Recently, I’ve been reviewing my investment portfolio and reflecting on how being in my 50s has influenced my investment approach.
Age is, after all, a crucial factor when managing your investments.
From taking calculated risks in your youth to ensuring a stable income in retirement, let’s explore how to tailor your investment strategy to different life stages.
The starter portfolio (ages 20-30)
In your 20s, time is on your side, but you need to get started. Time invested is the number one determinant for success in the markets, so take advantage of this period. The earlier you start, the better.
It's an ideal time for high-growth investments with higher risk, setting up your emergency fund, and learning to live your best life, all while saving and investing for the future.
You can afford to take more risks now because, even if you make some bad choices (and you will), you still have plenty of time to recover and build your wealth. That’s the reality.
During this decade, you will probably learn this lesson the hard way; I did.
After building an emergency fund of six months’ expenses, a simple sample portfolio for someone like this might be heavily weighted towards exchange-traded funds and stocks.
Keep it diversified and focus on areas where you have above-average understanding or can gain expertise. This might include emerging technologies and start-ups balanced with some traditional larger companies that provide stability.
For example, investing in tech companies like Tesla or companies on the cutting edge of today's technology boom, like Nvidia, might make sense.
Riskier or more volatile assets, such as cryptocurrencies like Bitcoin or Ethereum, can also represent a small but potentially rewarding portion of the portfolio.
Primetime investing (ages 31-50)
As you move into your 30s and 40s, financial responsibilities typically increase. Many are managing family costs, buying homes, and saving for children’s education, which underscores the need for a stable yet growing financial base.
Your risk tolerance is now likely shifting. Not for everyone naturally, but you really need to think about what your goals are and what type of risks you can stomach.
It would not be uncommon for a person in this age group to keep the same asset allocations they had in their 20s.
This is a key conversation you need to have with yourself. If you decide on a more balanced approach, your portfolio might now include 60 per cent stocks, such as blue-chip companies like Apple and Aramco, while keeping growth in mind with ETFs like QQQ.
The rest of your portfolio, about 40 per cent, could be balanced between high-risk products and conservative investments.
A larger investment in real estate, physical properties, and yield-based products like bonds, sukuk, and term deposits can also be added to the mix.
In my case, in my 30s, I was earning like crazy and spending like crazy. I didn’t see an exotic sports car I didn’t like, a high-end watch whose sparkle didn’t catch my eye. But these are critical years, so don’t take them for granted.
Nearing retirement (ages 51-65)
Approaching retirement, the focus generally shifts towards preserving capital and preparing for a steady income in retirement.
Reducing exposure to volatile stocks, risky assets and increasing investment in yield-bearing products might be something to look into.
Shifting towards utility stocks like Dubai Electricity and Water Authority, which offer more stability and regular dividends, and more substantial holdings in sukuks, municipal bonds or Treasury securities, could be a good way to protect your wealth from market fluctuations.
After all, no one can predict exactly when the market will decline or when the world economy will enter a major recession, so portfolios with no more than 50 per cent equity exposure are quite common.
You don’t want significant sell-offs in the equities markets to push your retirement out a decade just before you hit 65, so actively managing the equity part of your portfolio is critical.
I have about half of my portfolio in an actively managed selection of technology stocks.
I believe technology is expanding faster than ever, especially in areas like AI and chip manufacturing, and this will be highly promising over the next decade. While this might not be a typical portfolio for someone my age, it’s what my risk appetite has determined.
Investing wisely in retirement (ages 65+)
Once retired, ensuring that your savings last is paramount. Investments should be conservative, with a focus on income generation and capital preservation.
High-grade sukuk, corporate bonds, government securities, and dividend aristocrats like Procter & Gamble or Emaar, which have a long history of stable dividend payments, are advisable.
High-yielding term deposits, depending on the interest rate environment, might also be an option, along with maintaining a small portion in equities to hedge against inflation.
What will you do with your money in retirement? That’s on you. As for me, I plan on spending it!
