Best investment plan – Do’s and Don’ts

Many people think that the best investment plan is the one with the highest return and the lowest risk. Nothing could be further from the truth.

Regardless of the economic environment, there is an universal truth which dictates that ‘High risk = High Return’ and ‘Low Risk = Low returns’. On the flip side the fact also remains that, ’High risk = High Losses’ and ‘Low Risk = Low losses’.

Traditional low risk vehicles include sovereign bonds, treasury notes etc., while traditional ‘higher risk’ vehicles include shares, equities, corporate bonds, mutual funds, futures, forex, etc… Other asset classes such as commodities, precious metals, rare earth metals, energy, infrastructure, can be classified in different risk bands.

The best investment plan uses a diversified portfolio

Diversification is the most common technique used by investors to manage investment risk. When you want to invest in any investment plan, focus on the variety of underlying funds available for choice. Always consider your financial advisor’s opinion, and do your due diligence as well.

5 ways in which you can structure the best investment plan for yourself.

• Asset diversification- this type of diversification is where your investment is spread over various asset classes with various risk levels.
• Geographical diversification- Location greatly affects assets. This is mainly because every country has different factors affecting their economy such as currency, petroleum prices, level of industrial development or availability of resources.
• Sector diversification and number of holdings- Market trends affects and differ from country to country, it is a good idea to watch which sector is doing well in the particular country.
• Time diversification- A simple way to reduce risk is to invest for the long term. Taking a long term view allows your investment more time to grow and possibly makes up for any short term fluctuations.
• Alternative investments-these types of investments provide positive returns regardless of market direction. Word of caution, DO NOT invest in something you cannot understand.

Other factors that should be considered in choosing the best investment plan

The term of the investment plan makes a difference

The amount of time you have remaining to achieve your goals should also dictate the risk profile of your investment portfolio. e.g. short term plans should not have very high percentages of high risk asset classes. Longer term plans should be structured for higher risk in the beginning and move towards safer assets as the maturity nears.

Charges are important when selecting the best investment plan

When choosing the best investment plan suited to your needs, you should look at the charging structure carefully. Some investment plans collect their charges up-front. Others spread the charges out evenly. Generally the lower the charges, the better.

Again, taking the advice of an independent financial advisor is very important in order to understand the different investment plans available in the market.

Qualified independent financial advice is important

Its your hard-earned money !!! Don’t work with tied agents or banks, they just cannot offer you impartial advice. Use the services of our independent financial advisors. Just fill out the form below and we will help choose the best investment plan for you.

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Get Life Insurance while you can

Who can Get Life Insurance?

You would be surprised to know that not all people can get life insurance all the time. While most people can get life insurance

Get Life Insurance

when they are healthy, there are number of factors that determine if a person can get life insurance or not. Some of the factors that govern your ability to get life insurance are described below -

• Can I get life Insurance if I have a medical problem? A lot of people who has undergone medical problems understand the necessity of having a life insurance policy. It is still possible for individuals suffering from medical ailments to get life insurance but at slightly higher premiums than the usual life insurance policy. Some companies even offer policies for particular medical ailments such as diabetes.
• Can I get life insurance without undergoing physical examination?-Yes, there are some policies that doesn’t require medical examination in order to qualify for a life insurance. But bear in mind that this types of policy doesn’t have high returns as normal life insurance policies have. The most important thing before buying is researching the best policy that suits your needs.
• Can be insured if I am engaged in a hazardous profession? Ideally you should get your cover before you take up a hazardous profession. This is because many companies will not insure individuals who are engaged in hazardous professions such as skydiving, car racing, soldiers, etc. But there are cases in which the life insurance companies may consider insuring you with higher premiums.
• Can I be insured if I travel to war affected countries? Again the answer depends on which countries you visit regularly. Countries such as Afghanistan, Iraq, Yemen are often excluded in life insurance policy schedules.
• Is there an age limit to getting life insurance? Age is not an issue. As long as you have the ability to pay the premiums, it doesn’t matter if you are 20 or 70 years old.
• How old should I be before considering getting life insurance? Most life insurance policies offer the benefit of locking in your premium for the rest of your life. The older you start the more expensive it gets. Preparing for disaster early on is the best practice. No one can determine what our future maybe, so having a plan is more beneficial.
• Why should I buy life insurance? Life insurance is your security for the future. As I have said earlier, in life there is nothing that is certain so preparing beforehand is considered the best practice.
• Where do I buy life insurance? There are numerous ways possible to get life insurance. You go online, the yellow pages, insurance broker or get life insurance directly from the life insurance company. The best place to get life insurance is to contact a independent financial adviser.
• Why should I compare quotes before purchasing life insurance?- when you decide to get life insurance, it is considered best practice to research different offers  and see which policy is more beneficial to you as the buyer before buying. It is also a good way find the most affordable life insurance policy that suits you and your family’s financial needs.

