Brad Reifler, founder and CEO of Forefront Capital, has embarked on a new frontier by focusing on non-accredited investors.
To give perspective, an accredited investor is an investor that consistently makes 200,000 dollars a year or has a net worth of at least a million dollars.
About his company’s change in approach, Reifler had this to say:
“I’m now shifting everything to the non-accredited investor.” He says this will include 99 percent of the population that is classified as being non-accredited.
After much research, Reifler created Forefront Income Trust to give legitimate investment opportunities to the middle class investors that would like to start with smaller investment amounts. The lowest rate of investment allowed is 2,500 dollars.
It seems as though in recent times investment chances are given to the one percent wealthy, as the gap between the very well off and the middle class widens.
Reifler says his nuance programs will give clients liquidity. A preferred 8 percent return will be given to investors. Forefront will not make any money until the 8 percent is earned by clients.
Reifler’s past experiences have had an impact on his recent decisions. He invested in 529 college savings plan. But by the time his daughters were ready to attend college the fund was down by 40 percent and he lost money on the investment.
In 2005, student debt was at 400 million dollars. Now it’s over a trillion dollars. And 44% of people have less than six thousand dollars in savings.
Keifler also had another experience with his father-in-law. At 80, he gave Reifler his lifetime investment capital to invest. But there were limited opportunities because his father-in-law was not an accredited investor.
Finally, Reifler wants his company to be known as a safe place for the average investor. He said: “I’d like to bring this entire investment complexity to everybody so that they can save for their futures.”