Youth is wasted on the young, it’s said. But it seems to me that the maxim applies for the other end of the spectrum – surely retirement is wasted on the old.
Retire now and work later, is what I say.
To achieve this, hold onto the following thought: it’s all very well enjoying a tax-free status, but it’s wasted on those who haven’t put the tax-equivalent assets aside.
If you’re not doing this already, you’re probably blaming high expenses, low income and debt repayment as your barriers. Stop.
Now let's start again with this thought: with life expectancy getting longer, surely the way to live is to take a huge sabbatical half way through, and then get back to learning a skill or two, and earning once more later on in life.
If, that is you still need to earn.
Life expectancy is rising, as we all know. But as you think about planning for your retirement, it's worth thinking about your Health Adjusted Life Expectancy (Hale) a measure of your healthy years, as opposed to how old you'll be when you die.
In other words, your healthy years dictate what you're able to do as you age. The global average Hale at birth is around 63 years, according to the World Health Organisation. How far off is that for you? And is working half your waking hours until a stage when you're not able to enjoy the fruits of your labour really what you want out of life?
For me, it seems as if the ideal age (all other things considered) to retire would be around 40. By that age, people are typically wiser (in theory at least) and more cognisant of the need to look after their money and their health. They’re also more likely to have had a crack at building a traditional life, in terms of a career, a home and a family.
If you make the decision to change around this stage of life, you have more of a chance of seeing it through, having already experienced what it's like to be a wage-slave. Plus, if things have gone to plan, you should have had a few decades of earnings under your belt.
At this juncture it’s worth swapping the word "retirement" with "freedom from work". Retirement often has a negative connotation, implying being older and less able. Early freedom from work, by contrast, is the freedom to choose what you do with your life and your time, whether that includes working or not.
So what does it take to be free from having to earn money by 40 or thereabouts? I’ve been stalking a number of 30 and 40 year olds who have achieved this feat – and yes, they have a few things in common.
It’s about keeping as much money as they can, and then investing it. It’s important to really want to put money aside, because of what it does for you later. You’re going to need some serious resolve to to go with the flow and follow the spenders.
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Understanding the maths behind financial independence is key. The number to look at isn’t income. It’s what you spend on living. Rather, it’s what you don’t spend. Some early retirees blog about starting with a hundred dollars a month – and socking it into an index fund, or dividend yielding stock, which is great if you’re in your 20s when you start.
Others just ramped up their savings ratio – 50% and over is when it gets serious. If you’re spending 100 per cent of your income, you’ll never retire. If you don’t spend any of your income, you can retire right now.
A magic number to know is 25. Figure out what your life expenses will be for a year when you retire, and multiply it by 25. That's the lump sum you're aiming for, the assumption being that you can live off the 4 per cent the capital generates in interest. Your capital doesn't deplete, it just keeps giving.
A huge barrier to overcome is framing. If you view putting money away as a fun-sapping bore, I doubt you’ll stick with a saving habit. But if you think about it as your ticket to achieving your dreams -whether that’s touring the world in a VW camper can, or never having to clock into the office again - then you’ve got a better chance of making it happen.
Once you’re in the habit, invest what you save. Early retirees have passive income from dividend-yielding stocks, or from renting out property.
Now is the time to re-think, and readjust your lifestyle. How many times has a tax-free income in the UAE been cited as a great reason to work in the country? That’s fine, but much of that income is spent on upping your standard of living.
If you’re fortunate enough to enjoy accommodation costs paid by your employer, add this money straight away to your financial freedom pot. Someone I know did this for the three years he was posted in the UAE, and used it as a down payment for a flat when he went back home.
Tax-free income and perks will catapult you to financial freedom if you diligently put the money aside, and then invest it.
Are you disciplined enough to do this? Of course you are. Just focus on being able to do the things you love while your body is still up to the task.
