Time value of Money is one of the fundamental concepts of finance and investing. Simply put, a constant amount of money decreases in real value over time. This is due to the fact that the same amount of money can buy us a lot less in future than it does today. To maintain or increase the value of our savings, it is thus crucial to invest regularly.
Given the vast universe of investment options, it can be difficult to determine where to invest. Also, it is tempting to think about how well we would have done, if we had just held tech stocks (AMZN, AAPL, FB, MSFT) over the last decade. Indeed, it became one of the most popular topics on social media and conversations with friends, as Apple crossed USD 2 trillion market cap. However, that is not the best approach to long-term personal investing. Modern portfolio theory, pioneered by Nobel Prize winner Dr. Harry Markowitz, describes how risk-adjusted returns can be maximized by investing in a diversified portfolio. While it lacks the thrill of volatility experienced in stock picking, a boring diversified portfolio helps you sleep peacefully at night.
Tiva Money uses a time-tested investment philosophy to help you achieve your goals. We do not pick stocks or provide advice on how to time the market. We seek to maximize long-term risk-adjusted returns, focusing on your investment horizon instead of trying to beat the market. We also aim to do so in the most cost-effective way possible, by investing funds in a globally diverse portfolio of low-cost and high liquidity ETFs. But before we start investing, we try to understand your personal situation and specific goals, so that we can offer the highest quality advice that is tailored to your needs.
Absolutely not. We always want you to be in full control of your funds. While its important to adhere to an investment plan to achieve your goals, we offer full flexibility for you to invest or withdraw your funds as per your requirements. We are able to do so by choosing to allocate funds only in the highest quality and most liquid ETFs, which can be divested at any time without incurring any penalties.
Tiva Money offers one of the lowest fees (0.5% per annum) in the region. This fee, charged monthly, is applicable on invested funds. In other words, if your total investment amount is AED 10,000, we charge a fee of only about AED 4 per month. With this fee, you get access to globally diversified portfolios, support from our team, investment research, and your own personal dashboard. The underlying low-cost ETFs in which funds are invested carry their own fees, ranging from 0.1%-0.2% p.a. The NAV’s of those ETF’s are calculated net of this fee
We believe that financial well-being is more than simply monitoring your portfolio. The Personal Finance Dashboard is designed to provide you a holistic view of your personal finances. You can track your expenses, monitor your assets and liabilities in your personal balance sheet, and track your investments with Tiva Money as well as other advisors and brokers, all in one place.
Yes, you can. We understand that one’s goals and aspirations may evolve with time. Therefore, investors have flexibility to alter their portfolios, including goal and risk appetite, at any time. We charge no fee for this.
Our portfolios are constructed using nobel prize winning research related to Modern Portfolio Theory, pioneered by Dr. Harry Markowitz. We create globally diversified, multi-asset class portfolios using the highest quality, low-cost ETF’s (Exchange Traded Funds) offered by some of the world’s biggest financial institutions.
Asset allocation across these funds is determined by your appropriate/preferred risk tolerance level. The portfolios are constructed using extensive quantitative research, with the aim of optimizing risk-adjusted returns over a long-term horizon. We continue to monitor the portfolios and rebalance them as and when needed to maintain the risk/return profile.
To open an investment account with Tiva Money, you will need to provide some personal information like your name, email address, and phone number for identification purposes. We have put up a few questions that you need to answer once you sign up to help us know about you, your risk tolerance, your current income, and your financial goals.
The information you give is what will be used to create a tailored portfolio that will meet your needs and help you achieve your financial goals.
This is a kind of investment process that you carry out using digital platforms like Tiva Money. It involves using sophisticated technological processes to provide recommendations that help you make profitable investment decisions regularly. There is little or no intervention from humans as it is a pre-programmed self-guiding process that requires a low minimum amount of money to get started. An automated investment plan makes it easy for anyone regardless of their trading experience to start building wealth.
At Tiva Money, we understand how important it is to keep your hard-earned money safe. To help you invest and still have your peace of mind, we have ensured safety and transparency takes the lead in our business ethics. We make sure that the asset allocation recommended for you is suitable for your risk tolerance level. To ensure the safety of these assets, Tiva Money collaborates with global partners and institutions that have global recognition and strong credit profiles.
A diversified investment portfolio is a basket of investments made across geographies and offers exposures to different asset classes, including stocks, government bonds, private bonds, real estate, and commodities. At Tiva Money, we achieve diversification across hundreds of securities, by investing in low cost, highly liquid ETF’s. Using sophisticated portfolio construction strategies, the right portfolio is recommended to help you achieve your financial goals based on your goals, risk tolerance, and time horizon. Your investment portfolio can be tailored to a short-term goal or a long-term goal depending on your need as an individual. Our portfolio investments are low-risk, passive investments as they do not require active management or monitoring of accounts from an individual.
ETF means Exchange-Traded Fund. Like mutual funds, ETFs make it easy to achieve diversified portfolios. ETFs enable you to gain exposure to hundreds of securities by buying a single product. However, ETFs offer significant advantages over mutual funds, such as low cost structures and high liquidity. With an ETF, we can buy a combination of assets (tracking a suitable investment strategy or index) without having to start buying each security individually. It is diversification made easy. ETFs trade on exchanges just like stocks, so buying and selling of ETF products go on continually throughout a day, allowing us easy liquidity.
Tiva Money’s portfolios are constructed based on the Modern Portfolio Theory that emphasizes the importance of diversification in risk management and portfolio creation. ETF makes diversification easy and even has lower fees compared to mutual funds (shown as the expense ratio). This helps to reduce the fees you pay as an investor. Investing in an ETF is transparent, so you know the exact assets you are investing in and the shareholding in each asset. Because ETFs trade like stock, it is easy to access your money and liquidate holdings at will.
