Consider the increased benefit of an entire family taking a collaborative approach to their finances.
Please be aware the below blog is older than 12 months, therefore the information may not be relevant or up to date.
There’s no doubt taking financial advice can be hugely beneficial, not only to your bank balance but also for your mental wellbeing.
The International Longevity Centre (ILC) carried out research in 2017¹ and then revisited it in 2019². The results found those who took financial advice between 2001 and 2006 received, on average, an overall boost to wealth of £47,706 during 2014/16. It further found those that maintained an ongoing relationship with a financial adviser ended up having nearly 50% higher average pension wealth than those who only took advice at the start of the study. Their research³ also highlighted that receiving advice has a positive impact on mental wellbeing as it boosts confidence, provides people with greater control of their finances and gives increased peace of mind.
So, if we know how good it is for an individual to take financial advice, consider the increased benefit of an entire family taking a collaborative approach to their finances. Much like compound interest on a pension pot, the synergies of intergenerational wealth planning are clear. If families work together, not only does the whole family benefit financially, but it can also create stronger bonds within the family unit.
Of course, taking a holistic approach to family finances only works if the whole family use the same financial adviser. A shared adviser can get to know everyone’s aspirations and then develop a plan to help achieve those goals.
That’s why Ginkgo offers ‘Family Linking’ through the Quilter investment platform.
More value for you and your family
If you’re part of a multi-generational family with several family members who want to invest, you can use Family Linking to help drive down the cost of investment.
- Up to four generations of a family can be linked
- Family Linking pricing provides better value - each family members’ charge is based on the total value of all products held on our investment platform by the family members who are linked
- As the value of all products held on our investment platform grows, the percentage charge reduces
- It provides the ability to manage an entire family’s wealth on one easy-to-use platform
- Full death benefit flexibility facilitates the cascade of wealth through the generations
A small family group example: £445 saved per year
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Client’s mum, age 79, widowed • Charge without Family Linking: 0.29% |
Client, age 51, divorced • Charge without Family Linking: 0.29% |
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Client’s child 1, age 15 • Charge without Family Linking: 0.50% |
Client’s child 2, age 11 • Charge without Family Linking: 0.50% |
Who is eligible for Family Linking?
- Grandparents, parents, parents-in-law, spouse/civil partners, brothers, sisters, children (step & adopted) or grandchildren of the client.*
- Trusts - where the investor or the investor's family members listed above are the settlor of the trust.
- A SIPP investing in the Collective Investment Account (CIA) - where the investor or the investor's family members listed above are the SIPP member.
- A CIA held in an offshore bond where the investor and/or the investor's family members listed above are the bond holders or settlors of the bonds held in trust.
- A shareholder of a company investing through a CIA (where all other shareholders are family members).
- Each investor has to have the same financial adviser (or advice firm).
Whatever your family’s financial situation, a collaborative approach across generations will undoubtably improve outcomes for the whole family. And, at the end of the day, isn’t that what we all want to achieve?
If you and multiple generations of your family are looking at how best to manage your overall wealth, we’d love to meet you all together to explore the options some more.
By Daren Wallbank, Chartered Financial Planner
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 25/04/2023
Tax Planning/Estate Planning & Will Writing are not regulated by the Financial Conduct Authority.
The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.
1https://ilcuk.org.uk/the-value-of-financial-advice/
2https://ilcuk.org.uk/what-its-worth/
3https://ilcuk.org.uk/peace-of-mind
* As defined by the Civil Partnership Act 2004 and may also include step or in-law children and parents
