If you are living in the UAE and if you are thinking for a Retirement Planning Dubai then the first thing that you have to know is to get the ways in which you can make the investment in the best possible manner. You can also go for UK pension transfer plan if you are residing in UK. This is because of the fact that if you do not then you may end up in having a totally insecure life and that is exactly what you intended to do in the first place. So in order to have the investment plans UAE, you do have to go by the 3-bucket system of investment which is a really reliable process by which you can invest so that your life is totally safe and secure.
What is this 3-bucket system?
The three-bucket system of approach is quite simple, but do not be deceived by the looks as because it is very effective as well and you will love to have this system once you get to know of the system in detail. If you are a bit perplexed by the name bucket system, then you can rest assured as because the three buckets are symbolic of the three classified odes of the investment that you have to do.
According to the bucket 1, it is used in order to make the emergency saving and for the short term goals that you need to achieve. This is the investment that you need to do in liquid cash or the one that you can get handy easily. This sort of an investment is meant to be used during the times of emergency like the medical ones. In this case it is advisable that you collect 3motnths salary if you are single or working couples without children. You can even use this investment for small holidays or buying electrical gadgets.
Now coming to bucket two, it is meant for the short to the medium termed goals like the down payment of property, which is required to be paid over a period of time. Now if you want to, you can even have this investment for an expensive vacation, buying a land and so on. You may even indulge in the risky investments like the stocks, gold, hedge funds and so on. It is advisable that you invest an allocation of about 10-20% of monthly disposable income. This is indeed a very wise investment to make if you can handle it in the perfect manner.
In most of the cases, bucket three is the most important of the lot but it is this investment that is mostly ignored. Bucket three consists of the long term goals which will last a lifetime. Mostly they last longer than the 5 year tenure and comprises of the plans like childrens education, saving for the retirement purpose, moving back to countryside, saving for daughter’s marriage, saving for the heir and so on. This is the most important investment that people should be making and 50- 60% of the disposable income should come under this group. If you are careful to take care of this bucket system, then there can be no stopping.
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