National Savings Month - Maximising the benefit of family investing

The economic impact of hard lockdown due to COVID-19 created financial challenges for individuals, households and businesses. It has underscored the imperative of investing and saving for financial sustainability, not only during National Savings Month in July, but beyond.

Adopting a proactive approach to building financial sustainability as an individual, and as a family, will engender a culture of saving resilience, while building intergenerational wealth.

One way to impart these values and to instil a culture of saving as a family is through the PPS Investments Family Network, which caters not only for an individual, but for their immediate family.

This enables one to connect their family members’ investments on the PPS Investments platform to potentially benefit from a reduced administration fee.

Building intergenerational wealth starts with fostering a savings mindset. Over the long term, the incremental savings from reduced administration fees compound, and can ultimately contribute to helping a family reach their investment goals. Especially during these times as many are looking for solutions that will make the money that they have invested work harder for them.

Three reasons to consider investing as a family:

1. Reap the benefits as a family – when you invest as a family, you and your family members could benefit from a reduced administration fee with a Family Network.
2. Foster a savings culture – this is a great opportunity to encourage family members to save and build financial sustainability.
3. Invest towards a shared goal – this allows you to work together as a family to build intergenerational wealth for future generations.

Family investing in action

Olivia Jones has a market value of R2 million with an individual administration fee of 0.43%. She then creates a Family Network that includes her spouse, parent in-law, parent and child. The market value of the Jones Family Network reaches R5 million, thereby reducing the administration fee applicable for the family drops to 0.29%. Olivia benefits from a fee saving of 0.14% while the rest of her family enjoys a saving of 0.21%

These are sound numbers, that offer substantial potential to bolster your family’s investments. Through saving on administration fees, and by being smart and taking ownership of their savings position, they will enjoy the compound benefits in years to come.

An ideal saving solution for 2021 is to consider investing with your family, through the PPS Investments Family Network that allows you to connect investments not only with your spouse, but also with your parents (including parents-in-law) and children to build wealth that spans generations while building family financial sustainability this National Savings Month and beyond.