A regular savings plan helps you systematically invest your savings in international investment funds.
It can help you accumulate a sizeable capital for one or more of the following purposes;
- Investing in income generating assets for passive income
- Saving for children’s higher education
- Saving for Retirement
- Down payment for a property
- Capital for starting a business
- Immigrating to another country
- Any other purpose for which a sizeable capital is required..
However, merely starting a regular savings plan without proper planning and provisioning for inflation, will not help you achieve your investment goals.
Steps to be followed before setting up a regular savings plan:
- Setup a compelling and challenging goal for a specific purpose. Ex : Downpayment for a property.
Determine how much you need to achieve the goal as of today. (Eg : AED 500,000)
Determine the exact number of years, when the money will be required to pay for the goal. (Eg: 5 years)
Ascertain the percentage of inflation applicable to the particular goal. ( Eg 10.00%)
Understand your risk profile based on which you can determine your investment strategy and expected returns from the investment. Have a detailed discussion with your financial advisor regarding this aspect.
Use this Monthly Investment Calculator to find out how much to invest in a Regular Savings Plan to achieve your investment goal.
Calculate the right amount for your SIP
To use this calculator, please left click on the slider below and drag to the right till you reach the desired amount/number.
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In UAE an Investor can choose from a wide variety of Regular Savings Plan from prominent insurance and investment providers like Zurich, Generali, LIC International, FPI, Salama, Hansard and Arab Orient.
Contact me to arrange a Free Initial Meeting and unbiased advice on setting up a regular savings plan, based on your investment goals and risk profile.