The passage of time feels like it creeps, then pounces: Suddenly, party conversation focuses on real estate, how we are going to bed earlier and our realisation that we have no idea what type of jeans to wear.
For years, millennials have been the target of financial jokes: “They spend all their money on lattes and avocado toast!” and “Why don’t they get a minimum wage job to pay for college like I did?” But the cliches got old quickly.
And now, as millennials move deeper into their thirties and forties, there are some things to consider changing up. Most notably, their investments.
Your portfolio might need to chill
For those lucky enough to invest early on, the advice was pretty standard: Invest often, and invest in aggressive assets to take advantage of long-term growth.
Maybe the most aggressive of us dipped our toes in cryptocurrency and meme stocks at some point. After all, you have got all the time in the world to ride out the highs and lows of the market when you are 24.
But now, we are more mature. And with that wisdom comes new responsibilities, such as adjusting our asset allocation.
Asset allocation is simply a fancy phrase for what percentage of your portfolio is in each investment.
For example, a 20 year old’s investment portfolio of $100 (for easy maths), might be 90 per cent in stocks and 10 per cent in bonds, or $90 and $10, respectively.
As you get closer to retirement, it is a good rule of thumb to shift that allocation to a less risky position, such as 60 per cent stocks and 40 per cent bonds, although the exact percentages will depend on your personal financial situation.
“In general, as we get older we tend to take fewer risks,” says Aaron Hatch, a certified financial planner and founder of Woven Capital in California.
“In your early twenties, when you have nothing to lose and time on your side, you can afford to take all kinds of risks. However, as we millennials accumulate assets and we inch towards retirement, it might be worth considering taking a little risk off the table by slightly decreasing exposure to stocks or other risky investments.”
Shifting strategies
One easy way to figure out if it is time to shift your asset allocation is to look at model portfolios. You can consider these illustrations and adjust yours accordingly.
For example, if you are 30 and planning to retire when you are 65, you could check out portfolios that show what a target-date fund looks like for those retiring in 2060.
You may see a majority of stock-based funds with about 10 per cent in bonds. If you are in your forties, that recommended portfolio may be closer to 15 per cent in bonds.
Model portfolios can be helpful, but they are not perfect. Maybe you own a chunk of cryptocurrency or some property. These kinds of investments should be considered when shifting your assets.
What happens now matters in retirement
When you are shifting your asset allocation now, it pays to think strategically about your future.
“The types of accounts an individual has when they retire, along with their cash needs, should determine their withdrawal strategy in retirement. It is important to keep taxes in mind when deciding from which account types to pull money for living expenses in retirement,” Mr Hatch says.
Think ahead to retirement. When you sell your investments so you can have spending money in retirement, you will likely have to pay capital gains tax on those earnings.
But if you know you will need to pay taxes on that money, it is worth calculating what you will owe and setting it aside.
And you may still need to be invested throughout retirement, says Marigny deMauriac, a financial planner and founder of deMauriac, a financial planning company in New Orleans.
“Since you might live to be in your nineties, chances are you can’t just shift everything to cash and call it a day,” Ms deMauriac says.
“Most people need to plan for growth in their accounts to outpace inflation, even in retirement.”
Asset allocation, like many of the chores of millennial middle age, may not feel glamorous, but it may help us pay for all that avocado toast we will enjoy in retirement.
RUGBY CHAMPIONSHIP FIXTURES
September 30
South Africa v Australia
Argentina v New Zealand
October 7
South Africa v New Zealand
Argentina v Australia
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
Petrarch: Everywhere a Wanderer
Christopher Celenza,
Reaktion Books
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
The years Ramadan fell in May
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
The specs
Engine: 4.0-litre, six-cylinder
Transmission: six-speed manual
Power: 395bhp
Torque: 420Nm
Price: from Dh321,200
On sale: now
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2-litre%204-cylinder%20petrol%20(V%20Class)%3B%20electric%20motor%20with%2060kW%20or%2090kW%20powerpack%20(EQV)%0D%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20233hp%20(V%20Class%2C%20best%20option)%3B%20204hp%20(EQV%2C%20best%20option)%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20350Nm%20(V%20Class%2C%20best%20option)%3B%20TBA%20(EQV)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3EMid-2024%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3ETBA%0D%3C%2Fp%3E%0A
More from Rashmee Roshan Lall
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%20Dual%20electric%20motors%20with%20102kW%20battery%20pack%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E570hp%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20890Nm%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERange%3A%3C%2Fstrong%3E%20Up%20to%20428km%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh1%2C700%2C000%3C%2Fp%3E%0A
What is type-1 diabetes
Type 1 diabetes is a genetic and unavoidable condition, rather than the lifestyle-related type 2 diabetes.
It occurs mostly in people under 40 and a result of the pancreas failing to produce enough insulin to regulate blood sugars.
Too much or too little blood sugar can result in an attack where sufferers lose consciousness in serious cases.
Being overweight or obese increases the chances of developing the more common type 2 diabetes.
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
PROFILE OF INVYGO
Started: 2018
Founders: Eslam Hussein and Pulkit Ganjoo
Based: Dubai
Sector: Transport
Size: 9 employees
Investment: $1,275,000
Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri
Day 1 results:
Open Men (bonus points in brackets)
New Zealand 125 (1) beat UAE 111 (3)
India 111 (4) beat Singapore 75 (0)
South Africa 66 (2) beat Sri Lanka 57 (2)
Australia 126 (4) beat Malaysia -16 (0)
Open Women
New Zealand 64 (2) beat South Africa 57 (2)
England 69 (3) beat UAE 63 (1)
Australia 124 (4) beat UAE 23 (0)
New Zealand 74 (2) beat England 55 (2)
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The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Spider-Man: No Way Home
Director: Jon Watts
Stars: Tom Holland, Zendaya, Jacob Batalon
Rating:*****
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MOTHER%20OF%20STRANGERS
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What is 'Soft Power'?
Soft power was first mentioned in 1990 by former US Defence Secretary Joseph Nye.
He believed that there were alternative ways of cultivating support from other countries, instead of achieving goals using military strength.
Soft power is, at its root, the ability to convince other states to do what you want without force.
This is traditionally achieved by proving that you share morals and values.
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