Rebalancing means getting your investment portfolio back to its original weighting after a deviation has occurred over time. As different investments perform differently over time, rebalancing is an important step to ensure that we stay on track with our investment strategies.
At Tiva Money, we are regularly monitoring all client portfolios to ensure that you are not at a risk higher than your chosen tolerance level as a result of the deviation that happens when the market moves up and down. To adhere to the asset allocations relevant to your risk levels, Tiva Money regularly rebalances your portfolio, if needed, by buying or selling assets when there is a tangible drift from your initial target allocation.
Compound returns are foundational to understanding the benefits of long-term investing. The compound return is the rate of return that represents the cumulative effect that a series of gains or losses has on an original amount of capital over a period of time. Compound returns are usually expressed in annual terms, meaning that the percentage number that is reported represents the annualized rate at which capital has compounded over time. Compound returns ensure that volatility, which can inflate or deflate returns, is accounted for in calculations. Also, compound returns assume that gains from previous years are reinvested at the same rate of return, thus generating a higher value at the end of the investment period. At Tiva Money, all our return rates are calculated as compound annual growth rates.
At Tiva Money, we consider your investment a long-term investment when it is planned to go on for a period of more than five years. Of course, your investment period should be determined by your financial goals. In general, longer term investment plans gain more from the benefits of compound returns, hence it is advised to start investing for your goals as early as possible.
Tiva Money receives investment in AED - United Arab Emirate Dirham, and in USD - US Dollars. Other currencies will have to be converted to either of these two.
No, you are not obligated to contribute any amount to your portfolios at Tiva Money monthly or yearly. However, once you begin an investment plan, the best way to achieve your goals is to stick to your monthly investment targets.
You can close or withdraw from your account with Tiva Money at any time with no charges attached. You are free to liquidate your investment with Tiva Money whenever you desire.
Tiva Money does not charge any extra amount during account funding. However, if you are funding your Tiva Money account from the service provider, not from Tiva Money.
The data requested from you in the relevant investment goals questionnaire, your account opening process, or personal finance dashboard, is used solely to understand your personal finance needs, and create an investment portfolio tailored to your needs. We ensure that we only request data relevant to helping you achieve your financial goals. We also use your personal information for identification purposes to protect your account from any form of fraud. Your data is well protected and will not be made available to anyone for commercial purposes.
Tax-loss harvesting is a strategy used to reduce tax liability by selling off assets that have lost value and replacing them with similar assets. This helps you to offset taxes on gains, and reduces your long term portfolio expenses (hence improving returns). At Tiva Money, we strive to improve your long-term returns by taking care of tax-loss harvesting for you (whenever needed), at no extra costs.
You can find your Tiva Money account through your local bank account, or other international banking/payment service providers that are currently acceptable. We aim to add more transfer options for you in the future, making it easier for you to manage your accounts.
Don't worry, we have got you covered. Send us a message directly to hello@tivamoney.com, and we will respond as soon as we can.
I want to have a monthly retirement income of AED 20,000, when I retire at the age of 60 Years.
Are you investing enough for retirement? Most people are not.
As per US Fed data, Americans in their 60s have average retirement funds of US$182K (not including those without a retirement account). While this sounds like a decent sum, it would result in monthly annuities of little over US$1,000. The picture is even more stark in other countries, with lower levels of financial education and access to investment products.
With Tiva Money, you can start planning for a comfortable retirement today. All you have to do is decide what is your desired level of income at retirement and when you plan to retire, and we will create a plan for you.
My child’s first name is Ali, who is 3 years old. Ali wants to go to Canada for a Bachelor's degree at a Private university. The duration of the degree is 4 years. We will need to fund Ali's living expenses in college. The course will begin when Ali turns 17 years.
Most parents dream for their children to have the best possible future, starting with their higher education. However, with education costs rising all over the world, sending your children to a top notch global university has been increasingly difficult. Many parents struggle to even estimate how much they would need to save to achieve this goal. At Tiva Money, we have done extensive economic research to offer you the right guidance. The questionnaire asks simple questions regarding your aspirations for your children’s education, such as where and when you would like to send your child for higher education. Based on your answers, Tiva Money’s data driven platform estimates how much money you will need when it is time for your children to go to college, and offers a tailor-made investment plan to help you get there.
I want to buy a 3 BHK apartment, in a Tier 1 city in the USA. I will buy the home after 4 years with a downpayment of 10%. I plan to take a mortgage loan with a tenure of 20 years to pay the rest.
For most individuals and families, their primary residence remains the single largest asset on their personal balance sheets. Indeed, real estate is the largest and the most important asset class worldwide. Buying a home is also one of the most important decisions you will ever make.
Tiva Money’s driven platform estimates how much you will need to make the down payment, based on your answers to when and where you would like to buy a house, and a few other basic questions.
To ensure that you have enough funds and are ready to take that important leap of owning your own home, Tiva Money offers customized investment plans suited to your specific goals.
Not all individuals and families have the same goals, and that’s alright. You may have a unique life goal that may not be about planning for retirement, or saving for your children’s education. Whether you want to buy your dream car, move to a new country, or indulge in some other luxury, planning in advance will make it easy to help you achieve it.
Using Tiva Money, you can create your own custom plan based on how much money you may want for your future needs. Alternatively, you can start a monthly investment plan based on how much you can save and invest each month, taking into account your current income and monthly expenses. The power of compounding will make your wealth grow fast!