Brad Reifler is hoping to make investing easier for the middle class. The serial entrepreneur announce in late December of 2014 a plan that would make investments once available only to the very wealthy, available to a lot more people.
For years he was focused only on “accredited” investors as his portfolio history shows, meaning those people who made $200,000 per year or had a net worth of $1 million. Now he wants to shift that to the 99 percent, or everyone else. He made the announcement when his company, Forefront Capital, released a new investment program called Forefront Income Trust.
The rules were put in place more than 30 years go to protect investors from risky money moves. Over the last few decades, Reifler said there has been an increase in oversight, and an increase in knowledge among the public, so the Security Exchange Commission is relaxing the rules. The requirements will be replaced with a measure of how sophisticated the investor is. The person’s education, credentials, licensing and experience, will be the key factors instead.
Reifler’s new investment vehicle will require a $2,500 minimum investment, and the money will be available to investors quarterly. This assumes people already have a 401k. This will allow people to invest with more freedom, and allow them to take more risks which could generate higher growth, his press release explained.
“We have interesting nuance programs that can give clients liquidity which is what they want and a preferred 8 percent return,” Reifler said. “We don’t make any money until they’ve earned that 8 percent, which is pretty unique on Wall Street.”
Reifler attended Bowdoin College, on the coast of Maine, and got his degree in finance and political science. Shortly after graduating he started his own company, Reifler Trading Corporation, where he worked with global derivatives. He sold his company to Refco Inc., in 2000. He started Pali Capital in 1995 and was CEO until 2008. Pali grew into a multi national company with more than $200 million in annual revenues. He was founder of Forefront Capital Markets in 2009, and is still CEO of Forefront Management Group.