Beware of high fees and the lack of good independent advice. Investonline is the best place to invest your Living Annuity savings
These are the main reasons:
1. Fees
The average initial fee for a Living Annuity account is generally between 1% and 3% upfront, and ongoing fees average between 1% and 2% per annum. These fees are very important to take into account as they ultimately decrease the value of your invested capital and negatively affect your returns.
At Investonline, we have the lowest advisory fees in the industry as our initial advice fee on a Living Annuity account is between 0% and 0.5%, and our ongoing fee is a mere 0.5% per annum.
In addition, the administration fee is very low at roughly 0.2% per annum. Clients investing R1,5 million or above will also receive fee rebates depending on their portfolio selection, which may result in a negative administration fee. This means that you as the client will receive free units for investing on the platform.
2. Financial Advice
The second major factor is the quality and independence of the financial advice that you are receiving for your retirement. Many institutional advisers do not give independent advice resulting in them recommending certain funds or products, because they are linked to a certain institution or bank. Hence you will not get the best advice.
At Investonline, we are a completely independent financial advisery. We do not recommend any fund managers or providers for any reason other than to make your money grow as best as possible. Hence we choose to utilise the providers that are the cheapest, and recommend investing into unit trust funds that we believe will give clients the best future returns, in line with your particular risk appetite.
We also dedicate ourselves to offering an ongoing advisery service whereby we continue to monitor our clients’ portfolios. We will continue to recommend any relevant changes that we feel will be appropriate going forward, according to any movements in global and local markets. All switches between unit trust funds are completely free of charge.
What is a Living Annuity?
A living annuity is an investment product that provides you with an income from your retirement savings.
A living annuity gives you the flexibility to choose your income each year (subject to regulatory limits) and how your money is invested.
Any remaining capital after your death passes to your nominated beneficiaries.
How do I draw my income/pension from a Living Annuity?
You can specify the income that you would like to withdraw, which can be between 2.50% and 17.50% of your investment value per annum.
Your specified income will be paid to your bank account on the 27th of every month.
I have an existing Living Annuity, how do I transfer it?
Living Annuity transfers are very simple and completely free of charge.
You are able to transfer your living annuity account to us at Investonline through a Directive 135 transfer. All that is required is a simple transfer request letter and one of our financial advisers will assist you with the process from start to finish.
There will be zero initial advice or onboarding costs if you decide to transfer your existing Living Annuity account to Investonline.
Once the transfer is complete, you are able to make use of one of our client portfolio managers to reposition your account and continue to advise you going forward.