Retirement annuities pros and cons | South Africa

[@TalkingMoneyWithNozi]

To buy my eBooks for beginners or book me for coaching, click on this link :👉 talkingmoneywithnozi.com/collections/all

[@buhleshezi5222]

Hey Nozi, thank you so much for this video. I just took an RA with Momentum but tbh I didn’t have the full details of what was signing up for and this video helped a lot to clarity some of the questions I had in mind. Thank you, thank you and thank you ❤❤❤

[@yasinnabi]

Wonderful and great content. I enjoyed watching , thanks for sharing it ^^^^

[@TalkingMoneyWithNozi]

You're welcome 😊

[@inukadistributorfragrances8513]

I am a financial advisor and great video 🎉

[@OtshegoDiphagwe-ip9rn]

Hey so I looking to purchase an annuity with my late father pension money.I'm 24. I'm a student. So will I my monthly income at my age?

[@davidrodgers9829]

hi Nozi tell me i bought a Aunuity product but im not happy about it is it possible to change the product i understand its not reversible.

[@TalkingMoneyWithNozi]

@@davidrodgers9829 it depends what kind of Annuity product. If it's an insurance product then you cannot reverse without paying a penalty fee. But if its not an insurance product then you can switch to another annuity anytime

[@percymashao1472]

This helped me a lot. Thank you.

[@TalkingMoneyWithNozi]

Thanks for watching Percy

[@lalipillay8331]

I am a 58year old female and plan to take an early retirement at the end of the year, do I qualify for retirement benefits. I work in a pharmaceutical company for the past 40 years

[@TalkingMoneyWithNozi]

Yes, you qualify

[@craignyatondo5521]

Thanks for sharing such vital info. It's game changing for young people.💥

[@TalkingMoneyWithNozi]

Thank you 😊 for watching

[@anthonyhewat9254]

The other disadvantage you don’t mention are very high fees on many RAs…

[@l0ve127]

This was so informative, thank you so much 🙏🏾

[@TalkingMoneyWithNozi]

Pleasure 🙏🏼

[@dafarii]

I'm considering having two RA's. I already have an actively managed RA. But now I'm thinking of a low cost index tracking RA. What are the disadvantages of having two RA's? I'm thinking you pay fees on both, but the fee's don't really 'double', right? Say you pay 2.5% EAC on one RA. Opening another RA with 1%, you're still lowering your overall cost right? Anyway. It's good info. I've been snowballing my RA, and its doing great. After splitting I'd also try an max out my TSFA before retirement with S&P 500 ETF. Does that sound like a good plan?

[@TalkingMoneyWithNozi]

Hi Wouter you're correct, you will essentially increase your fees if you have 2 separate RAs. I've recently moved to the Sygnia Skeleton 70 RA and the fees are just under 0.6%. S&P 500 sounds good, although you could diversify by getting Satrix MSCI or Ashburton Global 1200 (the name is going to change soon as FNB will now be managing) or Coreshares Total World.

[@dafarii]

@@TalkingMoneyWithNozi thank you for the quick response. It seems a bit counter intuitive that overall fees will increase with two RA's if you still contribute the same overall amount. I need to make an excel spreadsheet haha. I've also been looking at the mymoneytree list and pondering it for a week now. My leaning is also towards the Sygnia Skeleton 70, and I'm not sure if I fully trust Outvest even though they seem to have a cost effective and well performing product. I'll look into those ETF's. Thanks for the tips :)

[@NtefelengDesertguru]

Hi how do you move a RA from 1 company to another Nozi?

[@naturallybecca4360]

My RA EAC is at 6% for year one 4% year 2-4 and 1.7% thereafter. My financial adviser said i should only about the 1.7% and not the others. Does this make sense? I earn within the 39% income bracket and I'm really not sure if I'm getting my monies worth with this cumulus product. I know i need an RA to save on tax legally but the fees in the first 5 years are a little concerning.

[@TalkingMoneyWithNozi]

Those fees are absolutely ridiculous. I pay 0.5% for my RA. Anything about 1% fees is daylight robbery. Also, you don't need a financial advisor for an RA.

[@krishniarumugam]

Thank you for asking this q. Just came across this channel. Subs as well. I was going to incr my RA contribution next month noticed by FA takes a big cut over an above the %. Am i able to increase my contributions without his inputs? ​@TalkingMoneyWithNozi

[@naturallybecca4360]

@@TalkingMoneyWithNozi thank you so much and i totally agree.

