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« on: May 12, 2013, 10:34:01 pm »
I too have had bitter experiences with RA's, particularly when you come to extending its maturity date, the costs are horrendous. My Old Mutual RA gave me a 5.5% internal rate of return over some 22 years which was ludicrous. I cashed out and moved my funds into a Coronation Top 20 Fund - even with my minimum drawings of 2.5% quarterly ( +/- R 2000 per quarter) the fund has grown by over R 35,000 in 16 months.
I think it is important that you look at your debt and what interest rate you are paying - I for example have a better interest rate on my overdraft than on my bond so when I want to buy shares I fund it across my overdraft in preference to my bond account. Also keeping money on a money market account gives you such a poor return,maybe what you need to look at is how often you dip into your MM account and if you can take a large percentage out of the account and invest in say a 6 month FD. Current interest a rates are about 5% but if you have a parent over 60 get them to invest for you as you could get 1/2 % extra or take it to Capitec for a better interest rate. Personally I would never use an investment advisor unless you can find one over 55 who has experienced some financial difficulties in live and I don't mean debt, but experience in turbulent markets etc