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Private pension question?

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asylum
Super Contributor
I was wondering if its possible to move a private pension from one company to another one, i have a private pension with liberty life and it seems that every month i pay but the pension figure gets lower and lower.Its a RA.
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20 REPLIES 20
Shard
Super Contributor
Did a financial adviser sell this to you?
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asylum
Super Contributor
no, but what difference does that make?
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3JN2
Frequent Contributor
Yes you can move it but what matters is not the company but the investment portfolio that your R/A is invested in. If it's invested in equities then you are going to see your investment going up and down with the market. You need to first determine your risk profile - aggressive, moderate or conservative to deceide if you want the swings of the stock market or sometging more stable.. I like to place 50% in the property portfolio. Returns not fantastic but stable year after year. Note this portfolio is shopping centres etc not property shares on JSE. Then accordiong to your needs, look at say Top40 index for equities, interest bearing portfolio if that is what you need, even money market portfolio if appropiate. Liberty Life have portfolios that enable you to invest in other companies. So you can place a portion or all of your investment with another company - but if so take care that you know exactly what that portfolio is composed of.
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Shard
Super Contributor
Because the first thin I would check is what sort of fees are coming off, were the money is invested etc. You can move your RA to another RA yes, but just because its at liberty doesn't mean that it invested in Liberty. Liberty is just the Life Company. For Example I have an Allan Gray RA, but its invested in Coronation, Foord and RMB. Allan Gray Life is just the platform I use to invest. So you should be able to change what your RA is invested in, the only benefit from moving Life company would come from getting better fees and maybe a better selection of funds.
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katvis
Not applicable
if you dont even know how your pension / ra work how can you be on OST . I can only laugh.
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stores
Super Contributor
X... How does yours work..I worked for 35 years in a corporate and until I retired I did not know 1000%...(had some idea but trusted the company I worked for)...I know now though.
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stores
Super Contributor
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Fredsed
Super Contributor
My experience with LL, and an RA that changed hands 5 times in 25 years only to finish up with them, was not happy from the first unexpected and unapproved (by me) change. I was given abysmal treatment by very arrogant persons all along the misbegotten way and finally at LL. However, things can be much worse than LL, I have the painful scars from the Fedsure scumbags. You have no friends in the retirement annuity scam business; all such schemes are simply scams from scheming scum. Be polite, patient and take whatever is left of your money. The alternative can and will be even more painful. The rules are theirs, not yours. So don't fight for some missing money, because there may actually not be any at all if they choose to make it so. Morality is a figment, a misnomer, a concept that simply does not exist in the real world.
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Not applicable
I used to sell StanLib RAs. Often your RA will be in a linked product - that is you can have unit trusts from other companies in your RA. All you have to do in this case is decide what unit trusts you want in your RA. Not much point in changing to another company if you can get the unit trusts you want. I often stay with one company eg Stanlib has a wide variety of unit trusts from conservative to aggressive. You can choose something like dynamic floor for a more conservative approach, etc. Often your advisor will give you a good selection for your needs
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asylum
Super Contributor
Katvis get a life you, if you have nothing usefull to say butt out.
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Shard
Super Contributor
Katvis, first post ever on the forum trying to be a smartass, no one likes a smartass.
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Not applicable
And KATVIS pse bear in mind these forum guys are kinda polite guys. Maybe they have let you off lightly. Re the blow off about some of these investment guys, I was caught in the Ovation debacle. I need say no more. If you do not watch it these investment guys will fleece you and where is the FSB.Jangat
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Not applicable
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warhippo
Super Contributor
EddieM, what was your experience when you were involved selling RA's that invested in Unit trusts as far as the cost's to your investors were concerned? Could they still negotiate the costs? or was it fixed?. I just find the costs of the Unit Trusts so high and surely it is going to eat big time at your pension growth? Just a question and also an opinion.
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Not applicable
You sur could negotiate costs. Often the financial adviser would take 3% initial and then 0.5% per year. For the 0.5% h/she was supposed to look after you. Sometimes advisers have so many clients they cannot switch them all should it be advisable. Many adopt the philosophy that it is a long term investment and people should not switch (or do it very selom) I always looked after my own investments and there is truth in the idea that if you switch too often you often end up worse off.
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Shard
Super Contributor
From what I've seen. Initial investement fee is anything from 0-5%, that means if you set a debit order to go off every month for R2000 and you get stuck with a 5%, you're paying R100 per month to a "financial adviser" you'll probably never see again. Management fee (Adviser's management fee) of between 0-2%, this is before the fee of the management company and expenses on the unit trust. You can really get ripped off for advice from someone who really has no idea how to invest for your retirement. In general financial advisers have just been taught how to do an Asset Allocation based on your Risk Profile and Retirement Funding needs, they dont really pay attention to markets or do due diligence on the managers whose products they dish out.
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Not applicable
Hi. You may transfer your Slippery Life RA to another Company (i.e: Allan Gray), however just check out the related penalties that Slippery Life will charege you as this will certainly reduce the amount transferred.
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olilau
Frequent Contributor
hi asylum gotta agree with comments made by forumites on the PRODUCT you are invested in. i used to be prejudiced against LL because i paid into an endowment policy for 5 years and barely got out my capital 20 years ago. but our company prov fund is managed by LL and is not doing too badly all things considered. yes, the management company is important to a degree but if you are with one of the top 4, its comparable to whether you bank with STD, FNB, ABSA, INVESTEC. the product, and by definition, degree of agression, whether its single or multi manager etc all play much more important a role. there are indexes out there that rank service providers by performance. make sure that performance is measured over at least 10 years, preferably more. i am not sure exactly how it works, but i know that our LL multi manager product actually uses allan gray, oasis etc.
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Antonofafrica
Contributor
Hi Asylum - You can contact any LISP and get them to process a Section 14 transfer for you. You can choose whether to get an adviser involved or not. Allan Gray offer very low admin charges where Momentum Wealth allows you to but any share in the top 40 - higher admin fees but no fund manager fees. Options are endless. Email a statement to me at [email protected] and I will be able to give you a charges breakdown on your current RA.
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