Got a million? Not rich enough.

Hedge funds are the investment vehicles which have more flexibility and clout than ordinary mutual funds most people put their retirement money in. Since the risk is greater, the government has set up standards of wealth for someone who wishes to turn over his money to a hedge fund. Currently, one should have a net worth of $1 million including the value of a primary residence or an annual income of $200,000 for the previous two years ($300,000 for a couple) in order to "qualify" for a hedge fund investment.

Well, now it seems like the government has decided millionaires are no longer financially savvy enough to make these types of investments. The logic is that there are too many millionaires now. According to the 2004 statistics, 8% of the population is now eligible under current rules. So, let's change the rules. The SEC is now proposing that an individual have investible assets of at least $2.5 million excluding equity in a primary residence to be eligible to sign up for a hedge fund.

We should all feel better now that the government is looking out for the millionaires.