Fast Fatty the Second (#226)

We use my long-awaited holiday to catch up to some user questions for the next three weeks. We hope you enjoy the shorter episodes as much as I plan on enjoying my break!

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Suzanne

After finding your podcast during hard lockdown, I have been binge listening …..and can honestly say: You have changed my life! Thank you! I have kicked Sanlam and their 5.4% TIC under the arse, and moved my Retirement Annuity to OUTvest. 

The buggers charged me a R30,000 exit fee; but thanks to OUTvest’s amazing product – within 5 months I made up the loss; ½ coming from my contributions, and ½ from real returns!

Following Nerina Visser’s fantastic presentation, I am also spreadsheeting everything, but have run into a bit of a snag and hope you can help.

As a medical professional, I hold a PPS Policy which includes a sickness- and disability benefit, as well as life cover.

Thanks to Stealthy Wealth, I now know that ‘PPS is a mutual society, and doesn't operate like a normal company. They distribute any profit they make back to the policyholders’.

These profits are linked to the above policy, and deposited annually into my PPS Profit Share Account. Annually, PPS provides me with a current Rand value, for the value of my PPS Profit Share Account – and I am happy to say it has been growing steadily.

On my policy statement it further states that ‘These accounts do not vest until the policy holder reaches 60 years;….and on this date the Profit Share Account can be taken TAX FREE as a cash lump sum’.

Can I safely count this Rand value, and the projected growth, towards my retirement planning? And if so, any suggestions on what would be the best (tax efficient) way to do it?

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Brett

If you take out a life policy of a R1 000 000 and nominate a beneficiary.

-Then SARS assesses you and says you owe them R800 000.

-You don't pay the debt due to SARS.

-Can SARS nominate the Insurance Agency as a 3rd party in terms of the Tax Administration Act to collect the outstanding debt from the Insurance provider?

-In other words whose money is it/The beneficiary or the policyholder.

-I have looked into this a bit and it seems that creditors cannot access life policies which would indicate it belongs to the beneficiary and not the policyholder.

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Kobus

I have offshore funds in a Bank account earning nothing at the moment.

I am considering  investing this in the Sanlam Glacier Global Life plan and will do this without a FA to save on costs.

What other reputable companies in SA offer this service where you can invest directly without the help of an intermediary?

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Rudolph

I have a decision to make t