Emirates Provident Fund and Mondial
Join Date: Jan 2002
Location: West Country
Posts: 1,271
Likes: 0
Received 0 Likes
on
0 Posts
Yes - but.....
The big problem with managed funds like the ones available through Mondial are the management costs dont necessarily give any benefit to the bottom line. If we take your best performing Fund, the Fidelity International, you pay every year 1.9% as a management fee whether you make money or not - so on a $10,000 investment you pay Fidelity $190.
If on the other hand you invested in a low cost tracker Fund like the Vanguard 500 Index Fund you would have seen exactly the same increase but you would only be paying 0.05% in management fees - $5 instead of $190.
There are actually very few managed funds that outperform the market when you include the hefty management fees.
Join Date: Aug 1998
Location: the ridge where the west commences
Posts: 770
Likes: 0
Received 0 Likes
on
0 Posts
It's worth repeating.
There is no nead to spend the time following the link if you really want to donate $350,000 dollars of your own money to your friendly fund managers. That would be your choice. And yes, they are ordering the private jet.
How a 2% fee adds up to $350,000 over time: Mayers | Toronto Star
There is no nead to spend the time following the link if you really want to donate $350,000 dollars of your own money to your friendly fund managers. That would be your choice. And yes, they are ordering the private jet.
How a 2% fee adds up to $350,000 over time: Mayers | Toronto Star
Join Date: Jun 2005
Location: MIDDLE EAST
Posts: 1,035
Likes: 0
Received 0 Likes
on
0 Posts
Dropp
Yes, indeed we have been over this before.
Unfortunately, most of us do not have the the knowledge or time that you obviously possess in doing your own long term investments. Mondial provides generally good advice and that works for those with little to average financial acumen. As for the 2%, EK provident fund does get a discounted fee structure. I think 1% tops would be nearer and that's built into the value. While I'm sure you're doing very well with your ETFs, a TRE who recently retired (RH) left with a fund valued at well over $2,000,000. He'd done 25 years give or take.
If I can leave with that amount, I wouldn't give a **** if my fund manager had a private jet.
Harry
Yes, indeed we have been over this before.
Unfortunately, most of us do not have the the knowledge or time that you obviously possess in doing your own long term investments. Mondial provides generally good advice and that works for those with little to average financial acumen. As for the 2%, EK provident fund does get a discounted fee structure. I think 1% tops would be nearer and that's built into the value. While I'm sure you're doing very well with your ETFs, a TRE who recently retired (RH) left with a fund valued at well over $2,000,000. He'd done 25 years give or take.
If I can leave with that amount, I wouldn't give a **** if my fund manager had a private jet.
Harry
Join Date: Dec 2006
Location: Behind you
Age: 76
Posts: 311
Likes: 0
Received 0 Likes
on
0 Posts
Harry,
I think to retire with that amount of money RH must have put a substantial percentage of his salary in the C found..
I have not heard of anybody leaving with more than 500-600.000USD....
I think to retire with that amount of money RH must have put a substantial percentage of his salary in the C found..
I have not heard of anybody leaving with more than 500-600.000USD....
Join Date: Nov 2006
Location: N/A
Posts: 41
Likes: 0
Received 0 Likes
on
0 Posts
sign of the times
When a bunch of pilots are sitting around excited about how big their retirement account is, may be a sign….of a top.
I think one could sell any fund that holds bonds or equities and buy stable USD or GBP cash funds, in 5 years I think you'd be happy. Especially if you've already been saving for 15 years and ready to retire.
We're at all time highs people, don't be greedy. Nothing wrong sitting on cash earning 0% for a couple years. Its been a historical run. Be happy with your profits and lock them in.
The buy high, sell higher crowd never learns. Like a game of greater fools playing musical chairs. Who will be the last one without a chair? Easy answer, the fund holders..
We're in a bubble, again. Central banks around the world are on a race to the bottom printing cheap money.
You could easily see equities test the 2009 bottom again when rates start to rise again.
I think one could sell any fund that holds bonds or equities and buy stable USD or GBP cash funds, in 5 years I think you'd be happy. Especially if you've already been saving for 15 years and ready to retire.
We're at all time highs people, don't be greedy. Nothing wrong sitting on cash earning 0% for a couple years. Its been a historical run. Be happy with your profits and lock them in.
The buy high, sell higher crowd never learns. Like a game of greater fools playing musical chairs. Who will be the last one without a chair? Easy answer, the fund holders..
We're in a bubble, again. Central banks around the world are on a race to the bottom printing cheap money.
You could easily see equities test the 2009 bottom again when rates start to rise again.
