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The first step towards Financial independence and peace starts with Personal Financial Planning. Financial Planning can be defined as the process of telling your money what to do instead of wondering where it went… While many are concerned about the financial Independence and security, few take the steps necessary to accomplish their financial goals. Those who do not appreciate the importance of Financial Planning, keep wondering throughout their earning life and after, on where all the money they earned went? I have assisted many families in Dubai in setting up their Personal Financial Plan, which includes small and consistent steps towards Financial Peace and Independence. If you are one of the few people, who are determined to do what it takes, to achieve Financial Independence, then I am sure you will find my services useful. Call me now on +971502285405 to take your first step towards Financial Independence and Peace, or subscribe to my mailing list on my blog www.financialplannningindubai.com, to receive regular updates on various articles I post on this blog.
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Financial Planning in DubaiAn
Introduction
Meeting Agenda
Meeting should take about 40 minutes
About Damodhar Mata
About Nexus Insurance Brokers LLC
Introduction to Personal Financial Planning
Key Money Questions
About Damodhar Mata
Independent Financial Adviser with Nexus Insurance Brokers LLC
More than 12 years experience in Financial services and Banking industries.
Worked with Barclays and Mashreq Bank in UAE and with Citibank and ABN Amro in India
Active blogger, networker, amateur photographer, Occasional reader, and Social Media enthusiast.
About Nexus Insurance Brokers LLC
Nexus are the largest independent financial advisory (IFA) firm Present in the Middle East, for over 20 years, with award winning services and global standards.
Previously being the tied distribution arm of Zurich International Life, we have licensed offices in Abu Dhabi, Bahrain, Dubai and Qatar.
Quadrants of Life
• Family Welfare and Protection
Securing dreams
and fulfilling Promises
Who knows what tomorrow will bring, protecting yourself and your family against unforeseen circumstances is something everyone should consider. This could be protecting against premature death, providing for dependents or protecting against the loss of earnings due to serious illness
Life’s Changing Patterns
Just one upset can mean disasterHouse Retirement
Quadrants of Life
Even though UAE’s per capita income at Dh178,351, or $48,597 (2011 estimates by International Monetary Fund) makes its residents the sixth-richest in the world, a majority of the country’s residents plan to work even in their golden years as most believe they cannot count on a comfortable retirement after a lifetime of hard work.
• Retirement Planning
• Family Welfare and Protection
Securing dreams and
fulfilling Promises
Financial Independence
Happy Retirement
Freedom and financial independence in retirement is one of the most valuable assets you can possess
Life Expectancy probability
Freedom and financial independence in retirement is one of the most valuable assets you can possess
If you’re 65 today, the probability of living to a specific age
Source: Society of Actuaries, “Key Findings and Issues, Longevity: The Underlying Driver of Retirement Risk” 2005 Risks and Process of Retirement Survey Report, July 2006
80 years 90 years 100 years0%
20%
40%
60%
80%
100%
75%
37%
4%
65%
24%
2%
91%
52%
6%
Three Musketeers
Source: J.P. Morgan Asset Management. The above example is for illustrative purposes only and not indicative of any investment.
Susan, 25 Years old
Invests $ 5,000 PA for 10 years.
Total Investment $ 50,000
Bill, 35 Years old
Invests $ 5,000 PA for 30 years.
Total Investment $ 150,000
Chris, 25 Years old
Invests $ 5,000 PA for 40 years.
Total Investment $ 200,000
Lets find out who is smart?
Smart Musketeer !
The key to happy retirement is in starting early and staying invested
Understanding the power of compounding can greatly
impact the amount of savings over the long term
Common misconceptions
• I am still young, I can always catch up….
• I don’t have enough for today, how can I plan for retirement ?
• I will sell my house….• My business will support my
retirement……• My children will support my
retirement……• I will spend less during
retirement
Quadrants of Life
A good education is an investment for the future. The return is almost impossible to estimate. But regular saving to provide for your children’s education takes discipline and habit.
• Education Planning
• Retirement Planning
• Family Welfare and Protection
Securing dreams and
fulfilling promises
Financial Independence
Children's Future and Wellbeing
The falling rupee – how does it affect me?
6/1/
1995
10/1
/199
6
2/1/
1998
6/1/
1999
10/1
/200
0
2/1/
2002
6/1/
2003
10/1
/200
4
2/1/
2006
6/1/
2007
10/1
/200
8
2/1/
2010
6/1/
2011
10/1
/201
2
-45.00%
-40.00%
-35.00%
-30.00%
-25.00%
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
INR/USD
Rupee has depreciated by more than 40 % since 1995, posing huge exchange risks to NRI investors.
Assuming you had 1,00,00,000 INR in a term deposit growing at 7.00 % PA in 1995, it would be INR 3,37,99,322.76, in 2012 and if the same investment was made in dollars growing at 7.00 % its equivalent INR value would be 5,57,59,897.45
The falling rupee – how does it affect me?
1/1/
1995
1/1/
1997
1/1/
1999
1/1/
2001
1/1/
2003
1/1/
2005
1/1/
2007
1/1/
2009
1/1/
2011
0
10000000
20000000
30000000
40000000
50000000
60000000
INR Vs. USD returns
INR based investmentUSD based investment
Valu
e o
f in
vestm
ent
• Crude Oil, Gold and Coal Imports
• India’s growing population, means growing energy requirements, which results in higher crude oil and coal imports
• Due to the falling rupee, individuals, corporates and even Indian government are investing in Gold to hedge their currency risks, resulting in increase on gold imports
• More imports means more dollars being paid out, widening the balance of payments, and thus depreciating the rupee further
Why is rupee depreciating?
Quadrants of Life
Dreams can become reality with planning.
• Education Planning
• Thinking Big and making it !
• Retirement Planning
• Family Welfare and Protection
Securing dreams and
fulfilling promises
Financial Independence
Children's Future and Wellbeing
Aspirations and Life time dreams
How much will I Need?
How long do I have? How much can I contribute towards these goals?
Key Money Questions
What is the next step?
Lets Solve the Puzzle……….
Confidential Financial Review
