Accredited investors enjoy a wealth of finances and privileges regarding how they can invest said finances. If you’ve come to the point where you qualify for such a status, or believe that you do, it’s important you know exactly what those qualifications are. The world of investment is vast and complicated. Anyone preparing to participate in it more deeply should have the best information available. That said, here are some of the most significant accredited investor requirements.
What Are Accredited Investors?
According to US Securities Law, an accredited investor can be an entity or a natural person. With respect to natural persons, it is generally someone who earns a yearly income of $300,000 (if married, and in conjunction with their partner) or $200,000 (if single, or married, but verifying only himself or herself). This income must have been maintained for a minimum of two straight years, and there must be a reasonable expectation of achieving such income in the current calendar year. Alternatively, the individual individually must have a net worth exceeding $1,000,000, or together with his/her spouse must have a net worth of $1 million or more.
Do You Have to Apply?
No, not generally. Either you are an accredited investor, or you’re not. In fact, you won’t see any real documentation until you apply for your first large-scale investment. The securities company in charge of handling your investment will give you a survey to complete once you get started with the investment process, which is how they will know whether or not you meet the necessary accredited investor requirements. Some deals will require verification of your accredited investor status; the process is a bit cumbersome and annoying, but necessary for you to invest in those deals.
Are There Any Other Steps to Take?
Other than possible verification for some deals, the answer is another solid no. Once you’re recognized as meeting all accredited investor requirements, all that’s left for you to do is invest! One of the best things about being an accredited investor is the stark amount of investment options available to you. There are numerous resources available to help you learn as much as you can as you embark upon this new venture.
