Pocketful of Dirhams

Can ChatGPT replace financial advisers?

Have you tried ChatGPT yet?
There’s been a lot of talk lately about the chatbot developed by Open AI to generate human-like conversations with people on a range of topics – big or small.
There’s no doubt that many of you – like me – have already tried it and found that its potential is wide-ranging.
Over the past few years, low-cost investment robo-advisers have democratised investing for the masses by using AI to assess, for instance, a person’s risk levels.
This led me to start thinking about ChatGPT’s potential as a free financial adviser – what type of advice would it offer and could it replace the 20th-century concept of an expensive financial adviser that many people can’t afford?
Welcome to Pocketful of Dirrams – I’m Felicity Glover, the personal finance editor at The National. Joining me today is, Joseph El Am, general manager of digital wealth manager StashAway Mena, who’s here to talk about Chat G-P-T and financial planning.
 
Hosted by Felicity Glover
Produced by Arthur Eddyson and Doaa Farid

Will you receive a salary rise this year?

It’s that time of the year when many employees can expect a salary rise and bonus. On average, salaries in the UAE are expected to rise by 2 per cent to 5 per cent, although this depends on the sector you are working in and your role. According to a recent survey by jobs portal Bayt.com, 53 per cent of professionals in the UAE expect to receive a salary increase this year.

Employees in banking, financial services, investment management and consulting can expect the highest salary increases and bonuses in 2023, says Trefor Murphy, founder and chief executive of recruitment consultancy Cooper Fitch. However, employees in other sectors can also expect solid pay rises and benefits such as flexible working, Mr Murphy adds.

Host Felicity Glover is joined by Mr Murphy, who discusses this year’s salary trends in the UAE and shares his advice on the steps you should follow to ask for a pay rise.

 

Top tips to boost your finances in 2023

It’s been a tough year on our personal finances — from record-high global inflation to rising interest rates and an increase in borrowing costs for consumers.

 

There are also strong warning signs that a global recession is looming. 

 

But, as we head into 2023, now is a good time to review your finances and plan ahead. 

 

This is to ensure you begin the New Year on a positive financial footing — such as setting goals to pay off or lower your debts, sticking to a budget and saving for the future.

 

“It's a good time to reflect and review your finances, and then decide what you need to reduce or change,” says Alison Soltani, founder of savings website Leap Savvy Savers.

 

Host Felicity Glover is joined by Ms Soltani, who shares her tips on how to boost your finances in 2023.

What to do if a debt collector calls

It can be an extremely stressful time if you lose control of your debts and can no longer keep up with monthly instalments on credit cards or loans.

There are many reasons why debts can spiral out of control — from losing your job to facing a medical emergency, or even spending beyond your means.

Whatever the reason, there are consequences — after three missed payments, banks in the UAE will alert their collections department about a debt default.

That is a situation you don’t want to find yourself in as you could eventually face legal action and a travel ban.

But how do you negotiate with debt collectors and — more importantly — make it work to your advantage?

Host Felicity Glover is joined by debt collection expert Jaya Ratnani, managing partner of Freed Financial Services, who discusses what to do if you are contacted by a collections team.

Why the unemployment pay scheme is a vital safety net

The UAE’s Unemployment Insurance Scheme took effect earlier this month, giving all Emirati and foreign employees in the country a vital cash safety net if they lose their job.

 

The mandatory social security support system is based on 60 per cent of an employee’s basic salary and is capped at a maximum of three months, the Ministry of Human Resources and Emiratisation said.

 

While the finer details have yet to be announced, financial experts have welcomed the move but say it is imperative that people also set up an emergency savings fund, rather than rely solely on the unemployment benefits.

 

Host Felicity Glover is joined by Keren Bobker, an independent financial adviser and senior partner with Holborn Assets, to discuss the benefits of the social security scheme.

The pros and cons of fractional property investing

Buying property is one of the biggest financial commitments that we will make in our lives. But getting on to the property ladder can be difficult for some — saving for a deposit while also meeting other expenses can take years, more so these days as property prices quickly rise and mortgages become more expensive due to central banks raising interest rates to rein in inflation.

Others may feel uncomfortable making a financial commitment to buy a property and prefer to live their lives free of the burden of a mortgage. However, many financial experts advise that investing in property is important to diversify your portfolio, particularly in today's bear market.

