An Innovative Investment Fund That Caters to the 99 Percent
NEW YORK, NY–(Marketwired – Dec 16, 2014) – The investment world is dominated by 1 percenters who strategize and invest in hedge funds, public funds and commodity funds that the government doesn’t allow for those with less capital: the majority of America. Diversification is key to investment success but it’s a strategy that has typically been reserved for the wealthy. Founder and CEO of Forefront Capital Brad Reifler wants to change this practice.
“There have been recent experiences that have bothered me so much I’ve decided to change the entire direction of my firm,” Reifler explained.
Years ago, Reifler invested in a 529 college savings plan that was available to anyone regardless of wealth or income. However, when it was time for two of Reifler’s girls to attend their universities, the fund was actually down 40 percent and worth less than what he started with. Reifler lost money and he isn’t alone in this growing dilemma.
“In 2005, student debt in this country was at 400 million. Today, it’s over a trillion dollars. Forty-four percent of people have less than six-thousand dollars in savings,” Reifler said.
This unfortunate realization would be followed by a second experience that shifted Reifler’s attention to the middle class. Reifler’s father-in-law started an RV repair shop 35 years ago. After he turned 80, he gave Reifler his life savings to invest. Most of the strategies Reifler’s father-in-law wanted to invest were not allowed because he was not an accredited investor. Reifler discovered how limited the investment options were for 99 percenters. Determined to change the junction America’s wealthy had on investments, Reifler began developing a public fund that people like his father-in-law could invest in.
“For several years I was only focusing on the accredited investor that makes $200,000 a year or has a net worth of more than a million dollars not counting their house,” Reifler said. “I’m now shifting everything to the non-accredited investor with a plan specifically designed for them. The 99 percent are overlooked. A majority of the investment world doesn’t consider them smart enough to invest in higher risk products. I think that’s wrong.”
What is an ‘accredited investor’?
According to the Securities and Exchange Commission (SEC), an accredited investor must be either a corporation or:
- a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person
- a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year
The accredited investor standards were originally designed to protect shareholders from risky investments. However, over the last 30 years, there has been an increase in knowledge and oversight in the stock market. On Oct. 9, The SEC Investor Advisory Committee recommended that the SEC carry out significant updates to the definition of an “accredited investor.” The Investor Advisory Committee, established in 2010 has been tasked to review the definition every four years mandated by the Dodd-Frank Act.
The committee’s recommendations were to do away with the current income and net-worth tests created in 32 years ago and replace them with measures based on financial sophistication. These measures would take into account an individual’s education, professional credentials, such chartered financial analyst designation or Series 7 license; and investment experience. Another recommended approach was to develop a financial-sophistication test.
After extensive due diligence and careful analysis, Reifler created Forefront Income Trust to give a viable investment opportunity to the middle class. The funds offer non-accredited investors a chance to invest at a minimum of $2,500 that can be added to or withdrawn every quarter. Assuming clients already have a 401K and savings, Forefront Income Trust products are not correlated to the stock market allowing room for higher risks and potential growth. These investment structures offer diversification and are designed to help mitigate risks.
Following the financial crisis of 2008, many non-accredited investors have hesitations when it comes to stocks and trusts. Reifler and his team have set goals to absolve those fears. “Our team is made up of many highly experienced investment professionals,” Reifler said. “Through the power of compounded returns, clients can potentially watch a small investment grow into a substantial retirement account.”
Not only does this nuance program give investors liquidity and return, they will provide individuals with understanding in a world of investment complexity. Reifler wants to empower his clients with knowledge so that they feel comfortable with their investments.
“Unlike Wall Street that makes money regardless if the client’s investments were successful or not, we don’t make any money until our clients make an 8 percent return,” Reifler said. “We want to be a firm for the people.”
About Forefront Capital Markets
Bradley Reifler is the Founder and CEO of Forefront Management Group, LLC and its subsidiaries Forefront Advisory, LLC, Forefront Capital Management, LLC, and Forefront Capital Markets, LLC. Founded in June 2009, Forefront Group is a boutique investment banking and wealth management firm that offers investment advisory services to individuals and institutions on both a discretionary and non-discretionary basis. The firm satisfies the income and long-term appreciation needs of global institutions, distributors, financial advisors and individual investors. Their ability to advise, create and execute is enabled through a coalition of business, portfolio management, banking, and distribution leaders.
Prior to Forefront Management Group, LLC, Reifler founded Pali Capital in 1995 and was the CEO until November 2008. During this period, Pali Capital grew into a company with revenues of over $200 million per year, more than 200 employees and offices in the United States, United Kingdom, Austria, Singapore and Latin America.
Reifler began his independent career in 1982 when he founded Reifler Trading Corporation, a firm engaged in the execution of global derivatives, which was sold to Refco, Inc. in 2000.
For more information about Bradley Reifler and Forefront visit: www.forefrontgroup.com.