Wiser Wealth: What You Need to Know if You Want to Become an Accredited Investor


You might have heard about the potential accredited investors have to see much bigger returns on their investments.

It’s possible that made you want to become one yourself, but there are also numerous requirements you need to be aware of first.

Forbes recently delved into how you can get started and some of the pitfalls you need to be mindful of.

Going beyond typical stocks and bonds will give you access to things like investing in hedge funds, angel investments, and venture capital funds.

These are all investment options that can prove very lucrative for the right person. But the bigger the investment, the bigger you can lose.

That is why to become an accredited investor you have to meet some clear-cut criteria. The main one is your salary. As an individual, you have to have had a salary exceeding $200,000 for at least two years to qualify as an accredited investor. Married couples need to be above $300,000.

Alternatively, if you are not working, you can have a net worth that is higher than $1 million. These restrictions based on your income are meant to ensure only people who are good with money have access to these types of investments. The belief is that will make you less likely to do something unwise to ruin yourself financially.

Fred Hubler, Chief Wealth Strategist for Phoenixville-based Creative Capital Wealth Management Group, a wealth management practice that services families in 28 states and specializes in retainer-based planning and alternative investment strategies, has used accredited investments since the company was founded in 2003.

“We wanted to bring something to the market that was different than stocks, bonds, and mutual funds. So we built our firm around providing access to accredited investments for accredited investors” says Hubler.

Similarly, it is assumed you are knowledgeable about investments if you have the right experience. Specifically, that can mean having licenses with the Financial Industry Regulatory Authority.

You can also be eligible if you happen to work for a company that offers these types of investments, with the assumption that you would already understand the risks associated with them.

Becoming an accredited investor is justifiably not for everyone. But if you take proper precautions and know what you are getting into, they can be a great addition to your assets.

For more that will help you with starting out as an accredited investor, check out the article from Forbes here.


Want to know if you’re on the right path financially? CCWMG’S Second Opinion Service (SOS) is a no-obligation review with one of  Creative Capital Wealth Management Group‘s Wealth Strategists. 

It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.





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