Best Investments for Accredited Investors
According to the US Securities and Exchange Commission, an accredited investor is a person with an income over $200,000 in each of the two most recent years, with a reasonable expectation that they will earn the same level of income in the current year. For spouses, they must have a joint income that exceeds $300,000. This is dictated in Rule 501 of Regulation D of the Securities Act of 1933 (Reg. D). An individual may also qualify as an accredited investor if they have a net worth that exceeds $1 million, either alone, with a spouse, or with a spousal equivalent. Net worth is calculated by adding up all your assets and subtracting all liabilities. This calculation excludes the value of the person’s primary residence. Also included in the definition are limited liability companies (LLC) with $5 million in assets.