Abu Dhabi Meetup 1: Investment Planning and Asset Allocation
Updated: Jun 23, 2019
(Written by Jennifer Lincoln, posted by Sebastien Aguilar)
CSPFI UAE BH has its first AD meeting on 1 October. There was significant enthusiasm to discuss the HOW of investing. How to do it? How to set up a brokerage? How to buy an ETF?
Jen meanwhile presented on Asset Allocation based on Rick Ferri, famous Bogleheads®, book "All About Asset Allocation". Assets should ideally be spread in a way which is diverse, so that risk is minimized. While all investors should have liquid to last 6 months, other assets are best allocated to funds which are themselves diverse (such as total-market ETFs) and assets which are not immediately liquefiable (such as real property).
An adaptation of Ferri's Asset Allocation pyramid as follows. Note that the pyramid is set up to show precedence (order in which one should set up each item), rather than quantity.
There is significant information about asset allocation, including on the Bogleheads® website. As Bogleheads®, we tend do focus most readily on the 'Readily Liquefiable' category, though it is not the only asset class by any means. The meeting also recapped previous events, such as the Presentation on the Rule of 72 and Investment Planning Strategies for Dubai. It cannot be said enough that while one's particular plan (what brokerage domiciled where, what fund and what fund name) is based heavily on their passport, but the principles remain the same. You can plan your portfolio with minimum fees. You can buy and hold and do better than buying and selling. Looking forward to the next event!