How to Invest your savings in UAE?

Many ex-pat investors; beginners, in particular, find investing as a very confusing activity; given the extended range of options to choose from.

Stocks, Bonds, Mutual funds, Index Investing, ETFs, Real Estate, Commodities, ULIP's, Endowment Plans, Alternative Investments are just a few asset classes to consider.

Also, the wide spectrum of sectors, geographies, and currencies makes investing more confusing.

Tyranny of Choice is a phrase that describes the confusion created by plenty of options, leading to procrastination and inaction.

Over-choice or choice overload is a cognitive process in which people have a difficult time making a decision when faced with many options. - Wikipedia

For some people starting an Investment is more complicated than rocket science, as they continue to be perplexed, by complicated investment jargon, unscrupulous investment advice, volatile markets, and tax implications.

The Internet and the Media make things more difficult, literally drowning us with information, and depriving us of unbiased ideas of practical application.

How to Invest?

Investing can be intimidating. Having said that I’ am not discouraging you, because anyone who is doing great with his investments today, was once struggling.

Anyone, who is now a top investor was once naive and perturbed!

Quoting Brian Tracy, one of my favorite success gurus; 

“Everybody who is at the front  of the buffet line of life started at the back of the line." 
Now here is the question: How do you get to the front of the buffet line of life, where all the good stuff is waiting for you?
The answer is simple. It consists of two key steps:
  1. First, get in line!
  2. Second, stay in line!
It is absolutely amazing the number of people who want to get to the front of the buffet line of life, who admire or envy the people who are already up there enjoying the best that life has to offer, but they don’t get up and get in line themselves.
They don’t realize that life, like a buffet, is self-serve."

So the key learning is to take the first step, as the Nike slogan says ” Just do it”

Just Do It - Nike-1

Where do I start? - (Getting in Line)

The best thing you can do when you are starting to invest is to develop a habit of disciplined saving and regular investment, instead of waiting for the right time or brooding forever on the perfect investment strategy.

Your savings however small does not matter, what matters the most is the decision to save and invest regularly. 

If you are a beginner and you feel that you need a little help in setting up an investment, don’t wait just call me at +97150-2285405 or click here to arrange a meeting with me.

"Just Do It" doesn't mean, that you should start an investment, completely oblivious or ignorant, of the facts and figures. You must do the necessary due diligence before you start. You must plan and align your investments to your personal and financial goals.

Click here to know more about Holistic Financial Planning and here to know the 3 Bucket Investment Strategy

Systematic Investment Plan(SIP)

What is a SIP? 

A SIP or a Systematic Investment Plan enables you to invest a fixed amount regularly in a fund.

A regular savings plan / Systematic Investment Plan(SIP) from reputed companies like MetLife,  Zurich International Life, Salama, Oman Insurance, are a few options for both beginners and experts of the investment world.

These offshore plans are tax-efficient and portable. They can help you build a robust portfolio of international investment funds to achieve your investment objectives.

Also read: Which is the best way to invest money in 2021- Lump-sum or SIP in UAE?

Make time your best buddy - (Staying in Line)

The longer your funds are invested, the bigger your investment grows into. The long-term return on Mutual Funds, Stocks, and Bonds, have always been positive, hence you don’t have to worry too much, about the inherent market risks.

Now let’s compare the following investment choices of Susan, Bill, and Chris towards their Retirement;


Susan is 25 years old, and she invests $ 5,000 for 10 years towards her retirement and remains invested till her retirement age of 65 (Total Investment of $ 50,000)

Bill is 35 years old and he invests $ 5,000 for 35 years till his retirement age of 65 (Total Investment of $ 150,000)

Chris is 25 years old, and he invests $ 5,000 for 40 years till his retirement age of 65 (Total investment of $ 200,000)

Benefit of starting to invest early - Financial planning in Dubai

Susan in spite of investing the least has largely benefited by the Power of Compounding, retiring with a bigger retirement kitty than Bill, who although invested a higher amount had to retire with lesser funds than Susan.

Chris on the other hand, has the biggest retirement saving, as he started early, and continued to save and invest throughout his earning life, enabling him to afford a better retirement than Susan and Bill.

The difference between Susan and Bill is a staggering $189,000, in spite of Susan, having invested $ 100,000 less than Bill.  By starting 10 years earlier than Bill, Susan gave her investment more time to grow, and more compounding cycles...

The lesson learned is “Starting late on investing is very costly”

Getting started is what is important. If you sit around forever waiting to perfect your investment style, you’ll never get started and miss out on the power of compounding over the years.

The Power of Compounding – Learn how it multiplies your Money - Watch this interesting video.

Don't Play Maiden Overs...

Each year that you delay in getting your investment started, puts you behind your retirement run rate.

As in One-day Cricket, if you are chasing a steep target, you cannot wait for the slog overs to start scoring, you have to keep the scoreboard ticking with the ones and twos, and an occasional boundary. 

Every year which goes past without investing will put more pressure on you and at some point, you are more likely to give up the chase.

Even if you are playing from behind, Start now and don't play maiden overs...

Arrange a Free Consultation to start investing today.

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