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At Client First Capital, we are looking to work with willing and patient partners to help them plan a better financial future. We take this very sincerely and promote double-digit growth across all investment opportunities. As a first step we sit with you and understand your current investment profile, your risk appetite, and your near- and long-term financial goals. This is the basis on which we work with you to build a solid foundation for your investment. Our aim is to inform and educate you about the various financial tools available. This would facilitate you to form your own perspective on investing and financial planning. Financial Consultant Dubai Financial Advisory Services in UAE Financial Planning Sharjah Financial Planning Abu Dhabi

When is the best time to look for a financial planning service?

Financial planning is an especially important aspect of our life, yet most of us fail to do it on time. Just the way we end up going to a doctor instead of taking care of our health. Many of us think of looking for financial planning services only when we lose our hard-earned money or are faced with a financial crisis. 

 

The big money is not in the buying or selling, but in the waiting.

The answer to the above question is simple. The best time to have started financial planning was the day we started earning. The second-best time is today. Therefore, it is important not to find reasons to delay, but to start immediately and work with us to grow your money and make it work hard for you.

At Client First Capital, we are looking to work with willing and patient partners to help them plan a better financial future. We take this very sincerely and promote a double-digit growth across all investment opportunities. As a financial consulting firm, as our first step we sit with you and understand your current investment profile, your risk appetite, and your near- and long-term financial goals. This is the basis on which we offer financial services to you to build a solid foundation for your investment. Our ambition is to equip you with knowledge and thinking so that you form your own perspective to investment and financial planning and grow your wealth to meet your goals.

Financial planning and common misunderstandings

Diversification is misunderstood by many of us, and we are herd investors. We are quick to invest our money just because someone says it worked for them. Let us take an example of investing in gold. We have noticed with many of our clients that their assets are skewed towards gold. Historically gold has only given 3% to 5% yearly returns, which does not help anyone grow their wealth since such rates barely beat inflation. I must clearly state that we are not against any asset class – One must understand that emotions have little value if you want to reach your financial goals, precisely the reason why you need the guidance from Client First Capital, a specialist in financial planning services.

 

Diversification is misunderstood by many of us, and we are herd investors. We are quick to invest our money just because someone says it worked for them. Let us take an example of investing in gold. We have noticed with many of our clients that their assets are skewed towards gold. Historically gold has only given 3% to 5% yearly returns, which does not help anyone grow their wealth since such rates barely beat inflation. I must clearly state that we are not against any asset class – One must understand that emotions have little value if you want to reach your financial goals, precisely the reason why you need the guidance from Client First Capital, a specialist in financial planning services.

Similarly, lots of us are heavily invested in properties, especially flats. As the name suggests, we might end up having ‘flat’ returns in near future. For centuries, our ancestors have used real estate to create wealth, but what we don’t understand is they had bought land which is scarce in nature. On the other hand, small investors cannot replicate that, in the current time investment growth through real estate is only a game suitable for ultra-high networth investors.

The third biggest issue is with fixed deposits. Many of our clients are NRIs and they regularly remit money to India to invest in fixed deposits at higher interest rates thinking they will make more money since developing markets typically have lower interest rates at 0-2% per annum. The point to note is that developing nations also face higher inflation rates, therefore the relatively higher interest rates get eaten away in currency depreciation, resulting in poor financial planning. 

Likewise, inadequate insurance planning is another big issue we face in our everyday interactions. Most of our Asian clients want their money back from insurance products – They do not recognize that insurance is not to earn money, but it is contingency planning for a rainy day. We strongly advice that insurance and investments must be treated differently, and one must have insurance before they approach investing planning.

Financial planning and time in the market

I cannot overemphasize the importance of asking for help from someone like us, who are experts in Financial Planning services. It takes all of us some time after getting our first salary cheque to realize that investments cannot be done out of what we save after meeting the monthly expenses. On the other hand, it is best to make investments at the beginning of the month, immediately after receiving the salary credit in our account. Our parents would have advised us, (and I am speaking to people of my generation who are perhaps now in their 40s and 50s), to save money wisely by investing in instruments like fixed deposits, recurring deposits, and of course ensure we have a life insurance policy and a PPF account. I wish our parents had asked us to invest in the stock market instead.