One option in the UAE involves fractional property investing. Think of it like crowdsourcing — a certain number of people invest X amount of money and collectively buy a property together. The property is then rented out and investors earn a return based on the rental yield. But what is fractional property investing, how much do you need to begin and are the returns worth it?

Host Felicity Glover is joined by Siddiq Farid, co-founder of real estate investment platform SmartCrowd, who discusses the pros and cons of fractional property investing.

Hosted by Felicity Glover
Produced by Arthur Eddyson and Thomas Smith

Why you should ’HODL’ your crypto right now

It has been a difficult year for cryptocurrency investors. Bitcoin has plunged from a record high of about $68,000 last year to trade in the $19,800 range on Monday, while the cryptocurrency sector's market capitalisation has again fallen below the $1 trillion mark.

Analysts warn that the cryptocurrency roller coaster ride is far from over, dragged down by this year’s equity bear market, global economic uncertainty, higher interest rates and a sharp rise in the cost of living around the world.

Many novice investors might be ruing the day they jumped on the cryptocurrency bandwagon, believing they could make a fast buck on the likes of Bitcoin, Ethereum or meme coins such as Doge and Shiba Inu on their “shoot to the moon” journey. However, rather than panic selling — and risk losing a substantial chunk of your investment ― investors might want to consider some other strategies. These include holding on for dear life (HODLing) to avoid short-term volatility, or staking digital coins to earn passive income.

Host Felicity Glover is joined by Stefan Rust, founder of blockchain development house Laguna Labs and former chief executive of bitcoin.com, who discusses the benefits of investing in cryptocurrencies for the longer term.

How part-time work helps teenagers to learn vital money skills

The government’s overhaul of visa regulations last September means that teenagers aged 15 to 18 can now work part-time in the UAE, giving them an opportunity to earn a regular salary and learn some vital life skills at the same time.

Those skills can include anything from money management to time management, as well as building confidence, instilling a sense of responsibility and gaining that all-important on-the-job experience.

While it is an empowering experience for youth, the two most important skills for part-time working teenagers is understanding the value of money and how to manage a regular salary, financial experts say.

This includes budgeting, setting savings goals and even beginning their investment journey as early as possible to take advantage of the benefits of long-term compounding interest.

Host Felicity Glover is joined by Marilyn Pinto, founder of Kids Finance Initiative Global, who discusses the benefits of teenagers earning a regular salary through part-time work.

Is now the time to invest in UAE property?

As the UAE’s property market continues its strong recovery from Covid-19 pandemic-induced headwinds, recent changes to the country’s visa rules have opened up long-term real estate investment options for residents wanting to put down roots in the Emirates.

While average property prices in Dubai rose by 10.9 per cent, year on year, last month, residents can now qualify for a 10-year golden visa if they buy a property for as little as Dh2 million ($544,588).

Despite rising interest rates, the initiative is attracting both residents and high-net-worth individuals from around the world, with an average budget of about Dh3m, property experts say.

But where should you buy and how do you apply for the golden visa once you have decided on a property?

Host Felicity Glover is joined by Richard Waind, group managing director of Betterhomes, who discusses the UAE property market and how the golden visa is benefitting the long-term plans of UAE residents.

Hosted by Felicity Glover
Produced by Arthur Eddyson and Ayesha Khan

How to beat the rising cost of living

It's difficult at the best of times to stick to a budget — not only do you have to fund your daily living expenses, but there’s also paying down debt and meeting important savings goals to set you on the path towards a secure financial future. For parents, there are also expensive education costs to consider, as well providing for their children.

But during times of high inflation and rising interest rates, it becomes more difficult for households to stretch their dirhams further. Regardless of where you are in the world today, the prices of food, petrol and other everyday expenses are on the rise and salaries are not keeping up with inflation. This leads many people to struggle with their budgets. However, there are numerous ways to ease the financial stress you might be experiencing, experts say.

Host Felicity Glover is joined by Alison Soltani, founder of UAE savings website Leap Savvy Savers, who shares her tips on how to save money on everyday expenses during periods of high inflation.

Hosted by Felicity Glover
Produced by Arthur Eddyson and Ayesha Khan