sygnia but am yet to deposit that initial R20000, hoping to do so before the year ends as I've been working on maxing out my TFSA first. I was wondering if you would be able to please do a step by step video on how to get to the fund that you're talking about on the Sygnia Alchemy sight because I'm only getting the option of applying for an RA but not that specific Skeleton Balanced 70 fund.
Hi, I have two issues. One, isn't the period for a tax free investment capped.. Surely standard bank cannot let your R500k grow forever at their expense.. Two, this is for RA – I know exactly how money grows in a tax free, but i don't know how money grows in an RA. Do you get the same money we put in when it comes to RA, or there is some interest grows? Questions..
thanks. awesome information
Hey , what’s the minimum contribution with Outvest?
Thank you for your content
Great videos , been looking at RA's and you should check out the recently launched FNB core balanced fund, would be interesting to hear your thoughts I cant find a eac but their tic is 0.39% with a annual of 0.30%
What a great video!!!
Thank you so much
Thank you for creating this type of content
Hey Marx what do you think of Allan Gray RA
You're doing the Lord's work
Hi Pieter. I have a question regarding the Cumulus Echo RA from Sanlam. The EAC is quite high, but they offer something called a "wealth bonus". Do you think the high EAC is worth it if you consider the wealth bonus?
thank you for doing the research and sharing its fruits with us!
you champion !!
Legend!
very very helpful
This is good information. I just realized I have made a mistake with my RA and it is a very expensive mistake. Moving is the best option now. Thank you!
Hi. The OUTaggresive fund isn’t regulation 28 compliant? It allocates more than 30 % to offshore?
Hi, is it advisable to open a ra if you are employed on a contract basis?
Thank you so much
Please could you do a similar video for living annuities for the over 55's? I'm getting close to retirement and I don't want to compound the mistakes I've made with my RA's.
Excellent resource, thanks!
You've done your homework! Just a bit extra if I may. I invested with 10X for long time (RA), now on LA. To clear 1 complaint. 10X not showing fees with VAT – if they average 1 – 1.2% better growth than other three – adding VAT still leaves them no 1 on returns! As far as an app for comms – 10X login gives you all you need and updates on your investment anywhere/anytime on phone or pc. Also, you can (on login page) switch portfolio between low/med/high eq within 45secs! You will see result and "new" portfolio on your account within 2-3 days (I did!). 2 free switches per year.
Lastly – Outvest don't offer LA (you need to go somewhere else when u retire and Sygnia can only offer 30% of your investment (LA) offshore. 10X International portfolio (LA) beats them all.
Baie goeie vid, dankie!