What is an accredited investor?

In case you wish to invest in private placement investments, the SEC has rules that you must follow in order to qualify to invest your funds.

Investor accreditation is a designation given by the U.S. Securities and Exchange Commission (SEC) to those

tt deems financially secure enough to need less protection. They are "accredited"— or approved—to invest in

higher-risk, more complex investments.

There are two main ways a person can qualify as an accredited investor:

• Earn an individual income of at least $200,000 a year, or if they're married, a joint income of at least $300,000 per year, for the last two

years, and have reason to believe this income stream is steady and will continue.

• Have a net worth of at least $1 million (either independently or with their spouse) excluding the value of their primary home.

Dan