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
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Killing of Qassem Suleimani
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
Honeymoonish
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Mobile phone packages comparison
57%20Seconds
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Section 375
Cast: Akshaye Khanna, Richa Chadha, Meera Chopra & Rahul Bhat
Director: Ajay Bahl
Producers: Kumar Mangat Pathak, Abhishek Pathak & SCIPL
Rating: 3.5/5
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
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The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
More coverage from the Future Forum
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
Disability on screen
Empire — neuromuscular disease myasthenia gravis; bipolar disorder; post-traumatic stress disorder (PTSD)
Rosewood and Transparent — heart issues
24: Legacy — PTSD;
Superstore and NCIS: New Orleans — wheelchair-bound
Taken and This Is Us — cancer
Trial & Error — cognitive disorder prosopagnosia (facial blindness and dyslexia)
Grey’s Anatomy — prosthetic leg
Scorpion — obsessive compulsive disorder and anxiety
Switched at Birth — deafness
One Mississippi, Wentworth and Transparent — double mastectomy
Dragons — double amputee
Six large-scale objects on show
- Concrete wall and windows from the now demolished Robin Hood Gardens housing estate in Poplar
- The 17th Century Agra Colonnade, from the bathhouse of the fort of Agra in India
- A stagecloth for The Ballet Russes that is 10m high – the largest Picasso in the world
- Frank Lloyd Wright’s 1930s Kaufmann Office
- A full-scale Frankfurt Kitchen designed by Margarete Schütte-Lihotzky, which transformed kitchen design in the 20th century
- Torrijos Palace dome
UAE currency: the story behind the money in your pockets
Indika
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
UAE Tour 2020
Stage 1: The Pointe Palm Jumeirah - Dubai Silicon Oasis, 148km
Stage 2: Hatta - Hatta Dam, 168km
Stage 3: Al Qudra Cycle Track - Jebel Hafeet, 184km
Stage 4: Zabeel Park - Dubai City Walk, 173km
Stage 5: Al Ain - Jebel Hafeet, 162km
Stage 6: Al Ruwais - Al Mirfa, 158km
Stage 7: Al Maryah Island - Abu Dhabi Breakwater, 127km
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
BUNDESLIGA FIXTURES
Friday Stuttgart v Cologne (Kick-off 10.30pm UAE)
Saturday RB Leipzig v Hertha Berlin (5.30pm)
Mainz v Borussia Monchengladbach (5.30pm)
Bayern Munich v Eintracht Frankfurt (5.30pm)
Union Berlin v SC Freiburg (5.30pm)
Borussia Dortmund v Schalke (5.30pm)
Sunday Wolfsburg v Arminia (6.30pm)
Werder Bremen v Hoffenheim (9pm)
Bayer Leverkusen v Augsburg (11.30pm)
More from Neighbourhood Watch:
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support