Everything you Need to Know About Investor Accreditation

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What is investor accreditation?

Investor accreditation is a designation that allows investors to have access to more sophisticated investments than traditional brokerage accounts. It can be a great route to become a more tenured investor and have access to various investment vehicles that were not possible before. 

Some examples of investments that require investor accreditation include private equity, unlisted REITs, and angel investments.

How do you become accredited?

  • You need to meet at least one of the following criteria: 
  • Accreditation typically just requires a self-affirmation that the individual meets one or more of the listed requirements but investment groups or other firms may require additional  information via tax returns, CPA confirmation or pay stubs. 

 

Why does investor accreditation matter?

  • As you move along on your investment journey, you may want to consider investments that require this investor status in the name of diversification, passions, values, or risk/return profile
  • Investing in some of these more unique areas can also lead to a more lasting legacy to pass on to future generations noting that angel investing, as an example, typically sees much higher risk (and potential return) profiles

 

What are the steps?

  • Learn about accreditation and if you would benefit from it
  • Calculate income and make a plan to boost it above the threshold in the coming years and /or
  • Think about investing beyond primary residence as one avenue to boosting net worthInvest in real estate to add to the net worth criteria

 

Closing thoughts

The path to becoming an accredited investor can be intimidating, but the first step is to educate yourself and understand the potential benefits of this path. Working with a financial advisor or planner to help you clarify your goals and create a roadmap to achieve them can be invaluable. The more women who are informed about this opportunity to access unique and lucrative investments, the more we can collectively shift the power dynamics in the investing world for generations to come.

She’s Independent has pathways to accreditation for every level of investor, led by Jessica Meunier and Natalie Levy. Join us to learn more and get accredited today! 

 

About the Author

Jessica Meunier is a financial advocate, money mindset coach, published author, speaker and angel investor. She is disrupting the financial planning industry by focusing on financial wellness and leading in price transparency. She has 15 years of experience in financial planning and analysis, is a former CPA and an accredited investor. 

Jessica loves to see women increase their confidence in financial decisions and build wealth in ways they never thought possible! Jessica lives in the Bay Area with her husband and two daughters. She loves to be outside, get active and bake whenever possible. Learn more about her work here and start your financial wellness journey today!

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