Get Life Insurance Now!

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Life Insurance Companies in Dubai

There are a number of reputed international Life Insurance Companies in Dubai.

Life Insurance Companies in Dubai

I have only listed the life insurance companies in Dubai which have a registered office in the UAE. The insurance laws in the UAE are very strict about protecting the rights of UAE residents. Only Life insurance companies in Dubai that maintain a registered office in the UAE are allowed to do business.

List of Life Insurance Companies in Dubai

1. Zurich International Life
2. ACE Life Insurance Co.
3. Friends Provident International
4. Generali International
5. Royal London 360

More about Life Insurance Companies in Dubai

Zurich International Life

Zurich International Life (Zurich) offers life assurance, investment and protection solutions throughout the world* with licensed offices in the United Arab Emirates, Hong Kong, Bahrain, Qatar, Singapore and Taiwan.

Ace Life Insurance Company

ACE LIFE Middle East & Africa is a proud member of the ACE Group of companies, a global leader in insurance and reinsurance. The ACE Group currently employs more than 16,000 people and has a physical presence in 53 countries.

Friends Provident International

Friends Provident International provides competitive life assurance, pensions and investment products for Asia, the Middle East, Europe, the UK and other selected markets, and is part of the Friends Life group. Friends Life group is the name used to describe Friends Life Group plc and all subsidiaries of that company. Also in this group is Friends Life, which was launched in March 2011.

Generali International

Long-established in the international financial services field, Generali International specialises in providing a range of powerful and flexible wealth management products to help their customers around the world achieve their financial ambitions.

Royal London 360

Headquartered in the Isle of Man, one of the world’s leading offshore financial jurisdictions, Royal London 360° was established through the merger of Scottish Life International Insurance Company Limited and Scottish Provident International Life Assurance Limited. The company has combined industry experience of over 30 years, and funds under management in excess of US$3 billion*.

How to choose from the Life Insurance Companies in Dubai

Each of the above-mentioned Life Insurance Companies in Dubai have very well-known products that differ in many different ways from each other.

Enter your contact details in the form below for impartial and FREE advice about the right company for your needs.

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Term Life Insurance or Whole Life Insurance

Which is best for you?

Whether it be term life insurance or Whole life insurance, replacing one’s income in the case of death, disability or critical illness is

Term Life Insurance

very important, especially if you have one or more people depending on your income. For individuals who are in the process of choosing life insurance policies, the search would eventually lead to two choices; Term Life Insurance and Whole Life Insurance. In this article I would like to try to make the choice easier for you.

For those who are in a tight budget and would still like the protection and security provided by having a life insurance policy, then term life insurance should work for you. Term life insurance is widely popular due to the fact that they are affordable and fits any average workers financial needs. The downside to term life insurance is the fact that they only offer protection and is not a suitable investment option.

For those looking for an investment option aside from financial security provided by having a life insurance policy, then whole life insurance is for you. Whole life insurance is rather more expensive than term life insurance. This is due to the fact that a portion of your premium is added to your policy investment fund.

Term Life Insurance Benefits

Generally both term life insurance and whole Life insurance offer similar benefits but the key benefits of a term life insurance policy are detailed below:

1. Death Benefits -
• Death Cover – A predetermined lump sum is paid out to the policy owner’s nominated beneficiaries in the event of death due any cause except suicide.
• Accidental death cover – If the policy owner dies due to an accident, an additional lump sum is paid out apart from the death cover.
• Aeroplane cover – An additional lump sum is paid in the case of the policy owner dying in a plane accident.
2. Living Benefits
• Critical Illness Cover – A predetermined lump sum is paid out to the policy owner in the event of the policy owner suffering from any of the critical illnesses mentioned in the policy schedule such as heart attack, cancer, multiple sclerosis, deafness, blindness etc…
• Total Permanent disability – A predetermined lump sum is paid out to the policy owner in the event of the policy owner suffering from total permanent disability.
• Terminal illness benefit – If the life assured has less than one year to live the death cover is paid out in advance to allow the policy owner to set his affairs in order.

