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Maxing out RA


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#1 Midas1

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Posted 04 August 2019 - 02:10 PM

Ps is monzo....mondi and mondi keeps coming up on my spell....but monzo bank
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#2 Midas1

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Posted 04 August 2019 - 12:48 PM

Guess I'm not trusting soul as got mate in uk to take card and pin and draw out ten pounds to check..then changed pin..you can draw anywhere in world as mastercard
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#3 Midas1

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Posted 04 August 2019 - 12:42 PM

Yes...only hitch at moment is you have transfer through travel wise as dont have iban...so you use currency exchange....there's also one called revolut people use but dont laugh name put me off and doesn't have the 85k cover...flip.i thought mondi efficient did it online on a Monday and said card with you weds...and card arrived...on weds...you need full uk address with postal code even a friends if they can give you card...I used have high street bank account there but closed it...then Barclays Lloyd's all them were so difficult for me to re open....so was chuffed re mundo..only opened this in last month
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#4 new john

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Posted 04 August 2019 - 11:49 AM

Account is called mondo


Is it https://monzo.com ?
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#5 Midas1

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Posted 04 August 2019 - 10:26 AM

Account is called mondo
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#6 Midas1

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Posted 04 August 2019 - 10:25 AM

Hi am sure someone here can help with this....my view is another good investment is etf if buy low like Nasdaq and s and p....I've opened a uk account recently with mondi.. you need EU passport and access to an address...in time I'm going buy some uk equities...but you can't do this from mondi yet but is no cost account...but read small print...digital banking and you open on cell take photo passport and do video clip verify it's you.. takes minutes in 2 days my card arrived...tested at Mastercard machine and works...think covered by financial board up 85 000 pounds...quite amazing after all hassle I had to open account...lit my friends working abroad using this...now I need find a safe cheap charge equity account there....good luck....ps they could change financial immigration laws hey in time..best get some out now...was pretty disgusted with my ra...actually zero profit
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#7 new john

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Posted 04 August 2019 - 09:43 AM

Hi John, personally don't pay ra anymore was with a gray..money hasn't gone up at all...terrible investment...do save in my 33k a year tax free, rental properties and equities . Ra as well can only get third when 55 unless you financially imigrate you can access the money..I dont like that! Going put some pounds in my fnb global account when exchange ok...maybe post brexit theres drop...and my preference dual listed equities dont trust rand.....good luck..am sure someone else will have ra success stort


Cheers Midas.

Therein lies my curiosity. The returns are indeed low, yearly. Compounded by the high costs per annum which have a snow ball effect down the line. But I see the return from the taxman as a sort of “dividend” if you will.

The access at 55 is not an issue for me as I plan to return to my ancestral homeland upon retirement.

“You can contribute 27,5% of your taxable income or R 350 000 – the lessor of both.

That means with an increase to your contribution, you will receive 41 cents back in taxes for every Rand spend on RA fund.
Example – R 100 000 paid to insurer will result in R 41 000 less tax to pay.

You can even carry on with the current contributions – R 17 000 per annum – and in FEB 2020 do an additional payment that you feel you can afford.

Just make sure with your broker that you will not be expected to do this every year.
In other words – you could have started with a certain monthly premium and annual increase on the premium.

Then it is better not to put you under an obligation if you decide to increase your monthly premium now. “

Above is what I got from my auditor.

Basically I want someone to explain to me is:

If R350000 was invested right now into say for instance, a Top 40 index tracker or even World Index, what would be the ROI in numbers be between that (in yearly dividends) and a Tax Cut. Per annum.

There are few individuals I can ask this as few individuals do any sort of DIY investing, as is commonplace here with what we do.
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#8 Midas1

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Posted 04 August 2019 - 09:21 AM

Hi John, personally don't pay ra anymore was with a gray..money hasn't gone up at all...terrible investment...do save in my 33k a year tax free, rental properties and equities . Ra as well can only get third when 55 unless you financially imigrate you can access the money..I dont like that! Going put some pounds in my fnb global account when exchange ok...maybe post brexit theres drop...and my preference dual listed equities dont trust rand.....good luck..am sure someone else will have ra success stort
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#9 new john

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Posted 04 August 2019 - 09:04 AM

Hi forum.

Is anyone currently making use of the allotted 27.5% or R350k contribution to RA allowance?

Wondering is it worth it? Without divulging one’s salary figure, can those who have done the math confirm if it is financially wise to make use of the incentive.

My entire adulthood savings have gone either to traditional fixed deposits or equities.

I realize this is not a “Financial Help” forum but I figured a good audience would be those of us who are already making use of the alternative investment vehicles available to an individual.
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