Brad Reifler, CEO of Forefront Capital, is hoping to make investments more available to the middle class. In light of that, his company has announced a “Forefront Income Trust” account he hopes will achieve that goal.
For years only “accredited investors” could make certain investments. This was designed to protect people from bad investments, but to be accredited one must be a corporation, or an individual with an income of $200,000 or a net worth of of more than $1 million.
This precludes most of the public, Reifler said.
His new program will allow non-accredited investors to have access to the same lucrative investments that the one percent have. The rules were put in place 30 years ago, and since then there has developed more oversight and control in investing. Instead of requiring a person to have a certain amount of assets, the new requirements will be that a person know about investing.
In the new system a person’s education, credentials, experience and things like this would be primary consideration. There could also be a financial sophistication test invented at some point.
The new investment Reifler is creating will allow a minimum investment of $2,500 that can be withdrawn every quarter. He said this would open more opportunities for the middle class.
There were two key events that led Reifler to want to find this way for investors. The first thing that happened was he created a college savings account for his daughter, and that ended up less than what he originally invested. The second thing was finding very limited options when he wanted to help his father in law invest his savings. He discovered investment opportunities were limited for those that were not the wealthiest people.
His About.me says that Reifler started his own investment company out of college, and that firm was sold to REfco in 2000. He founded Pali Capital in 1995, and was CEO until 2008. That company grew to the point of having $200 million per year in revenue and offices around the world. He started Forefront Management Group in 2009.
Reifler graduated from Bowdoin College with a degree in economics and political science. Reifler Trading Company was the business he started after graduating. His first business specialized in global derivatives. Reifler is now described as a serial entrepreneur, and expanding investment opportunities is his latest venture. His latest venture is designed to help more people get involved in investing, and while there is some risk, Reifler said he has safeguards in place to protect investors and customers.
“I would like to be known as a safe place where people can find investment alternatives,” Reifler said. “I’d like to bring this entire investment complexity to everybody so that they can save for their futures.” More of his investment tips appear on Reuters, where they post several articles about Brad’s career.