Most popular reasons for taking out term life insurance

1. Mortgage protection – People who have mortgages generally take out a term life insurance for the term of the mortgage to ensure that the property that is mortgaged does not get attached by the mortgage provider in the event of the policy owners death.
2. Protect higher university costs for children – People who are saving for their child’s higher education costs generally take out a term life insurance policy to cover this expense in the event of their death.
3. Buying property in the future – People who intend to buy a property in the future go for term life insurance because it makes getting a mortgage easier if the lender knows that his risk is covered by a policy that pays him the outstanding amount of the mortgage in case of the policy owner’s death.

Would you like to know which Term Life Insurance Policy is best for you?

Just enter your contact details in the form below to find out.

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What is Life Insurance?

Buying life insurance may be one of the most important decisions you’ll ever make. In the event of a tragedy, the assured payout can help pay the bills, continue a family business, finance future needs like your children’s education, protect your spouse’s retirement plans, and much more.

What is life insurance anyway?

There are a few variations of life insurance policy. In this article, we will try to further understand the different types of Life insurance policies available:

• Term Life insurance-The most popular type of life insurance policy is called Term Life Insurance. The term life insurance provides coverage for a specific and stated period of time. This type of life insurance is a very popular choice for a policy because it can be purchased for an inexpensive premium. The way this insurance works is that you are covered by the policy for the time period specified.

• Whole life insurance polices, on the other hand,  are attached to a cash value system where part of the regular contributions are invested in funds of your choice and grow with time. If the cash value is high enough to sustain the policy, it can be used to pay the premiums.

If you want to get a professional and un-biased opinion for free, enter your details in the form below and I will discuss it over coffee with you.

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Pension Retirement Plans Dubai

Pension Retirement Plans

One of the realities of life is that, at some point, everyone has to stop working and retire. For some, this is a golden opportunity to enjoy their golden age and do things they couldn’t do while they were busy working and raising a family.

For others, however, having no pension retirement plan prepared can be a very scary prospect, with no more work and expenses continuing to increase. Even though work stops, the truth is that life doesn’t.

Factors to consider – Pension Retirement Plans

The most important factor in planning out your retirement income is to plan ahead- the sooner you start to plan, the better. When you are in the prime of your career where you are receiving a steady income, you should begin to put money aside to have a source of income when you retire.

This can be done by diversifying your sources of income – small investments that yields income will eventually add up when you retire to provide you with a comfortable living.  If you are frugal you may find that your retirement income is actually more than enough to live by.

Choosing Pension Retirement Plans

Pension retirement plans are very important in the retirement planing process and are viewed, wrongly by many, to be the sole means to achieve an appropriate sustainable income in retirement.

There are several ways to back-up your pension retirement plans and in doing so, it is feasible to have a more financial security.

1. Begin Saving Now! The earlier a Pension retirement plans is looked into the better. It is much better to start one at twenty than it is at forty. The longer you save, the more you will receive when you retire.
2. How much must I put in? The simple answer is as much as you can afford. However, it is worth bearing in mind additional forms of savings for retirement, such as investing in stocks and shares.

Managing our funds and having personal stability is definitely an essential matter for a number of us. When we spend so much time trying to earn money, its good to know that our income is working hard for us too.

Probably the most vital factor in our wealth management that requires necessary consideration is our Pension Retirement Plans. After a lifetime of non-stop work to earn income, we want to have the assurance that we can relax in our retirement with enough funds to take full advantage of it.

There are a number of pension schemes available to help us to do this. It is good idea to seek financial advice on  Pension Retirement Plans that are suited to our financial needs.

Need Help Preparing For Your Pension Retirement Plans?

If you want to get a professional and un-biased opinion on your Pension Retirement Plans for free, enter your details in the form below and I will discuss it over coffee with you.

