Roy Walker IFA - Financial Adviser In Dubai

Introduction To some degree, currency risk is embedded in the portfolios of every international investor. So it’s surprising that such an important topic is often ignored, mismanaged, or misunderstood from both outside and inside the financial planning industry. Given that global currency movements are prominent in the headlines right now, it seems like good timing to have a quick review of currency risk, and safety-check that the currency exposure of our personal investment portfolio is in line with our objectives. What Is Currency Risk and Where Does It Come From? Most people who live and work internationally have experienced first-hand the impact of positive or negative currency movements; this is currency risk (also called exchange rate risk). Maybe you’re sending money home each month to pay your mortgage, and payments are easier than before because you get paid in a stronger currency. Or maybe your child wants to attend university in a country whose currency has appreciated again...

Often we may start by buying a home to live in; it makes more sense to pay our own mortgage rather than rent a place and pay the landlord’s mortgage . ‘Getting on the rungs of the property ladder’ is common priority for many young couples. However with rising job mobility and larger sums needed for initial deposits, many people are rightly delaying a property purchase for a few years, rather than taking on financial obligations that would affect flexibility in the growth stages of a career. Property is an important asset class that should form part of our long term savings & investment strategy . However, matters such as home ownership are a personal and sometimes emotive subject. I make a point never to underestimate the sentimental factors that come to bear when I work with clients in this area. People often make financial decisions with an emotional bias , and this is seen nowhere more profoundly than with property. Your home in retirement In the long run, most of us should plan...