Imagine having invested Rs. 1000 in buying shares of any company in 1990. Let us believe that we invested that amount in buying shares of Reliance Industries Limited (NSE: RELIANCE). On July 5, 2002, that means we had acquired 18.86 shares of the company. Keeping aside dividend earned, and assuming we did not sell, the value of our investment on July 9, 2021, would be Rs. 39,086.02; or a growth of 3,808%. Now imagine if you had invested just Rs. 1000 each month since then. I will leave you to do the Maths. Try the same exercise using the prices of a precious metal like gold.

The most important thumb rule of Financial Planning is to have a long-term horizon. There are no ways at all of getting rich quick, at least none that are legal or stress free. It is important to be consistently present in making your investments work for you. Not once do I suggest a ‘fill it, forget it’ approach, you have to keep monitoring your investments and learn to change your approach as new information and knowledge comes in, or as you get better at taking decisions.

Financial planning and the power of compounding

I don’t know how many of you remember your middle school Math, especially the chapter on banking where you had learned the concepts of simple and compound interest. Let me refresh your memory. Simple interest is when a fixed percentage of the principal amount is added to your account each year. E.g., a 10% simple interest over a sum of Rs. 1000 means that you earn Rs. 100 as interest each year. Or, at a 10% simple interest it will take you 10 years to double your money.

Compound interest awards you interest on the principal and the interest earned till that year. For the first year Rs. 1000 at 10% interest will get you Rs. 100 or the same as simple interest. In the interest earned is Rs. 110 – 10% of the money at the beginning of the second year, i.e., 10% of Rs. 1000 + the Rs. 100 earned as interest in the first year. It is clear to see that the interest earned is more thanks to the power of compounding. 

Let me make this even more interesting. There is a thumb rule called the ‘Power of 72’. On dividing 72 by the rate of interest, you will approximately know the number of years it takes to double the investment using the power of compounding, and vice versa. At 10% interest, we approximately double in 7 years, a full three years ahead of the same effect in the case of simple interest.

The big point being made is simple, it is the power of compounding that makes your investment grow. The faster the rate of growth (or interest), the lesser time taken to double, and then double again. One must remember that growth rates fluctuate depending on several factors and are not always a flat percentage over a 15-, 20-, or 30-year period. It is therefore important to plan basis real rates of growth and then take advantage of exceptional circumstances and wise decisions to accelerate the growth of our investments.

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The best time to have started financial planning was the day we started earning. The second-best time is today. Therefore, it is important not to find reasons to delay, but to start immediately and work with us to grow your money and make it work hard for you. Best Financial Advisors Dubai Financial Advisor UAE Financial Planning in Sharjah Financial Advice in Abu Dhabi

“The big money is not in the buying or selling, but in the waiting.” – Warren Buffett

1. Education Funding – Start saving for your child’s future early with our Child education plan
2. Insurance Planning – Build a good sound Insurance strategy for your future with us
3. Fixed Income Strategy – Know how you can build investment strategy with our Fixed Income Investments plan

4. Retirement Planning – We’re here to help you every step of the way for your Retirement Plan Solutions.

Client First Capital has the Best Financial Advisors in Dubai and we also provide Financial Advisory Services in UAE, to assist you individually in finding the right financial solution. Financial consultant can help you determine and prioritize the processes you want to outsource, pick the right outsourcing service and develop a dependable system for you that keeps up with your financial health in the back of your head.

It all begins with a simple question: What are your long-term objectives? Client first capital’s financial advisors collaborate with you to create a personalised strategy based on your specific priorities and timetable, putting you on track to achieve your goals. Our Financial Advisors in UAE and Financial Consultants in Dubai can assist you with the following, depending on their area of expertise: • Asset allocation • Retirement planning • Cash management • Education funding • Long-term care planning • Insurance planning • Overall wealth management • Fixed income strategies • Estate and legacy planning

Our clients say they trust our financial planning services because: after taking the time to understand our clients’ needs, goals, and objectives, we seek to provide them with financial advice that best utilises the resources available to them in achieving those goals – we provide individualised and professional Financial Advisory Services in UAE and we have our Financial Consultants in Dubai as well which will take care of all your requirements.

Our financial planning service professionals will provide guidance on all aspects of your personal finances, including:
– Payslip and Tax Analysis
– Your retirement and pension
– Keeping your salary secure
– Savings and financial planning services

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Understanding your retirement goals and plans is the first step with Client First Capital. We will work with you in building the foundations for a strong and steady income post retirement. What are you waiting for, contact us today…