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Education Plan – Dos and Don’t s

When doing finan­cial plan­ning, one of the most impor­tant top­ics of dis­cus­sion is how to create the right education plan for your child..

Education plan - Dos and Don'ts

The cost of edu­ca­tion is on the rise, advanc­ing far in excess of the infla­tion rate. There­fore, it is essen­tial to plan for the future by starting an education plan for your children as soon as possible.

As a par­ent of a naughty 4-year old, the first thing I did when he was born was to start an education plan to help me save for the higher education fees that I would have to bear around 18-20 years later.

I started the education plan with the pur­pose of having a dis­ci­plined monthly com­mit­ment – an assur­ance, that by the time my son is of ter­tiary edu­ca­tion age, there will be a sum ready for him to pur­sue fur­ther stud­ies, whether locally or overseas.

When to start your child’s education plan

Some may ask how soon they should start the plan­ning process. The sim­ple answer is as soon as pos­si­ble.

Starting an edu­ca­tion plan­ involves an invest­ment strat­egy that specif­i­cally addresses the edu­ca­tional needs of your chil­dren. It’s impor­tant to start sav­ing early to reduce the funds required by tak­ing advan­tage of the power of com­pound­ing over time.

Important Factors to consider when starting your child’s education plan

Plan ahead when starting an education plan

Designing the right edu­ca­tion plan­ is a long-drawn process; the time period could range from 15 to 20 years. Start to pri­ori­tise your finances early to give your­self a head-­start. This allows you to ben­e­fit from the com­pound­ing effect of money and the flex­i­bil­ity to change course accord­ing to your lifestyle changes.

Your invest­ments will also ride out the volatil­ity of dif­fer­ent mar­ket cycles over a longer period.For exam­ple, my wife and I started our son’s edu­ca­tion plan even before the birth of our son, and we worked out the finances and the amount that would be needed to fund his future edu­ca­tion. We took into con­sid­er­a­tion whether we wanted a local or over­seas education. We had to rework our pri­or­i­ties and expenses to cater for this change.

Invest­ment options for your education plan.

One of the most pop­u­lar choices among young parents is to buy an endow­ment education plan. This is a prod­uct that cov­ers two objec­tives – sav­ings and pro­tec­tion.

For exam­ple, a 30-year-old par­ent plans to buy a 20-year edu­ca­tion plan for his new­born baby boy. His monthly pre­mium of about $450 (for sum assured of $100,000) would poten­tially bring him an approx­i­mate pol­icy matu­rity value of $200,000. Even if this par­ent is to just set aside $100 each month towards such a plan for 20 years, it is likely to gen­er­ate a pol­icy matu­rity value of approx­i­mately $40,000 – enough to cover tuition fees in a local university.

On the other hand, par­ents who are savvy with finances will con­sider starting an education plan that par­tic­i­pat­es in the equity mar­ket for a poten­tially higher upside. Some will go for high div­i­dend stock while oth­ers look to cap­i­tal growth. Regular savings plans with offshore funds can cater to those who wish to par­tic­i­pate in the mar­ket with­out hav­ing to actively man­age the port­fo­lio.

Cou­pled with a protection/savings and invest­ment strat­egy, this can be an ideal choice for par­ents to achieve their goals. There­fore, early plan­ning pro­vides flex­i­bil­ity and the oppor­tu­nity to opti­mise risk return on the strat­egy cho­sen. We chose a savings/protection education plan while putting aside funds to invest reg­u­larly in the mar­ket in a few hand-picked high-dividend stocks.

Protect your education plan.

Many couples overlook the protection aspect when starting their child’s education plan. Life is about eventualities and risk. The risk of dying to soon and leaving your family to fend for themselves and the risk of living too long and having to save for your expenses. While the savings education plan takes care of the ‘living too long problem’, parents should take out a separate term insurance that ensures that their children can have the best education even if they are not around or die too soon for any reason.

Being dis­ci­plined with the education plan.

Not every fam­ily can afford to invest a lump sum to finance a child’s edu­ca­tion years down the road. There­fore, hav­ing the dis­ci­pline to save on a monthly basis, often through a reg­u­lar savings/investment plan, is a good strat­egy to begin with. Stay focused as it is often easy to find excuses to dip into the sav­ings if you do not have a ded­i­cated account or strategy.

There is a sense of com­fort and peace of mind know­ing that children can secure their pre­ferred edu­ca­tion choices down the road. All it takes is early plan­ning, a com­fort­able and real­is­tic sav­ings and invest­ment strat­egy, and more impor­tantly, dis­ci­pline in keep­ing to the finan­cial com­mit­ments set aside for the edu­ca­tion plan.

Finding the Best Education Plan That Corresponds to Your Financial Needs

Are you looking for an Education Plan that can guarantee and secure your child’s future? If so, we can help. Please enter your details on the  form below and I will discuss it over coffee with you.

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Financial Advisors in Dubai

Many expats in Dubai arrive here with great plans for a better lifestyle and higher standard of living. In fact many of

Financial Advisors Dubai

them get the lifestyle they are after, and enjoy it so much that they forget that need to plan their finances and goals for the long term.

There are a number of financial advisors in Dubai who can be consulted to help you plan your finances.

Good financial advisors are the ones who are not affiliated with any particular provider. They should not have a vested interest in pushing a particular provider’s products to you. On the contrary they should act on your behalf and choose products that best suits your needs.

Obviously this can only happen if the independent financial advisors are affiliated with a broker and not providers directly.

So it is in your interest to confirm this fact prior to meeting with them. The other advantage of dealing with independent financial advisors as opposed to bank representatives who offer the same products is – independent financial advisors almost always do a comprehensive analysis of your personal financial situation as compared to a bank representatives who just ask you if you need their insurance and/or savings products.

What can Independent Financial Advisors do for you?

Generally independent financial advisors don’t charge for their services in Dubai. Also there is absolutely no obligation on your part to make any kind of buying decision at any time if you don’t want to.

Good independent financial advisors will meet you twice -

1. In the first meeting, they will explain the concept of financial planning which revolves around the four quadrants i.e. Family Welfare and Protection, Retirement Planning, Children’s Education and Lifetime Goals and Aspirations.
2. They also help you identify your goals, commitments and priorities during this meeting and highlight any problems with your current financial situation.
3. If you agree that you need help with any particular area in your current financial situation, they will aim to provide you a solution in the second meeting.
4. Prior to the second meeting, the independent financial advisors search the market on your behalf for a financial solution, customized around your personal financial situation and budget.
5. During the second meeting they presents to you the solution which according to their experience is best for you.
6. It is only at this time that you make a decision whether to take action or not without any obligations whatsoever.

Review Meetings with Independent Financial Advisors

Good independent financial advisors will regularly meet you at least twice a year to review the performance of the financial solution they provided you. If you have purchased a protection plan through them, the independent financial advisors will meet you probably every six months to ensure that your protection needs haven’t changed.

If you have purchased a savings or investment plan, the independent financial advisors will meet you every six months to ensure that your investment plan is performing at the rate you want. If not he will suggest appropriate actions such as fund switching to keep you in line with your targets.

Organizational support and Customer Service

Organizational support and after-sales customer service is very important when choosing independent financial advisors for your financial needs. Good independent financial advisors will have a solid brokerage organization supporting them in the background to ensure you get the best service even if they leave the organization.

Where to find good financial advisors

If you are considering utilizing the aid of professional financial advisors to help you with your investments and personal financial planning, we can help. Please fill in your contact details in the form below and we will contact you for a free 30-minute Financial Consultation.

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Term Insurance in Dubai

Understanding your insurance needs

Every individual is distinct. Even identical twins have their own distinct characteristic that tells them apart. The same goes with every person. Our profile, money-wise, is different. Choosing the right life insurance policy is an individual choice based on personalized individual factors.

The right insurance policy for me may not be the right terms for you. This is why choosing the right insurance policy will involve evaluating the different types of life insurance policy available and seeing which one fits your requirements. The majority of us have to think in terms of acquiring the life insurance policy that matches our financial capabilities.

Differentiating Your Insurance Policy

If you are planning to buy an insurance policy for yourself, there are several things you need to consider. Insurance providers charge you premiums based on your health and age.

There are several types of life insurance policies where we can take advantage of. They are the whole term life insurance policy, the mortgage insurance policy, the health insurance policy, the universal life insurance policy and many more.