[@mabelmokoka903]

Thank you sis Nozi, I love personal finance I want you to mentor me. I'm learning a lot. I have my retirement Annuity with Sanlam is it a good place to have my retirement annuity with them.

[@TalkingMoneyWithNozi]

Having a retirement annuity is better than not having one. But having said that, there are retirement annuities that are better than others. How do you know the difference? FEES! Some charge more fees than others. Please click on the link in my description to see the lowest fee RAs in South Africa. Your homework is to check if your RA is charging you more on less than those on the list. If you’re paying more fees, move to lower fee RA. It’s your money at the end of the day.

[@mabelmokoka903]

@@TalkingMoneyWithNozi Thank you sis Nozi..

[@lorramokoka7778]

If personally you don't like RA what is the best product for one to buy while still working

[@annkriel4027]

Hi, I live in Canada (66 years old) and was wondering if you had advice about getting my retirement annuity investment from Old Mutual?

[@TalkingMoneyWithNozi]

The best thing to do is to contact them and they will assist you

[@leratononhlemkhabela7759]

This. Video helped a lot

[@TalkingMoneyWithNozi]

@@leratononhlemkhabela7759 I'm glad

[@SiaNgwenya]

So informative! Thank you

[@TalkingMoneyWithNozi]

You're welcome

[@lesolangmotsoakoa1682]

Can I change the fund administrator if I'm not happy with the current one? if yes, what are the exclusions? pros/cons

[@TalkingMoneyWithNozi]

Yes you can switch from one RA to another. You just need to tell your new provider that you want to transfer funds from your old provider

[@lesolangmotsoakoa1682]

@@TalkingMoneyWithNozi Thank you for your response, can I access a portion of the funds during the transfer period?

[@ntuthukonene8567]

Hi Nozi. Is an EAC fees of between 3.7% and 4%(within 1-5 years) reasonable? I would like to open an RA and those are the EAC's they have given. They say they also give out loyalty bonuses to their clients which means their fees are actually lower. Their guaranteed growth is 8%. Would it be okay to open another RA with Sygnia which are rumored to have low EAC fees?

[@TalkingMoneyWithNozi]

My RA is with Sygnia. EAC is only 0.5%. Stay away from expensive insurance-like RAs, in the long run the fees will destroy those returns.

[@ntuthukonene8567]

@TalkingMoneyWithNozi Thank you Nozi.

[@motivet7908]

How much are Retirement annuities payments? If you joined for years Asking on behalf of parent

[@TalkingMoneyWithNozi]

It depends on which platform you're using. On Sygnia the minimum deposit is R1000

[@motivet7908]

@@TalkingMoneyWithNozi Alright🙏

[@zeesibaya7520]

Can I get this tax return rebate on my Employer pension fund as well?

[@TalkingMoneyWithNozi]

You get the rebate automatically every month. You are automatically paying less tax than if you didn't have a pension fund

[@bonganikwinda5540]

Does this apply for people who work contracts?

[@TalkingMoneyWithNozi]

Yes

[@vuyokazimalinga2515]

I'm not working bt I want to start to invest January

[@brutis998]

❤❤❤

[@rendanithavhanyedza]

Thanks for sharing this information

[@TalkingMoneyWithNozi]

You're welcome 😊. Thanks for watching

[@dododululu4059]

Hi No I. Not sure if its a good move or not what I'm about do. I wanna move my RA from this financial institution to EE-TFSA, can I please hear your opinion on this.(taking into consideration that you are not a Financial advisor)

[@TalkingMoneyWithNozi]

What is your reason for moving?

[@dododululu4059]

@@TalkingMoneyWithNozi I want to manage my monies by myself. I looked at my statement and found out that the charges are way too high. (Those handling fees And all). And I've learnt that whether the contributions are accumulating profits or not, they still take their monthly funds.

[@TalkingMoneyWithNozi]

@@dododululu4059 those are good reasons to move. I put a link to a list of the cheapest RAs in my description , click on it and have a look. I also recently moved my RA as well. You need to notify your current RA provider and your new provider that you want to move and they will both send you forms to complete.

[@dododululu4059]

@@TalkingMoneyWithNozi thank you Nozi, i'll definitely have a look on that link. Have a lovely day.

[@sedzesanimathavha9939]

thanks

[@bonketshwane98]

💕✔

[@bonganikwinda5540]

Does this apply for people who work contracts?

[@TalkingMoneyWithNozi]

Yes

[@sandilendlovu4225]

🤝👌