Two less than satisfying investment situations led Brad Reifler, Founder and CEO of Forefront Capital, to readjust his target audience from “accredited investors,” as defined by the Securities Commission, to middle-class America and the overlooked 99 percent of investors. The first consisted of a personal investment in a college savings fund for his daughters which essentially lost money and the second was the discovery that his father-in-law did not make the cut as an accredited investor despite 35 years of saving for retirement.
Reuters wrote that this adjustment in direction has led Reifler to develop a fund designed specifically for non-accredited investors who have limited options in which to invest.
Reifler’s five tips, from a November 2014 Reuters press release are:
• Be careful on how you invest your money. Consider risks, charges, and expenses. Take an inventory of your assets and create goals.
• Be concerned about the safety of your money.
• Don’t put all your money into the stock market.
• Know who is going to be investing your money. Develop trust in the manager of your funds.
• Recognize why you’re investing. Consider the investment objective. Be careful with how much you invest. If you see something working, then add to it.
In conclusion, Reifler states that the financial crisis of 2008 caused numerous non-accredited investors to hesitate. Designed to allay those fears, Reifler’s fund will provide liquidity and return while educating the investor in the nuances of the market. “Through the power of compounded returns,” Reifler said, “if 99 percenters had a better option to invest, they could potentially watch a small investment grow into a substantial retirement account.”