If last year taught us anything, it is the importance of having a solid contingency plan in place, especially for one’s finances following the economic challenges of the Covid-19 pandemic.
As the first few months of the year bring with them a renewed and positive spirit, more and more people will be looking to refocus their priorities to prepare for the year ahead. In the context of personal finances, it is an opportune time for some housekeeping. Here are a few key considerations we encourage people to look into:
Learn about ESG investing
The worldwide disruption caused by Covid-19 has resulted in numerous effects on the environment and climate. The global reduction in modern human activity, such as air travel, has caused a large drop in air pollution and water pollution in many regions.
However, it is worth considering whether this record drop is a short-term impact of the pandemic or if now is the time to play a proactive role in making this the “new normal”. Look at your portfolio and direct capital to environmental, social and governance (ESG) investments that reflect your values and make a real difference.
Design a legacy plan
Approximately $30 trillion in wealth is set to change hands in the next decade and women are poised to inherit a sizeable share, according to a study by McKinsey.
By planning your legacy, you can provide for your loved ones and determine where you want your wealth to go, paving the way for the next generation.
Assess your financial risk appetite
Our risk appetite can change over time; it can increase or decrease. While making any investment, it is essential that you evaluate your risk appetite carefully.
When thinking about investment risk, you need to consider financial factors such as inflation, volatility, interest rates, time horizon and investment allocation. Is your level of investment risk reflected well in your financial plans for the year?
Set your budget
Everyone needs a budget. It helps you prepare for retirement and emergencies, realise your financial goals and ensures you don’t spend money you don’t have.
Is your money allocation on track to cover all your financial needs, whether you are saving and investing, buying property, travelling, dining out, or purchasing luxury goods, art or cars?
Entrepreneurial aspirations
Whether you are looking at buying, selling or evolving your business over 2021, maximising your liquidity and managing your wealth will be key to success.
Current trends
With the continuation of working from home, many people are leveraging this period as a time of reflection. They are moving forward with plans that have been on the backburner for a long time. They have also been interested in learning more about ESG investing.
The dawn of a new year is traditionally a time to continue good practices or review areas in your life for improvement, including your wealth and finances. No matter your financial goals, the most powerful tool at your disposal is a plan.
It is important to regularly review your wealth and financial needs all year round, but a small change in behaviour today could make all the difference to your future. So, stay invested.
Ali Hammad is the market head of private banking for the Middle East and North Africa at Standard Chartered Private Bank
Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 268hp at 5,600rpm
Torque: 380Nm at 4,800rpm
Transmission: CVT auto
Fuel consumption: 9.5L/100km
On sale: now
Price: from Dh195,000
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
Get Out
Director: Jordan Peele
Stars: Daniel Kaluuya, Allison Williams, Catherine Keener, Bradley Whitford
Four stars
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Need to know
When: October 17 until November 10
Cost: Entry is free but some events require prior registration
Where: Various locations including National Theatre (Abu Dhabi), Abu Dhabi Cultural Center, Zayed University Promenade, Beach Rotana (Abu Dhabi), Vox Cinemas at Yas Mall, Sharjah Youth Center
What: The Korea Festival will feature art exhibitions, a B-boy dance show, a mini K-pop concert, traditional dance and music performances, food tastings, a beauty seminar, and more.
For more information: www.koreafestivaluae.com
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
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SPECS
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Sholto Byrnes on Myanmar politics
