How To Become An Accredited Investor?

Posted in Career Blog

To become an accredited investor one needs to achieve a particular financial status as this is a designation conferred by the US Securities and Exchange Commission on individuals, corporations and companies that have been granted a special privilege of taking part in investment programs or opportunities that have to comply with strict regulations put into force during the great depression of the US. The Individual, company or corporation must have enough capital or financial security to partake in high-risk investments with no risk to the long-term effects of the economy.
Here are some pointers on how to become an accredited investor:

1. Increase Your Net Worth
If you are an individual you will need to increase your net worth to one million US dollars. This is a stipulation put in place by the United States Securities and Exchange Commission. This is the first requirement of being recognized as an individual accredited investor.

2. Alternatively

If this is not possible the single investor will have to show a gross income of 200,000 US dollars in the most recent two consecutive years. If showing such as sum is not possible as a married couple may apply to be an accredited investor to the Commission by showing a combined gross income of 300,000 USD for the past two consecutive years. This is the first step to becoming an accredited investor.

3. Send In Your Documents
You will need to send in your applications along with your attested copies of your bank documents, such as your bank statement that clearly shows the last tow consecutive years income – month by month. You will also have to send in documents that show your address. This could be a utility bill, driving license or your international passport. Proof of identity will normally be a government document containing your photograph.
A list of documents required along with the application forms may be downloaded from the Commissions web site or got form the office personally.

4. Linking Your Bank To Your Account
You will be required to link your bank account with the Accredited Investors account that will be opened for you. You will have the choice to trade in the investment programs reserved for accredited investors such as the endowment or retirement investment programs. These are highly regulated and offer great returns.

5. Companies May Also Become Accredited Investors
In companies where all the partners are accredited investors and where the company has a net worth of 5 million US dollars. Charitable organizations can achieve the same status if their total assets equal 3 million US dollars.
Investing involves high risk. The regulations implemented in the US were designed to prevent another crash like the one experienced in 1929 by limiting the number of investors partaking in investing programs on the exchanges. So, the only way to make it as an accredited investor is to bring up your financial status.

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