Brad Reifler, founder of Forefront Capital, has decided to take his firm in a new direction. In a recent Reuters article, Reifler gives the average Joe some investing advice as well as explains why he is unhappy with the direction of the investment world. Some helpful advice for the average middle class person is to find an investment manager you can trust. Most average Joe’s don’t know a lot about investing and will find an investing firm to manage their money. Investors should always be concerned about the safety of their money and invest wisely considering fees, risk and expenses. Investors shouldn’t put all their money into the stock market and must always be aware of the reason they are investing. Having clear cut goals is important when investing money.
Reifler explains further on CrunchBase that diversifying funds can be difficult for the average middle class person because there are restrictions. In many instances, investors are required to have a large net worth to be able to invest in certain things. This ensures that the 1 percent can invest but the rest of the population doesn’t have a chance. The investment world is dominated by the wealthy because of these restrictions.
Learning from experience with his father-in-laws investing dilemmas, Reifler decided to take his firm in a different direction allowing the 99 percent a chance to invest. Where Forefront Capital was mainly focused on those who were accredited investors with a net worth over $1 million and income more than $200,000 a year, Reifler decided to design a plan specifically for the 99 percent who are overlooked in the investment world. According to the Securities and Exchange Commission an accredited investor must have a net worth of more than $1 million not including primary residence and must make more than $200,000 individually or $300,000 with spouse for two consecutive years. Not many people fit that bill, and Reifler would rather have Forefront Capital be a company for all people rather than just the 1 percent. Wikipedia really has the full story and insight into Brad Reifler’s career.