UAE financial adviser knows how to look after his own money

Money and me: Darren Lyons puts his own financial focus on his young son's future.

Darren Lyons is an independent financial adviser who moved to the UAE to raise a family. Jeffrey E Biteng / The National

Darren Lyons has been a financial adviser for 23 years and knows the industry inside out. The Briton, 48, moved to the UAE five years ago after visiting Dubai as a tourist and deciding it was the perfect place to bring up a family.

Describe your financial journey so far?

As a youngster my upbringing was not a wealthy one, so money was important but more from a family point of view. I didn’t have a lot as a kid, so I want to make sure Freddie, my 5-year-old son, doesn’t want for much. I have always put money aside but I also think you should enjoy it if you have it. I hold some bank investments, along with some stocks and shares. I have always paid into a pension in the UK and accrued a reasonable amount. I moved that fund to the UAE to give me maximum flexibility and the option to decide on an appropriate retirement date.

Are you a spender or saver?

I’m a spender who likes to save. I am always looking to place some money away for the medium to long term. But I also think you should enjoy the time and money that you have here. Don’t save everything – what’s the point of saving for a future if it makes the present unpleasant?

Is money important to you?

Very important, and I like to ensure that I do not take undue risks with either my own money or my clients’ money. If you apply the logic of ‘risk versus reward’ to both your own money and the client’s, then it keeps it in perspective. You want savings to be disciplined and that discipline is a good thing to learn early. So much money can be wasted if you don’t look after it. You certainly notice a massive amount of disposable income being spent here. I hope those people are saving with the same diligence as partying.

Have you made any financial mistakes along the way?

No, except for investing a huge amount of money in a rally car venture when I drove it in the UK in the early 1990s. It was a passion, but taught me a huge financial lesson. I don’t regret that as I knew the risks and enjoyed the experience, and I learnt a lot from it. Some may call it a mistake but I loved every second and would probably do it again.

What is your philosophy towards money?

Enjoy what you have, but ensure you put a bit aside. Don’t chase the best-performing fund, ensure your portfolio is well diversified and avoid illiquid funds. Many people think that when you sign up for a savings plan it is written in cement, but a lot of products allow a portability inside the wrapper that gives you the chance of changing the risks or the likely return.

If you won Dh1 million, what would you do with it?

Invest it in a steady fund that gives a 6 to 8 per cent return, for a return of about Dh70,000 per year. Keep the capital secure and use the money to enjoy holidays with the family.

What has been your biggest financial lesson?

Never be too adventurous, always keep something for a rainy day (not a good Dubai metaphor, I know), and if it sounds too good to be true it probably is.

What do you like to spend your money on?

My wife and my son, as we made a joint decision to come out here, and we always do everything for his benefit. He is in a great location, is developing well and we will not lose sight of that. We are planning for his higher education and the costs associated with it. I also like golf so often at the weekend I have a long business meeting that I can’t alter – it takes about five hours, usually.

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