Assumptionswww.instutrade.com/education/

KeyYearsIBTax RateTaxIB NetHFTax RateTaxHF NetReinvest147,5000.314,25033,250100,0000.550,00050,000247,5000.314,25033,250100,0000.550,00050,0003155,0000.577,50077,500200,0000.5100,000100,000225,0004155,0000.577,50077,500200,0000.5100,000100,000225,0005155,0000.577,50077,500200,0000.5100,000100,000225,0006300,0000.5150,000150,000200,0000.5100,000100,000225,0007300,0000.5150,000150,000200,0000.5100,000100,000225,0008300,0000.5150,000150,000500,0000.5250,000250,0001,350,0009300,0000.5150,000150,000500,0000.5250,000250,0001,350,00010450,0000.5225,000225,000500,0000.5250,000250,0001,350,000Total HF Wealth Total2,210,0001,086,0001,124,0002,700,0001,350,0001,350,0005,175,0006,525,000Total Comp' IB AssumptionsFAAssociateVP/EDMDSMD Basic40,00080,000200,000300,000500,000Bonus7,50075,000100,000150,000650,000Total Comp'47,500155,000300,000450,0001,150,000

Total Comp' HF Assumptions ($1Bln HF)JPAJPMSPMPrincipalBasic100,000200,000500,000300,000Bonus0187,5001,100,000150,000Total Comp'100,000387,5001,600,000450,000

N>B> The sheets in this file although approximate can be used to input your own expectations and assumptions to map out a 10 year strategy for yourself. Feel free to change formulas and stress test the parameters. The IB sheet and the HF sheet have hard coded numbers for expected salaries in the Investment Banking and Hedge Fund Industry. These can be changed over time.

IBwww.instutrade.com/education/ AssumptionsYears12345678910

Current Assets / LiabilitiesWealthNet Property / Equity Ownership0IA Net Property / Equity Ownership00000000000Property Loan / Principal 0Property Loan / Principal00000000000Property Value0Property Debt Service00000000000Property Debt Service %0.00%IA Property Value00000000000Annual Property Value Increase0.00%
home: The x% in value you expect your property to increase by each year IA Property Wealth 000000000000Net Property Principal Paydown Rate0.00%
home: Own x% more of your property each year

Current Savings0IA Stocks & Bonds000000000000Cash at Bank0IA Annual Salary33,25033,25077,50077,50077,500150,000150,000150,000150,000225,000Stocks & Bonds Portfolio0Savings Ratio10.00%3,3253,3257,7507,7507,75050,00050,00050,00050,000125,000Student Loan -30,000Student Loan (Linear Paydown)-30,000-27,000-24,000-21,000-18,000-15,000-12,000-9,000-6,000-3,0000Trading Account0Student Loan Amount Paid0-3,000-3,000-3,000-3,000-3,000-3,000-3,000-3,000-3,000-3,000Risk Free Rate1.00%
home: % received on cash in bankSavings for Cash at Bank 03253254,7504,7504,75047,00047,00047,00047,000122,000IA Cash at Bank03256445,38110,02314,57361,281107,055151,914195,876313,959IncomeIA Trading Account00000000000340,634Net Salary0IA Wealth Change% Net Salary increase10.0%
home: Your salary increases by x% per yearWealth0-26,675-23,357-15,619-7,977-42749,28198,055145,914192,876313,959340,634Savings Ratio0.00%Annual Savings0Investment Income %0.00%
home: Your medium to long term investments increase by x% per year.

Inflation3.00%
home: Reported annualised CPIIt is more likely that you will save more from Year 6If you get to MD by Year 10, you might be able to buy a studio Apartment in central London for cashWe have not included the numbers for the stock portion of the Bonuses because you may never receive it. If you want to include it, feel free to do so. It wont make much difference.

HFwww.instutrade.com/education/ AssumptionsYears12345678910

Current Assets / LiabilitiesWealthNet Property / Equity Ownership0IA Net Property / Equity Ownership00000000000Property Loan / Principal 0Property Loan / Principal00000000000Property Value0Property Debt Service00000000000Property Debt Service %0.00%IA Property Value00000000000Annual Property Value Increase0.00%
home: The x% in value you expect your property to increase by each year IA Property Wealth 000000000000Net Property Principal Paydown Rate0.00%
home: Own x% more of your property each year

Current Savings0IA Stocks & Bonds000000000000Cash at Bank0IA Annual Salary50,00050,000100,000100,000100,000100,000100,000250,000250,000250,000Stocks & Bonds Portfolio0Savings Ratio10.00%5,0005,00010,00010,00010,00025,00025,000150,000150,000150,000Student Loan -30,000Student Loan (Linear Paydown)-30,000-27,000-24,000-21,000-18,000-15,000-12,000-9,000-6,000-3,0000Trading Account0Student Loan Amount Paid0-3,000-3,000-3,000-3,000-3,000-3,000-3,000-3,000-3,000-3,000Risk Free Rate1.00%
home: % received on cash in bankSavings for Cash at Bank 02,0002,0007,0007,0007,00022,00022,000147,000147,000147,000IA Cash at Bank02,0003,96010,88117,66324,31045,82466,907212,569355,318495,211IncomeIA Reinvested HF Capital00225,000450,000675,000900,0001,125,0002,475,0003,825,0005,175,000Net Salary0IA Trading Account000000000005,695,211% Net Salary increase10.0%
home: Your salary increases by x% per yearIA Wealth ChangeSavings Ratio0.00%Wealth0-25,000-20,040214,881449,663684,310933,8241,182,9072,681,5694,177,3185,670,2115,695,211Annual Savings0Investment Income %0.00%
home: Your medium to long term investments increase by x% per year.

