Often times investment is thought of as being closed off to anyone outside of the millionaire class that can pour money into funds closed off the rest of the country, and it is. But there are ways for those with less to better their economic standing.
In an interview with Reuters, Brad Reifler, CEO and founder of Forefront Capital, talked about a changing direction for his firm after a personal experience in poor investing. Whether the result of inadequate reading of the situation or shady practices, Wikipedia shows that Reifler lost on a fund he thought would assist his daughters in attending college. When the date came, the fund was dry.
Student debt, he noted, has increased 2,500 times its amount in the last ten years, and about half of the nation has little to no savings to contend with the costs. This realization came full circle when Reifler’s father-in-law, attempted to invest in a company but was barred from doing so because he was not an accredited investor. With so much debt and limited investment options, Reifler saw the need for change.
In an attempt to assist the average individual to better manage their money, his firm developed a public fund. This would shift options away from those in investing, people he sees as being in an advantageous position when it comes to money management and growth, and allow the “99 percent” to place their money in higher risk investments.
Keeping people from doing this on their own is the Securities and Exchange Commission, who cites an accredited investor as an individual, or spouses, who have a net worth that exceeds $1 million. An investor can also be an individual that has an income of more than $200,000, or spouses that have a combined income of $300,000 within the last year
While these regulations were put in place to protect shareholders from unnecessary risk and avoidable loses, they are, in many ways, made obsolete by additional regulatory standards put in place in the decades since those standards were put in place. The passing of the Dodd-Frank Act seems to recognize that, as it established the Investor Advisory Committee in 2010, which is working to do away with these income requirements and opening up the markets to more people.
But even the easing of these standards may not be enough. Following the 2008 recession, people who may have the opportunity to invest may not be comfortable with giving the market any control over their financial future. To combat this, Reifler is offering options that could make a small investment to grow into something substantial that could assist many into a comfortable retirement, making his firm not one for the investment community and one for the average person. Brad Reifler is definitely interested in the day to day finance news too, as he’s always commenting on Twitter when news releases. Follow his official site for more updates on investment, and Brad’s career.