Insights studio
Onyx Income A vs Onyx Income B: Which Investment Fits Your Retirement Goals?
A higher return does not automatically mean a better investment. Compare Onyx Income A and Onyx Income B and discover how income needs, growth objectives and retirement planning influence the right choice.
AS Brokers Insight
Onyx Income A vs Onyx Income B: Why the Highest Return Is Not Always the Best Investment
Choosing between a 12.8% and a 14.2% target return sounds simple. It isn't. This article explains why the right investment depends on your objective — not the largest number on a brochure.
Imagine you are comparing two investments.
One pays 12.8%. The other pays 14.2%.
Most investors immediately choose the 14.2% option.
But what if that decision actually leaves you worse off? What if the smaller return is the better investment for your circumstances?
That is where many investors make a costly mistake. Because investing is not about chasing the biggest number. It is about choosing the right tool for the job.
"The best investment is not the one that pays the highest return. It is the one that helps you reach your goal with the least unnecessary risk."
Understanding the Two Options
Based on publicly available information at the time of writing, Onyx Income A and Onyx Income B are income-focused investment products offered through the Everest Wealth platform. They share a similar income-oriented structure but differ in their target return profiles and income characteristics.
Before exploring the comparison, it is important to note that product features, target returns, income structures, and terms may change over time. The figures referenced here are based on publicly available information and should be verified directly with the relevant product provider before any investment decision is made.
Option One
Onyx Income A
12.8%
Target return (at time of writing)
- Monthly income distribution focus
- Suitable for income-dependent investors
- Designed for preservation-minded retirees
- Consistent cash flow objective
- Lower target return with income stability priority
Option Two
Onyx Income B
14.2%
Target return (at time of writing)
- Higher income objective
- Different cash flow timing characteristics
- Suitable for investors with higher income targets
- May carry different risk or liquidity profile
- Higher target return with growth-orientation
Important: The product details above are based on publicly available information at the time of writing. Programme rules, target returns, income distributions, fees, and terms may change. Verify all current details directly with the product provider before making any investment decision.
Why Return Alone Is a Terrible Decision-Making Tool
Consider a property investor comparing two buildings. Building A yields 8% but is located near a major hospital precinct with low vacancy. Building B yields 10% but has structural issues and sits in a declining area. A focus on yield alone leads to the wrong building every time.
The same logic applies to income investments. A 14.2% return on paper may deliver a worse outcome than a 12.8% return — depending on how you need to use the money, when you need access to it, and how important capital preservation is to your situation.
Five Mistakes Investors Make When Comparing Returns
Comparing percentages instead of outcomes
14.2% on R1 million looks like R142,000 per year. But if the structure requires reinvestment for the first two years before distributing income, a retiree who needs monthly cash flow may run into serious problems.
Ignoring income requirements
If you need income today, an investment that pays a higher return but distributes less regularly may actually deliver less usable cash than a lower-return option that pays monthly.
Ignoring capital preservation objectives
Retirees often need their capital to last 20 to 30 years. An investment that maximises income in the short term at the expense of long-term capital stability may not survive long enough to matter.
Ignoring behavioural risk
Investors often make poor decisions when income is irregular or unpredictable. An investment that pays less but creates financial certainty may lead to better long-term behaviour and fewer costly mistakes.
Not understanding reinvestment
If you are reinvesting income rather than drawing it, compounding effects change the comparison entirely. A calculator is more useful here than a brochure figure.
Rather than guessing at outcomes, use the comparison calculator below. It is designed to help you model what each option actually delivers based on your investment amount, time horizon, and income requirements — not just the headline return.
Three Case Studies: Same Investment, Different Answers
The following examples are illustrative only. They are not projections or guaranteed outcomes. All figures assume target returns are achieved, which is not guaranteed. Market values can rise or fall.
Case Study 1
The Income-Dependent Retiree
Age 65 · R1,000,000 investment · Monthly income required
Maria is 65 and recently retired. She has R1,000,000 to invest and needs monthly income to cover living expenses. She cannot afford to wait for distributions. She needs consistent, reliable cash flow every month.
In this scenario, the consistency and predictability of income distribution matters more than the headline return. If Onyx Income A distributes income monthly and reliably, it may serve Maria's objective better than a higher-return option with less frequent or less predictable distributions — even if the rand value of those distributions is lower on paper.
For Maria, the question is not "which pays more?" It is "which keeps my lifestyle funded without forcing me to dip into capital?"
