When do you want to stop working?
Nobody ever really ‘retires’ but everybody wants to achieve financial independence. Your vision of financial independence will be unique, and what you need to do to reach that milestone will depend on your current situation and plans. Our Financial Planners can assist you in building a plan towards that goal.
Most employers in the UAE do not offer a workplace pension scheme to employees. A pension is a pot of money that you and your employer both contribute towards to fund your retirement. Without a pension system in the UAE, it is up to you to take responsibility for your savings. We can help you plan and put the foundations in place for you to build that retirement pot, whether through structured savings or ad hoc contributions. We will build the solution around you, giving you confidence for the future.
Financial independence means having enough income to no longer need to work. Once you have accumulated your wealth and saved enough money to generate a ‘passive income’, you have reached financial independence. Typically, most people achieve this later in life, and without proper planning it can take a long time to reach this point. Financial independence allows you the freedom to choose your income and your lifestyle.
Wealth accumulation is the process of setting aside and saving some of your earnings for the purpose of using it in later life. Done on a regular basis, usually monthly, with a risk-adjusted investment strategy, you can become disciplined in saving towards your goal whilst your money benefits from investment growth and dollar cost averaging.
If you have already accumulated savings in cash but want to receive a better return than you are getting from your bank account, then you may benefit from a lump sum strategy. This involves investing a portion of your capital in one go and adding to it on an ad hoc basis. Lump sum investments benefit from compounding growth over the long-term. Often, earlier entries into investments lead to greater compounding growth.