So what is the alternative to an RA if you are self employed? Invest directly in a unit trust instead of an RA which invests in exactly the same RA? (eg: with an Allan Gray RA you choose the underlying unit trust). In that case you will not get any tax benefit but have the freedom to move the money around as you wish. Thoughts?
an RA has it's place,there are tax benefits which are going to become even more attractive.I really don't know where Old Mutual got those figures from,but obviously the broker took a very long comm. period.Liberty Life's RA is the cheapest in the market,theyrecover the comm. at 0.06%p.m. over a 5 year period.Also remember that the growth within a RA is not taxable.It's sorry to hear about Simon's sister and those kind of broker's and fsp's are the one's the fais act is trying to get rid of! one must remember to one's investment every year and if it's not performing,the broker must suggest a change.according to the fais act,a broker MUST meet and review the client's investment at least once a year.