Today on the Finance Flash Go! podcast, I’ll fill you in on what it means to be an accredited investor.
What is an accredited investor?
An accredited investor is an individual or a business that is allowed to invest in certain vehicles or opportunities that may not be registered with authorities. They are allowed to do this by satisfying at least one requirement with regards to factors, usually income or net worth.
In the U.S, the definition of an accredited investor is madeby SEC in Rule 501 of Regulation D.
To be classified as an accredited investor, a person must have an annual income exceeding $200,000 ($300,000 for joint income) for the last two years. They must also have an expectation of having the same or a higher income in the current year. An individual must have earned income above the thresholds either alone or with a spouse over the last two years.
A person is also considered an accredited investor if they have a net worth of more than $1 million, either individually or jointly with their spouse.
There are other requirements that apply to business entities and such but not to individuals.
How to Find the Perfect Balance Between FIRE & YOLO
5 Easy Steps for Physicians Who Hate Personal Finance
Finance Flash Go! Episode #45: Small Cap vs. Mid Cap vs. Large Cap Stocks
My Stock Portfolio Is Better Than Your Financial Advisor’s
Stress Free Stock Market Investing Is Easier Than It Seems!
Important Money Lessons That I Learned From My Wife
Finance Flash Go! Episode #44: Understanding Growth vs. Value Stock
I really hope that you all enjoy the Finance Flash Go podcast! We plan to release a new episode every weekday answering important finance questions. If you ever want to submit a question to our podcast, send an e-mail to [email protected]
And please subscribe and give us a 5-star rating if you enjoy the podcast! It helps us continue our mission of helping all of us to achieve financial well-being!