How to Become an Accredited Investor: Step by Step
According to Rule 501 of Regulation D of the Securities Act of 1933 (Reg. D), an accredited investor is defined by the U.S. Securities and Exchange Commission (SEC) as a natural person with income that exceeds $200,000 in each of the two most recent years, with a reasonable expectation of the same level of income in the current year. For spouses, a joint income that exceeds $300,000 is required. An accredited investor may also be a natural person with an individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million. This net worth excludes the value of the person’s primary residence.