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Author Topic: RA and fees  (Read 18300 times)

kavesh

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RA and fees
« on: March 12, 2020, 01:16:53 pm »
Call me a late bloomer.....I have not considered how fees impacts your investments until recently, and the impact is huge!

I recently moved my preservation fund from Liberty(2.97%) to 10X (1%) and hope in the longer term this will be a good move.
I also have a Sanlam RA which is charging high fees , 2.7%, I want to move that as well.
I could go the 10X route but don't want to have all my eggs in one basket. Any ideas on where I should look to? On another thread there was mention of a Nedgroup RA at less than 1%.
Btw I prefer dealing directly and not have to go through a broker.

Thanks
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Pax

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Re: RA and fees
« Reply #1 on: March 13, 2020, 08:35:48 am »
Have a look at OUTvest. As far as I know they currently have the lowest fees for an RA for larger balances, say R750k upwards (circa 0.2%). Second best is Sygnia if you use one of their in-house funds (circa 0.63%).
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kavesh

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Re: RA and fees
« Reply #2 on: March 13, 2020, 09:23:16 am »
Thanks for the leads.

Outvest seems to charge a flat R4 500 till your investment reaches R2 250 000, then its a flat 0.2%

Sygnia according to their website is 0.2% if you use their ETF's, otherwise its 0.4%.

Will research some more on these and revert
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kavesh

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Re: RA and fees
« Reply #3 on: March 17, 2020, 06:31:28 pm »
So I am keen to move my RA, which is not large to possibly Sygnia. I asked for a quote and it seems based in the funds I selected fees will be around 0.42% still way better than the 2.75% Sanlam is charging.

With the markets taking a blood bath at the moment, I feel hesitant to move. Although I am not cashing out but merely switching to possibly Sygnia. Should I wait for markets to stablise or would you say move now and at least save on the fees?
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Patrick

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Re: RA and fees
« Reply #4 on: March 18, 2020, 01:02:46 pm »
The bloodbath isn't the problem, it's the volatility. You don't want to move out of one and have the markets climb 5% before you can move into the other. It could work in your favor too if the markets dropped 10% in the day you're out of it!

Might be worth finding out how long the move would take from both providers, and if it's too long wait until things settle.
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kavesh

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Re: RA and fees
« Reply #5 on: March 18, 2020, 01:18:14 pm »
The process to move can take about 2 months.
I moved a preservation fund from Liberty to 10x recently and thats how long it took.

What may be a better option for me is to stop the debit order on the Sanlam RA and start a new RA of same value debit order.
Would just need to see what the implications with Sanlam would be. Just need to get away from the high fees!
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