Leveraging the benefits of aggregated family fees

Who is family pricing available to?

PSG Wealth’s family pricing offering is exclusively available via a PSG Wealth adviser and applies to the investments of a family unit which are administered on the PSG Wealth platform. The members of a family unit may include:

• spouses,
• siblings,
• children (regardless of their age),
• parents,
• grandparents,
• grandchildren,
• family trusts, and
• family-owned companies.

The benefits of family pricing

Family pricing holds several benefits, including that:

• there is a cost benefit to clients by leveraging collective family wealth in respect of the administrative fees associated with their investments,
• additional family members and/or entities who wish to be included in their family’s advice plan can benefit from family pricing that is already in place,
• it creates a cost-effective way to facilitate intergenerational wealth transfers, and
• it provides a support mechanism for advisers to execute their clients’ financial advice plans where more complex structures such as trusts and companies are involved.

Positioning your family to benefit from family pricing will involve grouping your family’s assets together onto a single platform. This holds a further advantage, as it means that that your family and your adviser can manage and view all of your investments in one place.

How does family pricing work?

Almost all investment platforms in South Africa make use of some form of a fee scale to calculate and charge product administration fees. These fees are calculated as a percentage of the value of the assets in a client’s investment portfolio and are almost always lower on larger investment amounts. A family pricing model can provide extremely competitive product administration fees to clients if fees are levied on a larger investment amount (the total value of a family’s assets) rather than on the value of each family member’s individual investments.

How can you activate the benefits of family pricing?

You and your PSG Wealth financial adviser will need to agree on the individuals and entities that comprise your family unit before family pricing can be applied to your family’s investments. Your adviser will then ensure that your family’s investments on the PSG Wealth platform are grouped together for fee calculation purposes. Your adviser will also be able to assist you if you want to add investments under this fee structure (e.g. additional family members, new investments, or transfers of existing investments from another provider).

Compounding benefits

Grouping your family’s investments together on the PSG Wealth platform holds additional benefits such as access to funds exclusive to PSG Wealth. Using these benefits in conjunction with family pricing can provide an opportunity to further accelerate your wealth creation journey.

Conclusion

Contact a financial adviser today to guide you on your path to financial freedom and discuss the family pricing options available to you.