What does it mean to be accredited?
Accredited investors are those individuals classified by the SEC as qualified to invest in complex or sophisticated types of securities. To be considered an accredited investor in the United States, an individual must meet at least one of the following criteria:
- Income requirement: The individual must have an annual income of at least $200,000 for the past two years ($300,000 if married and filing jointly), or have a net worth of at least $1 million, excluding the value of their primary residence.
- Professional certification: The individual must hold a Series 7, Series 65, or Series 82 license from the Financial Industry Regulatory Authority (FINRA) or a similar professional certification that qualifies them as knowledgeable about investment risks and opportunities.
Once accredited at F Street, your status as an accredited investor is valid for a period of 5 years.
Benefits of Being Accredited
- Access to a wider range of investment opportunities: Accredited investors have access to a broader range of investment opportunities that are not available to non-accredited investors. This includes private real estate, hedge funds, venture capital, and other types of alternative investments.
- Ability to invest in early-stage companies: Accredited investors can invest in early-stage companies that are not yet publicly traded. These companies often have significant growth potential, but are considered higher-risk investments.
- Higher potential returns: Alternative investments such as private real estate and venture capital can offer higher potential returns than traditional investments such as stocks and bonds. Accredited investors can take advantage of these higher potential returns by investing in these types of opportunities.
- Opportunities for diversification: Accredited investors can diversify their investment portfolio by investing in a wider range of assets, including real estate, commodities, and private equity.
- Access to exclusive investment opportunities: Accredited investors may receive exclusive access to investment opportunities that are not available to the general public. This can include opportunities to invest in top-performing hedge funds or to participate in private real estate deals.