After working as an investment banker for financial institutions such as JP Morgan and Barclays for 14 years, Hannan Moti decided to teach children to code and founded iCodejr, an online coding and robotics academy, in the UAE in 2021.
The start-up was established to close the gap within the conventional school curriculum for Stem (science, technology, engineering and mathematics) subjects.
“We realised that there is a huge gap between what students are learning in Stem in places like the UAE and India, compared to the US, where they are so much further ahead. Schools here are not teaching Stem effectively,” says the 39-year-old Indian expat.
“We're venturing into building programmes where we can edify students on the value of money, how to spend effectively and how to save in gamified way. The idea is that we start them early, because with money, it's always about the law of compounding.”
A London School of Economics alumnus, Mr Moti has a master’s degree in finance and management from Mumbai and was born and raised in the UAE.
“I've been deeply rooted in the finance and investment space. It's an interest that I developed very early on. In fact, I started trading at the age of 16,” he says.
He lives with his wife, who works in the events industry, and 18-month-old daughter in Jumeirah Lakes Towers, Dubai.
He is an avid golfer and also dedicates time to mentor younger start-ups in the education technology space.
What was your first job and salary?
My first job was as a portfolio performance analyst with JP Morgan in Mumbai in 2007 before I moved to New York with them. I was earning 25,000 Indian rupees ($283) per month at the time. My salary in New York was around $5,500.
What is your income now?
We raised a $50,000 angel round in 2022. We are looking to raise funds in the next six to nine months, but our main focus right now is to firm up our revenue. While initially we focused more on profitability, we realise that we need to raise investment. The best way to do that is to firm up our revenue, so we have had to sacrifice our profitability a bit.
I’ve kept my salary to a minimum of Dh10,000 ($2,722) per month because I have built enough of a nest egg through my banking career. I am only using my salary to cover my day-to-day expenses while my investments compound and grow naturally.
Do you manage to save?
Not now. Currently, my savings are down to between 8 per cent to 10 per cent of my monthly income. That amounts to roughly Dh800 to Dh1,000 that goes towards systematic investment plans for mutual funds.
What asset classes do you invest in?
I invest in mutual funds directly. I predominantly invest in mid-to large-cap equities because I have a relatively higher risk appetite now. Around a quarter of my portfolio is allocated to debt funds, which are fixed-income funds, 25 per cent in gold, and the remaining 50 per cent are in mid-to-large cap equities.
Besides mutual funds, I also directly invest in equity. In the US, I use Interactive Brokers to buy FANG stocks in the companies Meta, Alphabet, Netflix and Google. I also buy equities in India in blue-chip companies like Tata Group and Reliance.
Have you purchased property here or in your home country?
I bought the one-bedroom apartment I live in JLT in 2021 for Dh750,000 because I sensed an opportunity. I took out a mortgage for it. I have also inherited property in India.
Do you have any debt?
I just have the mortgage that I pay off from my monthly income from the company.
Have you ever inherited a sum of money?
I’ve never inherited money, just real estate in and around Mumbai. I am trying to liquidate a holiday home in Lonavala, which is a hill station close to Mumbai, while I rent the apartments in Mumbai.
I read [Robert T Kiyosaki and Sharon Lechter's] Rich Dad Poor Dad in 2010 and since then, I'm always encouraged to make my money work for me. So, if I see real estate that’s empty, I try to maximise its potential and rent it.
Growing up, were you taught how to handle your finances?
There was never any formal education. But my parents did a great job of inculcating the value of money, how to spend effectively, how to be thrifty and derive value. While they may not have financially educated me on how to make investments, they taught me about how money can go a long way if preserved and spent correctly.
I've lost money trading on leverage, trying to make a quick buck. I made all those mistakes when I was young, but you learn from your mistakes.
What are your major monthly expenses?
Predominantly fixed expenses such as utilities and mortgage. Beyond that, everything is variable. I anticipate some large expenses coming through towards tuition fees.
How do you budget your expenses every month?
Beyond paying for utility and mortgage and setting aside 8 per cent to 10 per cent for monthly savings, everything else goes towards our day-to-day living expenses and our lifestyle.
Have you started saving for retirement?
I've got a comfortable 12-month runway where I can manage expenses should everything come down to zero. This also includes a nest egg to pay off my mortgage. I prefer not to do this because interest rates are low in the UAE, whereas your yield on investments are rather high. So, it makes sense to pay a mortgage.
But if you ask me about retirement, I have no inclination to retire at any point.
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What do you spend your disposable income on?
It's usually on lifestyle expenses, such as taking a holiday or staycation, eating at a good restaurant and spending time with people I care about. I believe that if I have planned for my investments, beyond that, I would like to create memories rather than acquire materialistic things.
Do you worry about money?
Every now and then, I have some thoughts around not having enough in the bank, because that's just human nature. But on most days, I don't worry about money.
What are your money saving hacks to offset inflation?
A well-diversified portfolio does that for you. Most fixed income instruments will beat inflation. I don't make term deposits as they will not beat inflation. But if you invest in blue-chip bonds, equities or even gold, they have beaten inflation most years.
Currently, I'm happy with my portfolio allocation as those assets beat inflation most years. Over time, as my risk appetite reduces, my portfolio would be inclined to high-yield government bonds. I foresee that when I cross the age of 50 or 60. But with a higher risk appetite, you always end up beating inflation.
What are your financial goals?
I don't have personal financial goals. It is aligned with my venture. We are looking at a $20 million post-money valuation after our Series A round, which we're planning in the next three to four years. With a seed round next year, we're looking at a $5 million valuation, at which point I would potentially look to dilute some owner’s equity.
What is your idea of financial freedom?
Not having to think twice before spending on something that helps make life more comfortable. For me, financial freedom would be if I could comfortably afford business class for a holiday with my family or stay in a hotel of my choice rather than having to budget for a lesser one because finances don't permit.
Do you earn passive income?
Passive income is mostly through capital gain growth in my portfolio, but in most cases it’s notional gains while occasionally it’s realised gains. I also earn rental income from the inherited properties, but I give this to my mother.
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