Term insurance is a life insurance policy that pays out a specific amount when the insurance policy owner dies or becomes terminally ill. It provides ease of mind to the insurance policyholder knowing that their loved ones, after their death, will be financially secure.

Mortgage insurance is an insurance policy protecting lenders from the potential default of borrowers. This is an insurance policy which compensates lenders or investors for losses due to the failure of payment.

Health insurance policy is insurance against the risk of incurring medical expenses among individuals

Universal life insurance policy is a type of permanent life insurance based on a cash value.

Choosing the right policy involves evaluating the diverse types of life insurance policy available and seeing which one fits your requirements. Understanding these types of Life Insurance Policy can help you decide which one corresponds to your financial status and needs.

Is It the Right Insurance Policy for Me?

Term Insurance Plan

Term insurance also known as short-term insurance coverage, are insurance policy you renew after expiry. Term Insurance covers a specific period of time – normally the policy will run for periods of 5, 10, and 20 years.

Most term insurance policy providers offer insurance protection that covers up to the age of 100. Insurance policy providers charge you based on your health and age. Term insurance is basically a security measure that you provide to your loved ones whom you leave behind.

When you buy a life insurance policy to cover you for only a certain number of years, the insurance policy provider offer you different types of payment options to pay your coverage. So how long should your term insurance policy be? Your health status and age needs to be taken into account when choosing the right term insurance policy.

If you are near retirement and is expecting to have a huge retirement fund, then short term insurance policy is more appropriate for you. When you are evaluating a term life insurance policy, you have to take into consideration who you will be helping with the plan itself and their needs. Looking into different options for term life insurance can help to ensure that you are receiving the best term insurance policy for your money.

Want to Learn More About Term Insurance?

If you want to get a professional and un-biased opinion on your Term Insurance needs for free, enter your details in the form below and I will discuss it over coffee with you.

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Investment Portfolio

Investment Portfolio- Diversified Portfolio

Starting an investment?  What is an investment portfolio anyway? By definition, an investment portfolio is “a collection of financial assets such as stocks, bonds, property and cash”. An Investment Portfolio may be held by individual investors and/or managed by financial experts, hedge funds, banks and other financial institutions”.

Having a good diversified investment portfolio is something that everyone, who does any kind of investing, needs. Diversifying your investments is a good idea, especially in the event that one area of your investments takes a loss. By focusing your investments in only one area of the market, you are more prone to run into a larger loss if that part of the market does poorly during a given time period. By diversifying your investments, the profitable investments can make up for the poor ones. This allows you to weather out tough times as they say.

Investment Portfolio- How to have a Diversified Portfolio

Diversified Investment Portfolio

One of the most important principles followed by most investors is Diversification.  Diversification is a method used by investors to combine a number of investments together to reduce investment risk. Listed below are several types of investment diversification.

Asset diversification- this type of diversification is where investment is grouped in asset classes. These asset classes vary but they typically consist of the following

• Cash or money market
• Bonds or fixed interest
• Equities i.e. company shares or stocks
• Alternative funds e.g. real estate, commodities, and hedge funds.

Geographical diversification- Assets differ greatly depending on their current location. This is due to the fact that every country has different factors affecting their current state such as currency, economy or industrial development.

Sector diversification and number of holdings-Market trends and conditions often favor one sector over the other.  Market trends affects and differ from country to country, it is a good idea to watch which sector is doing well on the particular country.

Time diversification- A simple way to reduce risk is to invest for the long term. Taking a long term view allows your investment more time to grow and possibly make up for any short term fluctuations.

Alternative investments- Alternative investments have become more readily available. Typically these funds try to provide positive returns regardless of market direction; these include

• Real estate
• Commodities
• Absolute returns funds – including hedge funds
• Long/short funds

Investment Portfolio- Benefits of Having a Diversified Portfolio

It is difficult to predict which asset classes, sectors or geographies will perform well. Diversification is a key tool in managing investment risk. Choosing the right spread of investments to create a diversified portfolio will help to reduce risk yet also increase the chance of exposure to investment gains.  Wise investors spread their investments to lessen the effects of any poor performance of one part of their investment portfolio.

We can help with your Investment Portfolio and Financial planning

If you want to get a professional and un-biased opinion on your investment portfolio for free, enter your details in the form below and I will discuss it over coffee with you.

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