If there’s one thing that 2020 has taught us, it’s to expect the unexpected. It has never felt more important to make financial provisions for your future.
But did you know that it can be to your benefit to invest with your family? This includes not only your parents, but also your children. (Seeing as so many of us are dealing with the challenges specific to the ‘sandwich generation’.)
This is where the recently launched PPS Investments Family Network comes in. By connecting your family members’ investments on one platform – and potentially benefitting from a reduced family administration fee – it becomes easier to build intergenerational wealth.
The benefits of this reduced family administration fee are clear: it gives your aging parents access to lower administration fees, it provides you yourself with lower fees (thereby boosting your savings), and it fosters a family culture of saving for your children. The more your family invests in this network, the more everyone benefits. And over the long term, these incremental savings can contribute substantially to your investment goals.
So, how does it work, when we get down to numbers? It all comes down to a tiered administration fee scale. Say your family’s combined assets are valued at R1.5 million – the administration fee (excluding vat) would be 0.50%. But if your collective assets reach R5 million, that fee comes down to 0.10%. Does that sound negligible? An annual admin fee of 0.50% on a portfolio of R5 million would be R25 000. But at 0.10%? That’s R5000 per annum – and a saving of R20 000, which can be reinvested … You do the math.
Those are sound numbers, with a lot of potential for growth.
For more information, visit pps.co.za
PPS Investments is a licensed FSP.
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