Case Study 2
The Accumulation Investor
Age 45 · R1,000,000 investment · No income required
David is 45 and building his self-funding retirement. He does not need income from this investment now. He is in accumulation mode. Every rand of income received is going to be reinvested. In this scenario, the highest achievable return — assuming it is sustainable — may work in his favour over a long time horizon, because compounding amplifies the difference between 12.8% and 14.2% significantly over 15 to 20 years.
David's key questions are: Is the higher return sustainable? What is the risk profile? What access does he have to capital if his circumstances change? These are questions an adviser can help model using the calculator.
Case Study 3
The Hybrid Investor
Age 58 · R2,000,000 total · Partial income now, growth for later
Sandra is 58 and still working part-time. She needs some income now to supplement her earnings, but she also wants her capital to grow to support a full self-funding retirement in seven years. She wants income today and growth tomorrow.
A possible approach here is to split her capital: allocate a portion to the income-focused option for current income needs, and a portion to the higher-return option for longer-term growth. The correct split depends entirely on how much income she needs now versus how much growth she requires by retirement. This is precisely the kind of modelling an AS Brokers adviser can assist with.
Watch the short video below for a plain-language walkthrough of how to think about this comparison before speaking to your adviser.
Questions Every Investor Should Ask Before Choosing
Before comparing two investment options, work through the following questions. Your answers will usually tell you more than any return figure.
- ✓Do I need income from this investment now, or am I reinvesting?
- ✓How frequently do I need that income — monthly, quarterly, or annually?
- ✓How long is my investment horizon?
- ✓How important is access to my capital? Could I need it at short notice?
- ✓What is my primary objective — income, capital growth, or a combination?
- ✓What is my tax position? Could a higher-income option increase my tax liability?
- ✓Am I comfortable with the risk associated with a higher target return?
- ✓Does this investment fit into my broader retirement income plan?
Common Mistakes Income Investors Make
Mistake
Chasing yield without understanding the distribution mechanics
Mistake
Ignoring inflation eroding real returns over time
Mistake
Overlooking the tax implications of higher income distributions
Mistake
Locking capital in an illiquid product without a contingency plan
Mistake
Choosing a product in isolation rather than as part of a full retirement income plan
Mistake
Not stress-testing the plan against a lower-than-expected return scenario
Common Questions
Is Onyx Income B always the better choice because it pays more?
Not necessarily. A higher target return may come with different risk characteristics, different distribution timing, or different capital access terms. The better option depends entirely on your income needs, time horizon, and objectives. A calculator can help you compare actual outcomes rather than headline rates.
Can I split my investment between both options?
In principle, yes — but the appropriate split depends on your full financial picture, including existing income sources, other investments, tax position, and retirement timeline. Speak to an AS Brokers adviser before structuring a split.
Are the 12.8% and 14.2% figures guaranteed?
These figures represent target returns based on publicly available information at the time of writing. Target returns are not the same as guaranteed returns. Market values can rise or fall, and investors should verify current terms and performance expectations directly with the product provider.
How does inflation affect these investments?
South African inflation has historically averaged between 5% and 7% per year. If your income investment returns 12.8%, the real return — after inflation — may be closer to 6% to 8%. Over a long retirement, inflation erosion is one of the most significant threats to income sustainability and should be factored into any comparison.
The Right Question Changes Everything
The question is not: "Which investment pays more?"
The real question is: "Which investment helps me achieve my objective with the least unnecessary risk?"
A calculator can often answer that question better than a brochure, because it models outcomes rather than headlines. Use the tool above to compare what each option actually delivers for your situation.
Successful investing is not about finding the highest number. It is about finding the right strategy — one that is sustainable, practical, and aligned with your life. Speak to an AS Brokers adviser to discuss which option suits your full picture.
Disclosure: Albert Schuurman is an authorised independent financial adviser and may earn remuneration from products or services discussed on this website. Information presented may be sourced from product providers, brochures, fact sheets, official websites, publicly available information, and industry publications. Product features, rewards, benefits, fees, returns, programme rules, and terms may change over time. Information is believed to be accurate at the date of publication but should be verified directly with the relevant product provider, insurer, investment manager, administrator, or service provider before any decision is made. AS Brokers is not affiliated with or endorsed by any product provider referenced in this article. This article is for educational purposes only and does not constitute personalised financial advice, tax advice, legal advice, investment advice, or a recommendation to transact.
Note: Market values can rise or fall, and past performance is not a guarantee of future outcomes.