Nima Abu Wardeh is a broadcast journalist, columnist and blogger. Share her journey on finding-nima.com
The BIO:
He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
He ascended Mount Everest the next year from the more treacherous north Tibetan side
By 2015, he had completed the Explorers Grand Slam
Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border
He carries dried camel meat, dried dates and a wheat mixture for the final summit push
His new goal is to climb 14 peaks that are more than 8,000 metres above sea level
On the menu
First course
▶ Emirati sea bass tartare Yuzu and labneh mayo, avocado, green herbs, fermented tomato water
▶ The Tale of the Oyster Oyster tartare, Bahraini gum berry pickle
Second course
▶ Local mackerel Sourdough crouton, baharat oil, red radish, zaatar mayo
▶ One Flew Over the Cuckoo’s Nest Quail, smoked freekeh, cinnamon cocoa
Third course
▶ Bahraini bouillabaisse Venus clams, local prawns, fishfarm seabream, farro
▶ Lamb 2 ways Braised lamb, crispy lamb chop, bulgur, physalis
Dessert
▶ Lumi Black lemon ice cream, pistachio, pomegranate
▶ Black chocolate bar Dark chocolate, dates, caramel, camel milk ice cream
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Call of Duty: Black Ops 6
Developer: Treyarch, Raven Software
Publisher: Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5
Yuki Means Happiness
Alison Jean Lester
John Murray
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
The specs: 2018 Peugeot 5008
Price, base / as tested: Dh99,900 / Dh134,900
Engine: 1.6-litre turbocharged four-cylinder
Transmission: Six-speed automatic
Power: 165hp @ 6,000rpm
Torque: 240Nm @ 1,400rpm
Fuel economy, combined: 5.8L / 100km
'Skin'
Dir: Guy Nattiv
Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga
Rating: 3.5/5 stars
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Common OCD symptoms and how they manifest
Checking: the obsession or thoughts focus on some harm coming from things not being as they should, which usually centre around the theme of safety. For example, the obsession is “the building will burn down”, therefore the compulsion is checking that the oven is switched off.
Contamination: the obsession is focused on the presence of germs, dirt or harmful bacteria and how this will impact the person and/or their loved ones. For example, the obsession is “the floor is dirty; me and my family will get sick and die”, the compulsion is repetitive cleaning.
Orderliness: the obsession is a fear of sitting with uncomfortable feelings, or to prevent harm coming to oneself or others. Objectively there appears to be no logical link between the obsession and compulsion. For example,” I won’t feel right if the jars aren’t lined up” or “harm will come to my family if I don’t line up all the jars”, so the compulsion is therefore lining up the jars.
Intrusive thoughts: the intrusive thought is usually highly distressing and repetitive. Common examples may include thoughts of perpetrating violence towards others, harming others, or questions over one’s character or deeds, usually in conflict with the person’s true values. An example would be: “I think I might hurt my family”, which in turn leads to the compulsion of avoiding social gatherings.
Hoarding: the intrusive thought is the overvaluing of objects or possessions, while the compulsion is stashing or hoarding these items and refusing to let them go. For example, “this newspaper may come in useful one day”, therefore, the compulsion is hoarding newspapers instead of discarding them the next day.
Source: Dr Robert Chandler, clinical psychologist at Lighthouse Arabia
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now
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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)
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JUDAS AND THE BLACK MESSIAH
Directed by: Shaka King
Starring: Daniel Kaluuya, Lakeith Stanfield, Jesse Plemons
Four stars
Sri Lanka squad
Dinesh Chandimal, Dimuth Karunaratne, Kaushal Silva, Kusal Mendis, Angelo Mathews, Lahiru Thirimanne, Niroshan Dickwella, Sadeera Samarawickrama, Rangana Herath, Suranga Lakmal, Nuwan Pradeep, Lakshan Sandakan, Vishwa Fernando, Lahiru Kumara, Jeffrey Vandersay, Milinda Siriwardana, Roshen Silva, Akila Dananjaya, Charith Asalanka, Shaminda Eranga and Dhammika Prasad.
Series result
1st ODI Zimbabwe won by 6 wickets
2nd ODI Sri Lanka won by 7 wickets
3rd ODI Sri Lanka won by 8 wickets
4th ODI Zimbabwe won by 4 wickets
5th ODI Zimbabwe won by 3 wickets
Defined benefit and defined contribution schemes explained
Defined Benefit Plan (DB)
A defined benefit plan is where the benefit is defined by a formula, typically length of service to and salary at date of leaving.
Defined Contribution Plan (DC)
A defined contribution plan is where the benefit depends on the amount of money put into the plan for an employee, and how much investment return is earned on those contributions.
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COMPANY%20PROFILE
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Company%20Profile
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Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
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The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
A%20QUIET%20PLACE
%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Lupita%20Nyong'o%2C%20Joseph%20Quinn%2C%20Djimon%20Hounsou%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EMichael%20Sarnoski%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
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