The retirement savings industry has received a shot across the bow from financial services provider Outsurance with its new OUTvest offering encompassing all the features of a retirement annuity but with rock-bottom fees.
“Most of the complaints are that people don’t understand percentages because it’s confusing and unclear. If you have something that is simple and easy to understand and you are paying your fees with a rand amount then you don’t have to calculate any percentages,” he says. For clients who invest less than R300 000, OUTvest will charge 1.5%, which is still below industry standards.An RA is a popular retirement investment plan as it offers tax advantages over other savings products. It is similar to a pension fund except that it is completely independent of your employer. One benefit of this type of investment is that it is exempt from tax on dividends and interest.
“Usually there are up to four different fees and each of them receive a payout of your investment in percentage terms. All of the investment’s administration, such as generation of taxes, keeping track of the value of the investment and making sure that all your information is safe are included in the annual R4 500 with OneFee,” says managing director of OUTvest, Grant Locke.
“It’s not like the client has to go back and forecast what the equity markets will do or how the [JSE] Top 40 will perform or whether or not they need to worry about putting more of their investments offshore. They just need to track their investment on the online tracking system and they can save costs while doing it,” he says.
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Source: SABC News Online - 🏆 32. / 51 Read more »