Inflation3.00%
home: Reported annualised CPIIt is more likely that you will save more from Year 6Assume bonuses are paid onshore and Tax is paid (This doesnt have to be the case)Assume Re-invested portion of Bonus' doesnt make any Annual Return - (more than likely you will)

Trade_Yourselfwww.instutrade.com/education/ Targeting 20% Net ReturnYears1234567891011Annual % Return20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%Exposure Rate55555555555Margin 25,00050,000100,000200,000400,000800,0001,600,0003,200,0006,400,00012,800,00025,600,000Exposure 125,000250,000500,0001,000,0002,000,0004,000,0008,000,00016,000,00032,000,00064,000,000128,000,000Optional IB / HFIB / HFIB/HFHFHFHFHFHFHFHFTP 1Months to 1mln 63Trading Days to 1mln1320Calender Days to 1mln 1890Assumptions;-

1. 20% Return per anumn on a long / short multi asset portfolio2. 5 times leveraged trading account - Margin requirement is higher in the United States for Retail Investors - Trading Accounts in United States have 35-50% Margin Requirement or 2-3 times leverage. 3. (Tipping Point 1 ) = You trade for 2-3 years doubling your account each year. You can then either interview the Investment Banks and Hedge Funds to hire you or set up yourself as a professional

Example_To1mlnwww.instutrade.com/education/

AssumptionsYears12345678910

Current Assets / LiabilitiesWealthNet Property / Equity Ownership75,000IA Net Property / Equity Ownership75,00083,25091,25399,015106,544113,848120,933127,805134,471140,936147,208Property Loan / Principal 275,000Property Loan / Principal275,000266,750258,748250,985243,456236,152229,067222,195215,529209,064202,792Property Value350,000Property Debt Service8,2508,0037,7627,5307,3047,0856,8726,6666,4666,2726,084Property Debt Service %3.00%IA Property Value350,000357,000364,140371,423378,851386,428394,157402,040410,081418,282426,648Annual Property Value Increase5.00%
home: The x% in value you expect your property to increase by each year IA Property Wealth 75,00082,24897,630112,908128,092143,192158,218173,179188,085202,947217,773142,773Net Property Principal Paydown Rate3.00%
home: Own x% more of your property each year

Current Savings75,000IA Stocks & Bonds75,00076,50078,03079,59181,18282,80684,46286,15187,87489,63291,42514,925Cash at Bank0IA Annual Salary40,00040,80041,61642,44843,29744,16345,04645,94746,86647,80448,760Stocks & Bonds75,000Savings Ratio10.00%4,0804,1624,2454,3304,4164,5054,5954,6874,7804,876Trading Account1,500IA Cash at Bank0Risk Free Rate1.00%
home: % received on cash in bankIA Trading Account25,00050,000100,000200,000400,000800,0001,600,0003,200,0006,400,00012,800,00025,600,00025,575,000Hours Per WeekIA Wealth ChangeIncomeWealth150,000208,748275,660392,499609,2741,025,9981,842,6803,459,3306,675,96013,092,57925,909,19725,732,697Net Salary40,0001st Half 2nd Half% Net Salary increase5.0%
home: Your salary increases by x% per year

Savings Ratio10.00%Months to 1mln 63TP 2Tipping Point 2 = When you make your first Million from trading - (63 months)Annual Savings4,000Trading Days to 1mln1313Investment Income %5.00%
home: Your medium to long term investments increase by x% per year. Calender Days to 1mln 1916Inflation3.00%
home: Reported annualised CPI

Use this sheet to input your own assumptions of the next 10 years of your life on the left hand sideThe Assumptions include property ownership (Equity +Debt), Savings (Stocks, Bonds, Cash), your own trading account, risk free rate as set by Central Bank, Salary, an assumed growth in salary (%), an amount you save each year (Ratio), Income from investments and infaltion rate.

You should enter your assumptions and stress test the following;-

1. Enter zero's for every year in the IA Trading Account i.e. assume you do not have a trading account and do not know how to trade and run a portfolio making an inflation adjusted 20% per year on a 5 times leveraged trading account. 2. If interest rates go back to 2007 / 2008 levels (Risk Free Rate) - Outside of the U.S. this will increase your Property Debt Service % - This is the interest rate on your mortgage. 3. Reduce Annual property Value Increase. 4. Reduce how much you pay off of your mortgage each year - Net property Principal Paydown Rate. 5. Enter the value of your savings (Cash + Stocks and Bonds)6. Enter your salary and a reasonable assumption for salary growth. 5% is well above average wage growth for the last decade. 7. Reduce Investment Income - 5% is well above average Long term Annual Rate on U.S. Treasuries, UK Gilts and Dividends8. Increase inflation - stress test the notion that the real inflation rate is not what the government reports and is much higher.

What you are doing here is stress testing your real wealth (Inflation Adjusted) for the next 10 years.You need to ask yourself the following questions. If you dont like the answers do something about it. Trading is one way to exit entrapmentWhat if property prices dont go up by as much as I think? What if I fall on tough times and I cant pay my mortgage? What if Interest Rates double? Can I still live? Why do I have Cash in the Bank earning Nothing? Maybe I should use this to trade / invest / start a business. Why am I not Trading ? And getting a proper trading education so I can make consistent returns from the both up and down markets? What if my salary doesnt go up by as much as I expect.?What if I dont get any investment income or very little. Can the money be used / invested better elsewhere? What if the government is lying about the real inflation rate? Maybe I should account for higher inflation?