Question:
Hi I have a Discovery RA. Can I move this to 10X? I made an initial lump sum investment and contribute monthly. If I can transfer, what process must I follow? Thanks, Adam.
Answer:
Adam,
Yes, you can transfer your Discovery RA; however you need to be aware that Discovery will most-likely charge you a so-called early surrender penalty. You need to refer to the terms & conditions to estimate how much this will be.
To transfer, you a) need to apply for the 10X RA (visit www.10x.co.za/online-application to apply online or access the PDF application form) and b) you need to give notice at Discovery (you should find the relevant form on their web site, or you can request it from them).
We recommend that you contact Salie in our Cape Town office (021 412 1010) who can assist you with the process and do a cost/benefit comparison to see if it makes financial sense to transfer the retirement annuity (ie he will compare the cost of the surrender penalty against the long-term benefit of lower fees). To do this, you need to give him permission to access your Discovery policy.
