Do you know that there are Exclusive Financial Products for Rich People?
Yes, This is true. Rich don’t invest in Common Stocks, Bonds, Mutual Funds and Rental Properties like most of the Middle class people. In fact, Portfolio Management Services and Wealth Management Services are also not for Rich but they are for Upper Middle class people. But these financial products are marketed as a products for Rich people.
So Which are the exclusive financial products for rich people?
Well, these are the seeding stage Businesses having extremely high growth potential say 300-700% per annum. It is also known as Private Equity Investment.
But unfortunately, These Investments are only for “Accredited Investors” in other words for “Rich Investors”.
So What it means by Accredited Investors?
According to Wikipedia –> Accredited investor is a term defined by various securities laws that delineates investors permitted to invest in certain types of higher risk investments, limited partnerships, hedge funds, and angel investor networks. The term generally includes wealthy individuals and organizations such as a corporation, endowment, or retirement plans.
In the United States, for an individual to be considered an accredited investor, they must have a net worth of at least one million US dollars or have made at least $200,000 each year for the last two years ($300,000 with his or her spouse if married) and have the expectation to make the same amount this year." This rule came into effect in 1933 by way of the Securities Act of 1933.
In Canada, the same prerequisites apply, however one's net worth must be a minimum of one million dollars not including the value of the principal residence.
Unfortunately, Middle Class & Upper Middle Class people are not allowed to invest in these Investments simply because they don’t fulfill the criteria of Accredited Investors.
It is the Law of Accredited Investors which prevents people other than Rich to Invest in these high growth potential Investments. And the Governments and Financial planners all around the world say to the Middle Class that, these Investments are not made for you because they are extremely risky.
But the reality is that, these Investments are made for Rich people and that’s why the laws prevent Middle class to invest in them. These Investments have so much potential that, it can literally print money for the Investors.
Most of the people around this world have no idea about these seeding stage Businesses, Angel Networks. Hedge Funds & Limited partnerships.
But all of these are the Investments exclusively for Rich People…..!!!!!
So if you want to Invest in these Investments than first of all be an Accredited Investor….
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