Accredited Investors are sanctioned by the SEC and defined by the IRS. Being “accredited” simply means that, in the eyes of the Securities and Exchange Commission, you are special…and are entitled to investments that the layperson is not. This special rule, otherwise known as “Regulation D” is something of a mystery for most people.

What does all of this mean for you? Nothing, unless you have a net worth of at least $1 million. If not, then you’ll probably have to poke and prod your way through garden variety mutual funds and accept lower rates of return on your investments.

Of course, being an accredited investor is not the only way to become wealthy. You could learn how to invest in stocks, and that would be much better than a mutual fund and less risky than a hedge fund..Warren Buffet never needed anything but stocks to get started…and neither do you.

You might also like

1. Average Returns vs. Real Returns: Are Your Investments Earning What You Think They’re Earning?
2. Will You Outlive Your Investments?
3. The Trouble With Mutual Funds
4. Investing in Bonds……Fixed Bonds

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This entry was posted on January 6th, 2012 by David C Lewis, RFC. Edits may have been made to keep this entry current. · No Comments · Investing