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RA industry crooks

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SimonPB
Valued Contributor
ya we all know how bad they are, but the numbers are worse then even I would have figured ..
http://www.tickertalk.co.za/blog.php?user=SimonPB&blogentry_id=3899
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21 REPLIES 21
Not applicable
very interesting post, thanks
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Som2
Contributor
Interesting article, indeed. In fact it is scary.
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kwagga
Super Contributor
The RA industry is according to me a huge scam. Fat cat's doing very "passive" investments and scooping cream for over inflated salaries and "performance" bonuses. Honestly, it's become a big joke. If RA's didn't have any tax benifits the industry won't have any justification whatsoever.
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SimonPB
Valued Contributor
tax benefits are modest, save tax now (while you earning) to pay tax later when you are not earning ??
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kwagga
Super Contributor
The man in the street are solidly screwed on every front where he doesn't care venture.
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Blik
Super Contributor
only other bonus I can think of for a RA is that it is outside your estate, so your disgruntled wife, kids, family cannot claim it....but that is not too much to worry about in the greater scheme of things, if your wife is taking you to court.
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Not applicable
wrong, I think. There is a formula for dividing the proceeds of a pension and RA
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SimonPB
Valued Contributor
correct, but if liquidated it cannot be touched ..
what we want is self managed RA's ..
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kwagga
Super Contributor
Jip. Your spouse can put in a claim on your RA when divorce becomes an issue. No benefits there.
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Not applicable
I took out a RA the other day trough Allan Gray. According my broker they are the only ones that don't rob you completely blind. To me its merely a kind of insurance against myself in case I screw up my own investments. Plus, to me the tax benefits does seem to make it worth it if the costs are not as crazy as it used to be in the past. I don't know, the examples looks really scary and I had the same issue with my mother's RA and Sanlam with ridiculous fees witch we cant change due to the enormous cancellation fee.
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partridge
Super Contributor
Simon's sister is one of many and had she done this before the Trevor Mannuel "agreement" it would have been >30 - 40 %. The big picture is the need to save for retirement. There are numerous benefits for RA's, but clearly the "traditional"(Infamous ?)RA only benefitted a minority of investors - those who stayed the course - unaltered. And of course it benefitted the shareholders of the proprietory life companies - big time!! The primary purpose of a self standing pension fund like this is to set aside ( as in NxPxi) a MATCHED to increasing /declining income %age of your earnings for retirement. If you are not doing that there is always the Big Issue - and that will be because your life will exceed your money. Last thought. If you are not dealing with an adviser who charges fees for time as opposed to earning his /her money by selling you a product which pays commisison - and who ALSO does not charge you asset based fees on what you actually buy - then wake up.
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Blik
Super Contributor
So how come we have been sold such a lemon?
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klapka
Super Contributor
and you are all forgetting another JTC. One day this under performing RA will mature. Then one only has access to up to one third of the maturity value. The other two thirds must be used to purchase another policy, a compulsory annuity or a living annuity - on which one can pay more commission, annual investment and admin fees, monthly or annual debit fees to pay an annuity into ones bank account and if one is really stupid ANNUAL ADVICE FEES.
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klapka
Super Contributor
and you are all forgetting another JTC. One day this under performing RA will mature. Then one only has access to up to one third of the maturity value. The other two thirds must be used to purchase another policy, a compulsory annuity or a living annuity - on which one can pay more commission, annual investment and admin fees, monthly or annual debit fees to pay an annuity into ones bank account and if one is really stupid ANNUAL ADVICE FEES.
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Not applicable
Now we are talking. Self managed RA sounds like a plan.
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Not applicable
Lets say, If I forget about trading and I invest for a long term until my retirement age, How would I ensure that I do not get taxed. I will not be withdrawing money from that account
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Not applicable
Simon. Does SBK allow individuals to open up a secondary account?
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Not applicable
Though I will not be trading, I would like to sell a position when it is too ripe and buy at lows again. cyclical investing?
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SimonPB
Valued Contributor
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