The Benefits of Using a Financial Advisor in UAE

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February 3, 2020

Overwhelming. This is the feeling we all get when it comes to managing our money. There are common objectives we all want to achieve from our
wealth management, including but not limited to; building wealth to provide us with a secure future, fulfilling investment objectives and organising wealth to achieve the goals we’ve dreamed of reaching. Investing in real estate, paying for your children’s education or having your dream retirement.

Dependent on what you’re trying to achieve, a financial advisor in the UAE can make managing your wealth a whole lot less complicated. They provide you with options you may not have even thought about to manage and maximise your assets.

In this article we’ll be talking about what the benefits are by using a Financial advisor, including:

  • Providing you with financial peace of mind
  • They have valuable knowledge & insight
  • Helping to manage taxation

Providing you with financial peace of mind

No one likes that feeling of uncertainty, especially when it’s in regards to your finances. A financial advisor helps to give you that peace of mind you need when managing your wealth.

To secure yours or your families long term future, you need to build some assets to lean on. Whether that’s to get you through the rainy days or to pay for holidays and other luxuries.
A financial advisor minimises the risk of investment decisions driven by emotions, especially feelings of worry or panic which can undo months or even years of hard work.

A good FA will get to know you on a personal level so that they can understand your circumstances, your goals and how much risk you are able and prepared to take with your wealth/investments. This way they can give you sound financial advice that’s tailored to you and your objectives.

Having found the right financial advisor gives you the ability to relax, safe in the knowledge that a financial professional is taking care of a wide range of challenges and questions that you would otherwise have to deal with.

Even once your investments have been put in place and are running to plan, they should be monitored in case of any detrimental or abnormal developments that could push them off course. Your financial adviser should maintain a watchful eye on your investments (this is best practice for most).

They have valuable knowledge & insight

Your financial advisor is dedicated to helping you reach your goals and make them possible. To do this they spend much of his or her time on research. When considering your particular investment needs, they will research the best opportunities, if they don’t already have the answers. They’re experts in their field and have access to information across the industry to better inform their decisions and knowledge.

Whether you’re looking to invest, save or plan for your retirement, when managing your wealth it’s as much about protecting against potential downsides as it is about targeting maximum growth. High returns can often be associated with high risk and not everyone is happy with the idea that their investment might fall by a third or more overnight!

They’ll make sure they get to know your attitude to risk before making any recommendations. As well as assessing your appetite for risk, they should also ensure that you don’t put all your eggs in one basket, by helping you diversify your portfolio not only across asset classes but also across accounts, individual funds and product providers.

Helping to manage taxation

A huge benefit of using a financial advisor is that they assist managing your taxation. Everyone dreads doing their taxes so finding someone who is willing to do them for you is great, the bonus is that they’ll manage this so that you don’t pay any unnecessary taxes. You trust in the knowledge that they’re up to date with the also undertake research on a regular basis to ensure they maximise their knowledge of the industry, markets, law and taxation so you don’t have to. Financial advisors and Tax advisors are two different professions but there is a lot of crossover information which can extremely beneficial. Most advisors will be able to recommend a reputable tax advisor if required

There is little point in putting your money into an investment, only to find that the vagaries of taxation could mean an opportunity that looked less attractive could have been more effective. Taxation can sometimes erode the capital that you generate from an investment and if you’re not careful, an investment that looked perfect can result in a tax charge that hurts your overall personal income.

Your financial advisor can take care of all of these concerns, ensuring that all possible tax implications are considered when investing funds and organising personal income. One of the largest ways they can help with taxation is by advising you on tax reducing strategies and of any relevant changes to legislation or the launches of new investments that offer long-term gains, as well as tax efficiency.

If you’re looking for a financial advisor, Ai Investment Group is a UAE based financial planning firm, we’re experts in investment and wealth management for expatriates and UAE nationals.

We believe in providing exceptional solutions for individuals, families and businesses