Help clients invest in their children's education with RL360 PIMS
Every parent wants to give their child the best start in life – a safe home, encouragement to grow, and the right education. A good education doesn’t just open doors; it helps children build confidence and pursue their dreams.
RL360’s PIMS (Personal Investment Management Service) is a flexible lump sum investment plan that can help your clients prepare for those future education costs – from private schooling to university tuition, or both.
HOW IT WORKS
PIMS is a whole-of-life investment plan. Your clients invest a lump sum, which then grows in a tax-efficient way until they need to draw on it. They can choose from a wide range of investment options – managed portfolios, global markets and collective funds – and decide whether to manage it themselves or appoint a professional adviser.
The aim is simple: to grow their money faster than inflation and make their capital work harder than it would sitting in a bank.
CASE STUDY: PLANNING AHEAD FOR CLARA
Felix and Lucy, who live in the UAE, have just welcomed their daughter, Clara. They want to secure her future and are thinking ahead to how they’ll pay for her education.
They already have savings – around USD 300,000 – sitting in a bank account earning minimal interest. Their financial adviser suggests investing the sum into PIMS, using the firm’s balanced managed strategy. The target growth rate is 7–8% a year.
Let’s look at what this could mean for Clara’s future:
- Private education (starting in 5 years): USD 12,000 per year, rising 3.5% annually for 14 years → USD 283,000 total
- University (4 years): USD 50,000 per year, also rising 3.5% annually → USD 211,000 total
That’s about USD 494,000 over 18 years.
Assuming a steady 7% annual return, after paying these education costs, Felix and Lucy could still have around USD 400,000 left in the PIMS plan after 23 years – enough for Clara’s first home, or other family goals.
WHY PIMS WORKS FOR FAMILIES
- Flexibility – Add more funds as their income grows.
- Easy access – Withdraw money whenever they need it for school or university fees.
- Ongoing growth – The remaining balance keeps earning returns even after withdrawals.
- Tax efficiency – No annual tax on investment growth.
- Adaptability – Switch investment strategies as markets change, without tax penalties.
- Portability – If they move abroad, their plan moves with them.
INVESTING IN PEACE OF MIND
By acting early, Felix and Lucy have built a dedicated education fund that grows with their daughter. They’ve also secured flexibility, growth and reassurance about her future.
An investment in PIMS gives your clients:
✓ Confidence their child’s education is funded
✓ Access to their money whenever needed
✓ A diversified, growth-focused strategy
✓ Portability as their life and career evolve
✓ A long-term nest egg for their family’s future