Financial Planning

Safety Nets

The first and arguably the most important area of financial planning that needs to be considered, and is often overlooked, are the safety nets.
These include; 

  • Life assurance – what would happen if you were to die? Is there anyone financially dependent on you?
  • Critical illness cover – what would happen if you suffered a critical illness and were not able to work?
  • Medical insurance – how would you afford to meet the costs of medical treatment for a serious condition? Would you want to be in the position of paying many thousands of dollars for medical treatment?
  • Income protection – if you were unable to work could you survive without your income?  

All these areas should be investigated and discussed before discussing any other areas of financial planning.

Lifestyle v Financial

Most people relocate to Abu Dhabi for lifestyle and financial reasons. However, many are often lured by the tax free money, enjoy the lifestyle and forget the financial reason why they came in the first place.

  • Rule 1. Make a plan.
  • Rule 2. Do not live beyond your means.
  • Rule 3. Stick to Rule 1

If you were to wisely invest your overseas tax bill for the duration of time you live here, consider what that would enable you to do in later years.

Consider taking on debt in Abu Dhabi carefully. Lifestyle suggests a sports car, financial planning suggests a saloon!

Mortgages

Most banks offer mortgage products, though since the end of 2008 they have tightened their lending criteria and now offer lower loan to values on properties. A publication such as UAE money works will give you guidelines.

For independent advice, a firm such as Dubai based Home Matters is worth considering. For a fixed fee (which is only payable upon successfully securing a pre-approval and mortgage), they will assess your needs and trawl the market to obtain the best deal for you. In this case, independent means access to most banks and mortgage products across the market place. Please note that no single bank finances every property in the UAE. Therefore, a good independent mortgage consultant is recommended.

Wills

Anyone with assets in the UAE should have a UAE will. This is purely to protect your estate in the event of your untimely death. The will should also be attested in the UAE. There are a number of law firms who can assist.

A law firm here in Dubai called MacDavidson will be able to assist you.