Wealth Formula Podcast

My investor club is for "accredited investors." What is an accredited investor? Well, it's not something you apply for like it sounds. Being an accredited investor is just something you are or you are not...like you are either pregnant or you are not.   An accredited investor is a defined by our friends at the SEC as someone who makes a minimum of $200,000 ($300,000 if filing jointly) or has a net worth of 1 million dollars excluding personal residence. The significance of being an accredited investor is that you can invest in things that those with less money, cannot. You can also be something called "a sophisticated investor" which has a much more nebulous definition but essentially says you know what you are doing even if you don't have that much money.   These laws were put in place long ago to "protect" the average person from predatory activity. The  irony of this all is that there is no protection for the average Joe, or pension funds for that matter, against investing in a wildly bloated stock market