Join Date: Jun 2005
Location: MIDDLE EAST
Posts: 1,035
Likes: 0
Received 0 Likes
on
0 Posts
my salami
Yes, no doubt he was contributing a large amount into the C fund. I know of 1 TRE who's kids have left home and he's now putting away 50%! I'm half that with kids still at home and a mortgage to pay. It's do able so not sure why some on here say you shouldn't include the C fund. Why not? Your spare cash would be put into other alternative investments, such as property, savings, gold, bonds, ETF's or whatever you want to invest in for your future retirement. Some choose the C fund because of the lower fund charges and ease of use.
I have another colleague, 18 years, no C fund contribution, fund just over 700K.
I'm not selling the Provident Fund, merely pointing out it's value to some.
Harry
Yes, no doubt he was contributing a large amount into the C fund. I know of 1 TRE who's kids have left home and he's now putting away 50%! I'm half that with kids still at home and a mortgage to pay. It's do able so not sure why some on here say you shouldn't include the C fund. Why not? Your spare cash would be put into other alternative investments, such as property, savings, gold, bonds, ETF's or whatever you want to invest in for your future retirement. Some choose the C fund because of the lower fund charges and ease of use.
I have another colleague, 18 years, no C fund contribution, fund just over 700K.
I'm not selling the Provident Fund, merely pointing out it's value to some.
Harry
Join Date: Jun 2005
Location: nowhere
Posts: 548
Likes: 0
Received 0 Likes
on
0 Posts
50/50
gents,
at the moment i have 50% dollars and 50% equities in A and B.
I was thinking to move at least 25% more in cash.......
i used to follow the blog ECAM but now it is only with payment.
I am extremely ignorant and happy to hear from you what are your decisions and doubts
thanks
at the moment i have 50% dollars and 50% equities in A and B.
I was thinking to move at least 25% more in cash.......
i used to follow the blog ECAM but now it is only with payment.
I am extremely ignorant and happy to hear from you what are your decisions and doubts
thanks
Join Date: Dec 2006
Location: KUL
Posts: 431
Likes: 0
Received 0 Likes
on
0 Posts
Just pulled out of all equity funds and went into Euro cash. Might look stupid, but I caught the 2000 dotcom and 2008 subprime bubble right by switching from equity into cash. Perhaps I will be 3 times lucky, perhaps not.
Join Date: Apr 2003
Location: UAE
Posts: 1,026
Likes: 0
Received 0 Likes
on
0 Posts
I'm not sure I understand Widebdy's question- there is an app for the ipad/iphone which tells you exactly what your fund is worth in real time. I find the range of funds for the A and B funds much too limiting and conservative for somebody with more than 15 years to go to retirement. I'd rather have the money and invest it myself (my money, my responsibility) but that will never happen.
Join Date: Aug 1998
Location: the ridge where the west commences
Posts: 770
Likes: 0
Received 0 Likes
on
0 Posts
Continuing with the evangelism in the hope of saving a few more souls... Yes, you are trapped in the A and B and you are forced to throw away hundreds of thousands of dollars of your family's money. You can still "flee the C" and you will keep your investment returns where they belong: in YOUR pocket.
Unless you are Donpizmeov and already know everything about everything, take a minute or two to read the article and see the damage being done by the outrageous fees.
How a 2% fee adds up to $350,000 over time: Mayers | Toronto Star
Unless you are Donpizmeov and already know everything about everything, take a minute or two to read the article and see the damage being done by the outrageous fees.
How a 2% fee adds up to $350,000 over time: Mayers | Toronto Star
Aw drop, I knew you cared. Shucks 
The don
The don
Join Date: Apr 2003
Location: UAE
Posts: 1,026
Likes: 0
Received 0 Likes
on
0 Posts
The end of service benefit is a UAE legal requirement and the provident fund is designed to provide a better return than the legal minimum end of service. That is one reason the choice of funds is so limited and conservative- it doesn't have to perform well, just produce a better return than the legally calculated end of service benefit. I think it almost always does.
Join Date: Feb 2014
Location: in the middle of nowhere
Posts: 13
Likes: 0
Received 0 Likes
on
0 Posts
After having various forms of investment: "C" and others outside EK for over 7 years, all I can say is that "C" works for me.
I don't see the money, have no access to it, as it goes straight into the selected fund. OK, I might be paying a bit in fees for their services, but when we talk about other investment vehicles, in most cases we end up paying service charges, account management fees, money transfer fees, etc.., not to mention hidden ones. Yes, I agree, it doesn't give you the greatest choice of funds, but it's simple, safe and judging by returns is actually doing pretty well. Most of American equities funds made in the vicinity of 70% + in the last 3 years.
I don't see the money, have no access to it, as it goes straight into the selected fund. OK, I might be paying a bit in fees for their services, but when we talk about other investment vehicles, in most cases we end up paying service charges, account management fees, money transfer fees, etc.., not to mention hidden ones. Yes, I agree, it doesn't give you the greatest choice of funds, but it's simple, safe and judging by returns is actually doing pretty well. Most of American equities funds made in the vicinity of 70% + in the last 3 years.