Brad Reifler Offers Investing Advice for 99 Percenters
Ninety-nine percent of Americans are prohibited from investing in hedge funds, commodity funds and public funds because they do not meet the thirty-two year old Securities and Exchange Commission (SEC) rules of net worth and income guidelines. These funds are left for accredited investors who are persons with an individual income of over $200,000 or an individual with a net worth exceeding $1 million or a corporation, according to the SEC. Brad Reifler, Founder and CEO of Forefront Capital, believes their should be more investment options available for the 99 percenters and in a recent Reuters’s article he shared his advice on investing to avoid common pitfalls.
Mr. Reifler suggests that investors keep their investment options clear, being careful how much you invest and not to put all your money into the stock market. Additionally, be very concerned about the safety of your money and develop trust with those you hire to make investment decisions for you. Reifler’s Forefront Capital funds cater to the 99 percent of investors that the SEC has deemed to risky to allow into a wider variety of investing options. He supports establishing nuance programs that would give these types of investors liquidity and return, wherein a small investment would have the potential to provide a substantial retirement account.
Brad knows quite well the limited options available to the majority of Americans. When his father-in-law retired from his RV repair business, he asked Brad to invest his life savings. Yet so many options were not available due to SEC regulations, thereby limiting the amount of return he would be able to acquire. Mr. Reifler shares another scenario on Twitter where he had started a 329 college savings plan for his daughters’ college tuition, yet when the time came to withdraw the funds, it had less money than he had originally invested. Both of these personal experiences stuck with him. Now Brad focuses his attentions on those 99 percent of investors that are overlooked in the investment world.
Thankfully, change in the accredited investor rules may be on the horizon. The SEC Investor Advisory Committee is recommending significant updates to the accredited investor net worth and income guidelines. The current rules were established thirty-two years ago. The committee is asking to replace the present monetary tests with tests concerning financial knowledge, professional credentials and the individuals education level. Another option presented is to develop tests to measure a persons financial sophistication.
About.me indicates that the Brad Reifler formed Forefront Capital is headquartered in New York City, and was founded in 2009 as a boutique investment banking and wealth management firm. Their strong coalition of business, banking, portfolio management and distribution leaders has set the firm as leaders in their ability to advise and execute strategic investment options for their clients.