Who’s an Accredited Investor? This Guy!
Rich people have secret ways of getting richer. Like stocks tips you overhear at the Country Club. Poor people are left out for their own good because we wouldn’t want them getting ideas above their station.
This is what ‘Accredited Investor‘ status is all about as far as I can tell. The government protects its more vulnerable citizens by setting up a barrier to them throwing money at investments with a high risk/reward flavor.
Lots of interesting investing opportunities are off limits to any except those which can establish one of the following;
- An annual income of $200,000 or more for the past two years and expected to continue in the future.
- An annual combined income of $300,000 with a spouse for the past two years.
- An individual net worth (or joint net worth with a spouse) of over $1 million, excluding the value of your home.
The laughable part about this is that for several websites now, I have achieved ‘accredited investor‘ status because I checked a box that said I was.
Confidence is Everything.
Seems the real barrier might be just having the gall to declare oneself an ‘accredited investor‘.
Anyway, Here I am world, now what?
The biggest thing now in play for an accredited investor is “unregistered securities“. This means there is no safety net from the U.S. government when things go south, hence the Mother Hen nature of regulations and red tape to get here.
The biggest playing fields for the accredited investor seem to be these 3;
Well, I like my real estate in my greedy little hands, so that was out for now.
I like the idea of startups, but not for a big pile of money.
Farmland really appeals to my sense of asset diversification. There is only a limited amount of it. We all need to eat. I think I will park some capital here. Stay tuned!
“History is filled with the sound of silken slippers going downstairs and wooden shoes coming up.” -Voltaire