Perhaps one of the things many of the women I know have in common when it comes to finances is not saving.
They blame it on the shopping temptations, body maintenance, and fancy dinners on weekends.
Beyond all that, they still have a desire to save. Although our the government provides its Emirati employees with an excellent retirement package, it does not mean that they should not be saving on the side for unforeseeable circumstances.
Fulfilling a retirement vision calls for considerable planning, and women, unlike men, have different circumstances to consider.
For one, they generally tend to outlive men, which means that they will need health care for longer.
In addition, during their careers, they often take more time out of the workforce to care for newborns, or sick family members, which has an effect on their savings.
When I asked older women, around the age of 40 to 50, about what they wish they had done differently regarding their finances, they said they wished that they had carefully planned their retirement and saved more early in their careers.
Though it is never too late to start planning your retirement, keep in mind these mistakes and try to avoid them:
Ÿ Not setting out goals. I don't know about you, but I can certainly imagine my retirement years spent with my loved ones in a house by a beach somewhere. But it is important to keep in mind that planning a retirement requires having more details, such as: When do I want to stop working? Where would I want to live? How much money do I want to have in the bank?
Ÿ Beware of starting late, taking saving breaks, and cashing out. Saving during the good times is probably one of the best gifts you could give your future self. As pressed as you may find yourself, try not to cash out your retirement savings. It is preferable to dedicate a separate bank account for them.
Ÿ This takes us to not saving for long enough. The average life expectancy of a woman is 80 years, and men at 75 years, which means that a woman will need more access to funds for health care and other expenses, especially with consumer prices increasing every year.
Ÿ Depending too much on your home value. Suppose your house is in a great location, and because of that it has survived real-estate market turmoil and price drops. You still cannot completely depend on that as a subsidy to your fund plan. Count it as a component of your overall retirement plan, but not as a sole factor to it.
Ÿ Saving for your children's college education ahead of your retirement plan. I am not encouraging anyone to be selfish, but many tend to save for their children's college education ahead of their retirement plans. When it comes to children, there are many options, such as grants, scholarships, and loans to finance tuition, but not as many options when it comes to your retirement plan. That does not mean you should not save money for your children, but prioritise your retirement plan first.
Ÿ Investing too traditionally. Many women tend to invest conservatively, mostly in fixed-income. Though this might somehow guarantee that they will not lose their investments, there is also a risk for not having real growth. Investment diversification will not only aid in a faster investment growth, but also minimise the risk against the ups and downs of the economy and having all your money in one place.
Ÿ Last but not least, it is best to consult a professional financial adviser who could provide you with the best retirement options that would suit your career and lifestyle and who would be able to assist you in putting together a retirement plan.
Manar Al Hinai is an award-winning Emirati fashion designer and writer based in Abu Dhabi
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
So what is Spicy Chickenjoy?
Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
IPL 2018 FINAL
Sunrisers Hyderabad 178-6 (20 ovs)
Chennai Super Kings 181-2 (18.3 ovs)
Chennai win by eight wickets
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Kanguva
Director: Siva
Stars: Suriya, Bobby Deol, Disha Patani, Yogi Babu, Redin Kingsley
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
Results
3pm: Maiden Dh165,000 (Dirt) 1,400m, Winner: Lancienegaboulevard, Adrie de Vries (jockey), Fawzi Nass (trainer).
3.35pm: Maiden Dh165,000 (Turf) 1,600m, Winner: Al Mukhtar Star, Adrie de Vries, Fawzi Nass.
4.10pm: Handicap Dh165,000 (D) 2,000m, Winner: Gundogdu, Xavier Ziani, Salem bin Ghadayer.
4.45pm: Handicap Dh185,000 (T) 1,200m, Winner: Speedy Move, Sean Kirrane, Satish Seemar.
5.20pm: Handicap Dh185,000 (D) 1,600m, Winner: Moqarrar, Dane O’Neill, Erwan Charpy.
5.55pm: Handicap Dh175,000 (T) 1,800m, Winner: Dolman, Richard Mullen, Satish Seemar.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia