Brad Reifler is a career entrepreneur who is most well known for his work with Forefront Capital. Since establishing the company in 2009, which came on the heels of his success with Pali Capital, Forefront Capital has grown by leaps and bounds. What makes Reifler and his work different is that he runs a boutique brokerage that focuses on helping out the ‘little investors’. Reifler has first hand experience with what it likes to work as a non-accredited investor and that has been the primary fuel behind his newest machine: Forefront Income Trust.
Reifler first dipped into investments when he poured his savings into a college savings plan that consisted of over 529 different options. Over the years his investment lost money by 40% and he wasn’t alone in that loss. Moving on from there Reifler went on to become a successful investor and he was eventually given the keys to his father in law’s life savings in order to invest. As it turns out, his father in law wasn’t an accredited investor either and as a result he was shown several closed doors. SO what is an accredited investor exactly and why does it matter so much?
According to the Security Exchange Commissions (SEC) an accredited investor is someone with a net worth of $1 million excluding real estate, or someone who makes more than $200,000 a year. Sounds like a pretty huge number, doesn’t it? Well, that is because it is. Accredited investors are given stock priority when it comes to making investments because their money makes for bigger returns as it pertains to brokers. As a result non accredited investors are effectively ostracized and relegated to fringe investments, thus making it hard for a lower class investor to ever actually rise through the system. Doesn’t sound too fair and that is what Brad Reifler wants to address.
So in order to make a change in the investment world Reifler decided to establish the Forefront Income Trust. This is a public fund that can be invested in by anyone who meets the low $2,500 threshold. This fund isn’t attached to the stock market and as a result has a much higher floor with a respectable ceiling. This gives investors the opportunity to slowly grow, rising in a way that promotes longterm viability. This could be a game changer for all of those non accredited investors who lost their way after the 2008 financial crash.