Elie Irani, a 49-year-old Lebanese national in the UAE, started investing at the age of 42 and is on track to achieve financial freedom in five years.
He invests exclusively in low-cost exchange-traded funds (ETFs) and automates his saving and budgeting strategies.
“The main factor that will determine how fast you could retire is not what you invest in,” says Mr Irani, who’s been in the UAE for 20 years.
“The major determining factor in how soon you could retire is the percentage of your salary that you save and invest. It’s called saving rate. The higher your saving rate, the earlier you could reach financial independence, or retire.”
While his professional background lies in information technology, Mr Irani has a personal mission to spread financial literacy.
He founded Wise Investor Middle East, a blog and YouTube channel about saving and investing for financial independence. He is also involved in the SimplyFI Common Sense Personal Finance and Investing Facebook group as a contributor and moderator, and is also a member of UAE – Grow Your Finances, another Facebook group.
What was your first job and salary?
I started as an IT support engineer in Lebanon in 1995 on a monthly salary of $600. After 10 years, I moved to the UAE to join a multinational IT company.
Tell us about your current role
I help businesses implement my company’s cyber security, networking and firewall solutions.
Do you manage to save?
I've been saving and investing consistently for the past seven years and plan to reach financial independence in my mid-50s. The first thing to do before you invest is to pay off high-interest debt, such as credit cards because they charge an annual interest of 45 per cent in the UAE. I pay for everything with my credit card, but at the end of each month, I have an automatic settlement set up for my card payment.
Then, build an emergency fund, which is three to six months’ worth of living expenses to sustain yourself in case of a job loss, medical emergencies or a huge car repair.
The best way to save is to pay yourself first. I have a few bank accounts. As soon as I receive my salary, I have standing instructions arranged with the bank to distribute the monthly income in my salary account to different accounts in the percentages that I want. I have separate accounts for my emergency fund, savings, rent payment, travel and leisure, and large payments, such as car registration or car maintenance.
I tend to plan upfront for big spending I foresee in the year by transferring a small portion each month to a dedicated account. What's left in my primary account is used to pay for utility bills, petrol, etc. You need to track your expenses for some time to set up this system.
I try not to fall prey to lifestyle inflation. I'm neither thrifty nor extravagant. I'm somewhere in the middle.
What asset classes do you invest in?
I invest 50 per cent of my monthly income exclusively in a balanced ETF portfolio of world stocks and world bonds. I believe in global diversification and am not comfortable betting on a single country or a single industry.
My favourite DIY trading platforms are Interactive Brokers and Swissquote. For someone who doesn’t want to go the DIY route, they can automate their savings with Sarwa, which will automatically invest the money in a portfolio of low-cost ETFs for a small fee. But you can trade for much cheaper if you do it on your own.
After reading more than 30 books on personal finance, I noticed a recurring pattern to avoid high-fee investments. Hedge funds or mutual funds are unable to beat index funds or ETFs over the long term. Fees compound over time. Over an investment timeframe, which is typically 20 to 30 years, 1 per cent in fees will cost you thousands of dollars in terms of total cost.
During 2020, I used the money set aside for travelling to invest in crypto coins. But this was money I was willing to lose.
Have you purchased property?
I have purchased property in my home country, but not in the UAE. This is intended to be my retirement property, but it was an emotional decision.
I have nothing against real estate investment. I'm in team rent as opposed to team buy because I don’t believe that renting equates to throwing money down the drain.
Do you have any debt?
I have a small car loan. I was forced to take the loan because my previous car was caught in last year's rains, so I had to replace it. But it was not a smart financial decision because a car is a depreciating asset. For those looking to make the most bang for their buck, a smart decision would be buying a car that’s two to three years old, in great condition and possibly under warranty, and paying for it in cash.
My credit card bills are paid off automatically each month and I don’t have to think about it.
Growing up, were you taught how to handle your finances?
No. All I was taught was to score good grades in school and land a high-paying job. No one taught me that the way to building wealth is by acquiring assets and investing. The earlier you start, the better. I did not start early. But it's never too late.
