Investors are becoming more and more sensitised to fees. This makes sense, since an investment only happens when an investor provides the assets and takes on the risk. The product provider provides a platform enabling you to do that, but for many years providers overvalued that service.
Retirement savings are especially sensitive to the impact of fees due to the long-term nature of these investments. As your money compounds over time, so do fees. In the past, fees were calculated as a percentage of your investment. That means a percentage of the assets you accumulated and the growth you received as a result of the risk you took on goes to the product provider. This billing model was so ubiquitous that nobody ever questioned its validity, never mind offering an alternative.
OUTvest changed all that. If it costs a product provider the same amount of effort to manage R300,000 as it does to manage R2m, why does the person with more assets have to pay a higher fee? OUTvest is the first provider in the country, and quite possibly the world, who charges only one flat rate for all investments under R2m.
In the video below, OUTvest’s Grant Locke explains exactly what impact this has on your investments over time.
This fee structure is truly revolutionary in financial services. In South Africa, it is the cheapest product available for investments over R800,000. This might sound like a lot, but in the context of retirement savings it’s likely that you’ll hit that amount sooner than you think.
This is the retirement product of choice for the Just One Lap team, which is why we have selected OUTvest as our preferred partner for retirement annuity products.
If you’re using OUTvest because of our work, please let them know.