Middle class people who have been left out of investment opportunities created for wealthy elites now have a new opportunity. For a minimum investment of $2,500, the Forefront Income Trust offered by Forefront Capital presents a viable vehicle for diversifying investments and potentially gaining higher returns. The founder and CEO of Forefront Capital, Brad Reifler, chose to develop this fund because he believes that members of the 99 percent deserve more options for building retirement savings.
Reifler gained this outlook after his father-in-law asked him to invest his life savings. He discovered that most of the investments that he wanted to make for him were only for accredited investors. An accredited investor earns such a designation by having at least $1 million in assets outside of a home or earning a minimum of $200,000 a year.
Because 44 percent of middle class people have under $6,000 in savings, they are excluded from many investment opportunities. To correct this situation, Reifler designed the Forefront Income Trust as a public fund that would spread out risks among many investors and increase their chances of earning higher returns.
Reifler pointed out on Twitter that his firm only makes money if his clients achieve at least an 8 percent return. This arrangement naturally aligns his interests with those of his clients. He said this differs from many Wall Street brokers who make their money whether people earn or lose money.
Opportunities could continue to expand for people who are not currently classified as accredited investors. The Investor Advisory Committee has recommend that the Securities and Exchange Commission update its income and net worth requirements that were developed 32 years ago.