Muhammad Rasoul is chief executive of neo-broker amana
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Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
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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
Asia Cup Qualifier
Venue: Kuala Lumpur
Result: Winners play at Asia Cup in Dubai and Abu Dhabi in September
Fixtures:
Wed Aug 29: Malaysia v Hong Kong, Nepal v Oman, UAE v Singapore
Thu Aug 30: UAE v Nepal, Hong Kong v Singapore, Malaysia v Oman
Sat Sep 1: UAE v Hong Kong, Oman v Singapore, Malaysia v Nepal
Sun Sep 2: Hong Kong v Oman, Malaysia v UAE, Nepal v Singapore
Tue Sep 4: Malaysia v Singapore, UAE v Oman, Nepal v Hong Kong
Thu Sep 6: Final
Asia Cup
Venue: Dubai and Abu Dhabi
Schedule: Sep 15-28
Teams: Afghanistan, Bangladesh, India, Pakistan, Sri Lanka, plus the winner of the Qualifier
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Who is Mohammed Al Halbousi?
The new speaker of Iraq’s parliament Mohammed Al Halbousi is the youngest person ever to serve in the role.
The 37-year-old was born in Al Garmah in Anbar and studied civil engineering in Baghdad before going into business. His development company Al Hadeed undertook reconstruction contracts rebuilding parts of Fallujah’s infrastructure.
He entered parliament in 2014 and served as a member of the human rights and finance committees until 2017. In August last year he was appointed governor of Anbar, a role in which he has struggled to secure funding to provide services in the war-damaged province and to secure the withdrawal of Shia militias. He relinquished the post when he was sworn in as a member of parliament on September 3.
He is a member of the Al Hal Sunni-based political party and the Sunni-led Coalition of Iraqi Forces, which is Iraq’s largest Sunni alliance with 37 seats from the May 12 election.
He maintains good relations with former Prime Minister Nouri Al Maliki’s State of Law Coaliton, Hadi Al Amiri’s Badr Organisation and Iranian officials.
How to register as a donor
1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention
2) There are about 11,000 patients in the country in need of organ transplants
3) People must be over 21. Emiratis and residents can register.
4) The campaign uses the hashtag #donate_hope
Zayed Sustainability Prize
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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The years Ramadan fell in May
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.
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Important questions to consider
1. Where on the plane does my pet travel?
There are different types of travel available for pets:
- Manifest cargo
- Excess luggage in the hold
- Excess luggage in the cabin
Each option is safe. The feasibility of each option is based on the size and breed of your pet, the airline they are traveling on and country they are travelling to.
2. What is the difference between my pet traveling as manifest cargo or as excess luggage?
If traveling as manifest cargo, your pet is traveling in the front hold of the plane and can travel with or without you being on the same plane. The cost of your pets travel is based on volumetric weight, in other words, the size of their travel crate.
If traveling as excess luggage, your pet will be in the rear hold of the plane and must be traveling under the ticket of a human passenger. The cost of your pets travel is based on the actual (combined) weight of your pet in their crate.
3. What happens when my pet arrives in the country they are traveling to?
As soon as the flight arrives, your pet will be taken from the plane straight to the airport terminal.
If your pet is traveling as excess luggage, they will taken to the oversized luggage area in the arrival hall. Once you clear passport control, you will be able to collect them at the same time as your normal luggage. As you exit the airport via the ‘something to declare’ customs channel you will be asked to present your pets travel paperwork to the customs official and / or the vet on duty.
If your pet is traveling as manifest cargo, they will be taken to the Animal Reception Centre. There, their documentation will be reviewed by the staff of the ARC to ensure all is in order. At the same time, relevant customs formalities will be completed by staff based at the arriving airport.
4. How long does the travel paperwork and other travel preparations take?
This depends entirely on the location that your pet is traveling to. Your pet relocation compnay will provide you with an accurate timeline of how long the relevant preparations will take and at what point in the process the various steps must be taken.
In some cases they can get your pet ‘travel ready’ in a few days. In others it can be up to six months or more.
5. What vaccinations does my pet need to travel?
Regardless of where your pet is traveling, they will need certain vaccinations. The exact vaccinations they need are entirely dependent on the location they are traveling to. The one vaccination that is mandatory for every country your pet may travel to is a rabies vaccination.
Other vaccinations may also be necessary. These will be advised to you as relevant. In every situation, it is essential to keep your vaccinations current and to not miss a due date, even by one day. To do so could severely hinder your pets travel plans.
Source: Pawsome Pets UAE
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