I recently did what most financial advice forbids: I stuck my hand in my retirement portfolio and backed out of some stocks.
Earlier this month, I stared at my long-term portfolio, got spooked by the 81 per cent that sat in equities and dialed that figure back to a more moderate 60 per cent. I also tripled the fixed income portion of my portfolio to 27 per cent.
I’d been pretty aggressive since I started investing in my early twenties and benefited from the hefty exposure to stocks. In just the last two years, my portfolio has been up 28 per cent. So, why the change in direction? Why not just “stay the course", as many financial experts – myself, included – encourage us to do, especially in these uncertain times?
Continuously exposing my nest egg to all this risk now feels overzealous.
Here it is: I’m concerned about the fundamentals of the US economy. I’m worried about if and how the job market can rebound anytime soon, and I’m not as bullish on long-term stock returns. Continuously exposing my nest egg to all this risk now feels overzealous. Although the stock market appears to suggest we’re headed for a robust recovery, I’m not buying it. Literally.
More relevant, I turned 40 this year and am hoping to begin drawing down on this portfolio starting at 60. That gives me a solid 20 more years to hit my savings target. I know that’s probably enough time to recover from this recession and likely the next one. But my appetite for “probably” is less so these days.
Also worth pointing out: I am the breadwinner in our marriage, with my earnings accounting for about 80 per cent of household income. My business largely helps to support our family of four and the house in the suburbs we just purchased. My plate’s becoming increasingly full, and I don’t have as much room now for a highly unpredictable, volatile investment portfolio.
If we’re being honest, I did glance over my shoulder before making the adjustment. It felt like a betrayal, going against the “do nothing” advice that has become the industry standard. Still, I’m confident it was the right move — for me, that is. And the certified financial planners I spoke to in the US, admit that I’m not misguided.
“It’s not what I would do, but I’m much more comfortable with risk,” says Anjali Jariwala, founder of FIT Advisors in Los Angeles. “Your risk tolerance has come down, as you've gotten older and you have more responsibilities, which is very reasonable."
“The current events triggered you to reassess … but really this is something you should do annually or whenever there's a major life event such as having children, [making a] career change or retirement,” adds Angela Moore, founder of Modern Money Advisor, a financial planning firm based in Florida.
Constantly worrying about your investment portfolio is a valid sign that you may be taking on too much risk, the experts agreed.
“The best balance between equities and fixed income ... provides us the possibility of growing our funds to meet our goals, but also lets us sleep at night,” market veteran Linda Davis Taylor, and the host of the podcast Money Stories, told me.
And that’s just it. I couldn’t sleep. Besides my three-year-old daughter who occasionally crawls into our bed at 2am, few things wake me up at night. But here I was, lying in bed unable to stop thinking about what ifs.
What if the looming fiscal cliff leads to a second Great Depression? What if a cure for Covid is years away? What if our family depletes our more than one year’s worth of emergency savings? All these questions warranted a closer look at the numbers.
Making money moves based on pure adrenaline is never wise, and I was emotionally charged. So I asked, would I be willing to commit to this new allocation for the next, say, 10 years and not be tempted to revert back on a whim? I rationalised, yes.
“Don’t just do it as a timing issue,” says Ms Jariwala. “Research shows you end up worse off because you have to time it right twice. You need to know when to get out and go back in.”
And what about hitting my target savings goal? A more conservative portfolio may no longer get me to where I want to be in the same time horizon. To offset this potentially slower growth, I made a personal commitment to invest more of my income. This was something all the planners cheered.
“You have no control over what the market does, no matter what your allocation is,” says Ms Moore. “The savings part is the only part you can control.”
So, my parting advice for anyone considering a shift in their portfolio is to think of your investments as just one aspect of your overall financial solvency. If you’re going to take a smaller position in stocks, what else in your financial life may need to be adjusted to offset this potentially smaller nest egg? Do you need to save more in an emergency account or delay retirement?
“If you’re revisiting asset allocation, then you should just revisit everything on your financial checklist ... all the things that are there to protect your income and assets,” says Ms Jariwala. “Make sure you’re buttoned up.”
Farnoosh Torabi is the author and host of the So Money podcast
• Bloomberg
UAE currency: the story behind the money in your pockets
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
The biog
Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates
Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.
Favourite pastime: travelling and experiencing different cultures across the globe.
Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.
Favourite Movie: Mona Lisa Smile
Favourite Author: Kahlil Gibran
Favourite Artist: Meryl Streep
SPEC%20SHEET%3A%20APPLE%20IPHONE%2014
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Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
UAE currency: the story behind the money in your pockets
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