Most people think that if they start in their 40s, they just have 20 years left. That's not true because although you have 20 years for accumulating wealth, you don't pull out your investments when you stop working. That's a big mistake most people make. You keep the money invested all the time and only withdraw enough each year to cover your living expenses. My investment timeframe is my entire lifetime. I started investing when I was 42 and will keep investing until the day I die.
Do you worry about money?
I used to worry about money until I figured out my expenses a few years ago. I didn’t know what would happen to me if I stopped working in the UAE because we don't have proper pension. I worried whether my savings would sustain my retirement. These worries triggered my search for answers. I came across good personal finance books and learnt about index investing and ETF investments.
What are your best money saving hacks to offset inflation?
Three most common ways to generate passive income streams are by investing in the financial markets, properties or building a business. In my case, the best way to beat inflation is investing in a portfolio of ETFs.
What are your financial goals?
I don't have any short-term financial goals because I know exactly what I spend each year and save for these as I go. For the long term, my goal is financial freedom.
What is your idea of financial freedom?
Financial freedom is a state where you don't rely on a paying job to pay for your expenses. You could get passive income from rent, a business or stock market investments.
There’s a simple formula to attain financial freedom: if you have 25 times your annual expenses, or 300 times your monthly expenses, invested in a portfolio of ETFs, you could safely draw down 4 per cent each year and cover your retirement expenses.
Do you want to be featured in My Salary, a weekly column that explores how people around the world manage their earnings? Write to pf@thenationalnews.com to share your story
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When Umm Kulthum performed in Abu Dhabi
Known as The Lady of Arabic Song, Umm Kulthum performed in Abu Dhabi on November 28, 1971, as part of celebrations for the fifth anniversary of the accession of Sheikh Zayed bin Sultan Al Nahyan as Ruler of Abu Dhabi. A concert hall was constructed for the event on land that is now Al Nahyan Stadium, behind Al Wahda Mall. The audience were treated to many of Kulthum's most well-known songs as part of the sold-out show, including Aghadan Alqak and Enta Omri.
Killing of Qassem Suleimani
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INFO
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
TICKETS
For tickets for the two-day Maharlika Pilipinas Basketball League (MPBL) event, entitled Dubai Invasion 2019, on September 27 and 28 go to www.meraticket.com.
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F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
UAE currency: the story behind the money in your pockets
Gran Gala del Calcio 2019 winners
Best Player: Cristiano Ronaldo (Juventus)
Best Coach: Gian Piero Gasperini (Atalanta)
Best Referee: Gianluca Rocchi
Best Goal: Fabio Quagliarella (Sampdoria vs Napoli)
Best Team: Atalanta
Best XI: Samir Handanovic (Inter); Aleksandar Kolarov (Roma), Giorgio Chiellini (Juventus), Kalidou Koulibaly (Napoli), Joao Cancelo (Juventus*); Miralem Pjanic (Juventus), Josip Ilicic (Atalanta), Nicolo Barella (Cagliari*); Fabio Quagliarella (Sampdoria), Cristiano Ronaldo (Juventus), Duvan Zapata (Atalanta)
Serie B Best Young Player: Sandro Tonali (Brescia)
Best Women’s Goal: Thaisa (Milan vs Juventus)
Best Women’s Player: Manuela Giugliano (Milan)
Best Women’s XI: Laura Giuliani (Milan); Alia Guagni (Fiorentina), Sara Gama (Juventus), Cecilia Salvai (Juventus), Elisa Bartoli (Roma); Aurora Galli (Juventus), Manuela Giugliano (Roma), Valentina Cernoia (Juventus); Valentina Giacinti (Milan), Ilaria Mauro (Fiorentina), Barbara Bonansea (Juventus)
The specs
Engine: 5.2-litre V10
Power: 640hp at 8,000rpm
Torque: 565Nm at 6,500rpm
Transmission: 7-speed dual-clutch auto
Price: From Dh1 million
On sale: Q3 or Q4 2022
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Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
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UAE currency: the story behind the money in your pockets
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
Poacher
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Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Killing of Qassem Suleimani
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
More from Neighbourhood Watch:
Mohammed bin Zayed Majlis
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
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Reputation
Taylor Swift
(Big Machine Records)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
More from Armen Sarkissian
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
