Generational wealth is more than just financial security; it's about creating a lasting legacy of prosperity for future generations. Investing in your children and securing life policies play vital roles in this endeavour.
By strategically investing and protecting against unforeseen circumstances, investors ensure their children's financial well-being and empower them to thrive and build upon the wealth they’ve cultivated. Together, these actions form the foundation for a legacy of success that extends far beyond your lifetime. Some of our most recent EasyDoesIt episodes are where we touch on the topic of investing as a parent(s) and look into life policies and what they are in general.
In the episode, a two-part episode of Investing for your kid(s), Carly Esterhuizen, Brand VP at EasyEquities, leads a discussion with Justin Pearse, VP of Partner Operations at Purple Group, and Ntombifuthi Dube, Client Experience Team Leader at Easy. Carly, a new mom, taps into Ntombi and Justin's parental wisdom as they delve into family, kids, and finance. In this initial segment, we explore their perspectives on planning for children, setting expectations, and instilling financial literacy in the next generation.
The second episode gets a little more specific about strategy, where conversations highlight the value of tax-free investing for the next generation, as well as the types of investments these parents like for their kids and why they chose their investments - looking into the different ETFs and Unit Trusts parents can invest in for their kids, diversifying their investment portfolios, and the value of exchanging a kiddies’ meal for an investment (because it’s that easy).
When it comes to life policy, Mbulelo Mpofana, Product Manager at EasyEquities, and Carly Esterhuizen, EasyEquities VP of Brand, introduce EasyProtect, a new life insurance product in the EasyEquities universe to democratise the financial landscape and protect clients’ wealth - going from personal experiences in dealing with life insurance to the features in this new offering that make it suitable for the contemporary, ‘Easy’, generation.
Additionally, a will is essential for transferring wealth by detailing how various assets, such as property, investments, and personal items, are distributed among beneficiaries after death. By specifying these assets, the deceased ensures their intentions are met, minimises disputes, and potentially preserves family wealth across generations. Moreover, including assets in a will allows for efficient tax and debt management, safeguarding the estate's value for beneficiaries. In our previous episode we had Sascha Graham, Head of Legal at Purple Group, talk about what happens to one’s easyequities account and investments upon death.
With retirement annuities (RA), the Pension Funds Act dictates that benefits are distributed to their dependents upon a member's death. To maintain the EasyEquities RA Fund's cost-effectiveness, it's crucial to easily trace dependents and swiftly facilitate payouts after the account holder's demise. Investors are therefore required to add beneficiaries for their RA in order to access the account, avoiding unnecessary fees for beneficiary tracing, minimising deductions from the dependent's benefit, and ensuring they receive their entitlement promptly and in full.