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Author Topic: Getting out of an RA ( Liberty ) !  (Read 12946 times)

Scabenga

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Getting out of an RA ( Liberty ) !
« on: June 17, 2018, 12:26:41 pm »
Hello Guys

I am not sure if you have dealt with this topic before, if you have please just point me in the right direction to the post/link.

I have a RA with Liberty ( The RA LA Excel Lifetime Phases 5 ) started in 2010 which I am being murdered and cheated with fees of 3,78% costs ( Advised originally by Liberty )  :wtf: I am trying to get out of it ( theres about R200 000) Any advice on what I can do with it while I am trying to emigrate.

I live in Zambia and starting the process to emigrate but will take a while but what can I do to get this money out or move it ! ( I will be willing to pay all taxes and penalties, I just want to get away from these thieves !

Any advice would be much appreciated
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gcr

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Re: Getting out of an RA ( Liberty ) !
« Reply #1 on: June 17, 2018, 10:56:46 pm »
I don't think that you can get your money out, the option may be to suspend payments (do it correctly through the company) and end up with a deferred pension to age 55. At that point you can convert it into a Living Annuity and then draw down 17.5% p/a to exhaust it as quickly as possible and then have the funds forwarded to your destination country.
Maybe others can comment if they have counter arguments
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Hamster

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Re: Getting out of an RA ( Liberty ) !
« Reply #2 on: June 18, 2018, 07:04:13 am »
Transfer it to a low cost provider like 10x.co.za? I mailed them before about transferring my Stanlib one to them. They'll do a cost analysis for you.
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Patrick

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Re: Getting out of an RA ( Liberty ) !
« Reply #3 on: June 18, 2018, 04:27:43 pm »
I believe if you financially emigrate then your RAs are paid out to you less penalties and taxes. Are you planning to do that or just planning to move overseas and let the money sit until you're 55+?

The 10x and Sygnia Skeleton funds are pretty cheap, I'm sure they could give you advice on what the best route to follow would be, but the 3.78% fees are murder. I imagine in the long term it will be worth any penalty to escape that.
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Orca

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Re: Getting out of an RA ( Liberty ) !
« Reply #4 on: June 18, 2018, 04:58:47 pm »
I presume the OP was living in SA at the time when he purchased the RA and then just ducked to Zambia and is now "Officialy Emigrating" via SARB and SARS. That is the only way an RA can be paid out before pension age of 55.
http://www.nedgroupinvestments.com/Insights/InsightDetailsPage/ras-and-emigration#
« Last Edit: June 18, 2018, 05:15:51 pm by Orca »
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Scabenga

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Re: Getting out of an RA ( Liberty ) !
« Reply #5 on: June 20, 2018, 10:13:27 am »
Yip - I left for Zambia 8 years ago and just let the fund continue as is :'(.

Now I am fixing all, estate planning etc so I am trying to effect the "Official Emigration" via SARB/ SARS , proving a little difficult as we will need to return for schooling of the little ones, so just confirming how this will effect everything.

It becomes interesting as you are a SA citizen who does not live in the country and has not for 10 years but when I came back, I basically enter as a foreigner with regards to banks, credit cards and what really gets them messed up is that I have two cars still in RSA, so the licensing departments solution was that I need to put them in someone else's name as I will not have a residence in RSA and cannot get the proof of residence to renew the license every year !

If I can get it out ( with emigrating ) I will pay all fees and get it out.
If if can move and pay fees, to move to a lower cost, I will. Thanks for the heads up.

I would of though that there would be another option that you can pay all the taxes owing and move it to another policy - no versatility what so ever with RA's

Thanks for the help.
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Orca

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Re: Getting out of an RA ( Liberty ) !
« Reply #6 on: June 20, 2018, 10:36:20 am »
Not sure if you can move it to a different RA. Just a tip. Do not use an agent to do your emigration on your behalf as the charge around R30k to R40k. Do it yourself as it takes 2 to 3 trips to SARS and 3 to the bank.
I used FNB as my SARB agent and they charged me a little over R600.
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