“Are you missing out on investment opportunities only accessible to the wealthy within the exclusive country club?”
Don’t be intimidated! An accredited investor is someone who meets specific financial qualifications set by the U.S. Securities and Exchange Commission (SEC), giving them access to investment opportunities that aren’t open to the general public. Here’s what qualifies someone:
Income: You need to have an individual income of at least $200,000 (or $300,000 with a spouse) for the past two years and expect to continue earning that or more.
Net Worth: A net worth of at least $1 million, not including your primary home, also makes the cut.
Professional Background: If you hold certain financial certifications—like a Series 7, Series 65, or Series 82 license—you’re in.
Entities: Trusts, partnerships, or corporations with assets over $5 million or where all owners are accredited investors qualify too.
Achieving accredited status opens the door to a wider range of investment opportunities, including private equity, hedge funds, and other high-reward ventures that can supercharge wealth growth.
Aside from those those definitions you then have to “certify”. If you are investing in a 506B offering that allows for self-certify then you sign off on your own accord. With 506C offerings you must third-party certify. These days there are many third party vendors that will review your financials (you submit to them) and they certifiy you and provide letters. There are some cons with this approach as it can be costly ($40-100) per letter and there is some argument over the expiration time length on those letters. Best practice that we do is a third party letter from a CPA or lawyer professional. If you need simple form letters to provide and make your professional’s job easier email team@thewealthelevator.com. Most times you should be able to get this completed without cost from your professional and provides the simplest method to substantiate your financials. One you have this letter, upload to your signing portal or email to our team and you are on your way!
NOTE: Definitions change over time and especially the professional background criteria to expand the criteria those with less net worth and income. Consult the SEC website for the latest.