Prepare your Financial Plan

Here are sample financial plans for people at various ages:

Age 25
Age 35
Age 60

This financial plan shows how much you can withdraw from your savings at retirement to last for a lifetime, net of inflation. It allows you to see the effect of changing your savings and investing them to earn a higher return.

You can prepare your own financial plan using this tool.

Hedge funds can make big losses

When you invest in a hedge fund, you are giving money to a fund manager to speculate for you. The fund can speculate in any type of assets - shares, currencies, commodities. They can borrow money, i.e. leverage, to speculate in bigger stakes. The fund manager can make a lot of profit, but can also make a humongous loss. The hedge fund charge high fees, usually 3% or more of the invested assets, and can also take a large part of the profit, e.g. 20% of the gains. But, when the hedge fund loses big on the bets, they do not compensate the investors for the losses. Hedge funds managers can be multi-millionaires.

It can be reckless for trustees of trust funds or corporate funds to invest their money in hedge funds. But many of them do. This is why hedge funds are so successful. Here is a story of a hedge fund that performed badly this year. 

Financial planning test

How much do you know about financial planning? You can do this test.
http://tankinlian.com/admin/file.aspx?id=458&PK=67932871ae14102ea52e240ed918ec56

The economic collapse

Watch these videos:
http://www.youtube.com/watch?v=d2tgHW1w1lE&feature=related
http://www.youtube.com/watch?v=aG3zylFeRxk&noredirect=1

Financial Planning Tool and Handbook

You can use this financial planning tool to carry out a projection of your savings and investment yield, net of inflation. This tool helps you to make the right decision for your future. You can read the handbook here.