The Securities and Exchange Commission defines an “Accredited Investor” as an individual who meets the following criteria:

• $ 200,000 of individual income in each of the past two years.
• $ 300,000 of joint income in each of the past two years.
• Anticipation of similar or higher earnings in the future.
• $ 1,000,000 of financial assets (not including your home)

So, what does this mean for you?

For a select group, it means that they can invest in privately held companies in the start-up mode. While more than 90% of these investments never work out profitably, every now and then you hit a home run–that is the adrenaline rush.

Being an “accredited investor” opens up a gamut of investment avenues. If you are, here is what should and must be available to you. Your decision to venture into these depends on risk assessment, liquidity, time horizons, and individual needs. A candid, transparent discussion with your financial advisor is crucial. 

Here are many investment opportunities we have available to our High-Net-Worth Clients. I urge you to make an appointment, either in person or via Zoom, to discuss these further.

Private Equity and Hedge Products  

Our clients gain exclusive entry to top-tier programs typically out of reach for an average investor. Private credit returns often eclipse bond returns, often with reduced volatility.

Access to Private Real Estate Products 

Even though this is a sector that has some short-term volatility in front of it, clients like the attractive yields and hedge against inflation.

Direct Indexing for Concentrated Stock Positions 

An ideal strategy for those with substantial wealth in a single stock, either due to job or inheritance. It enables portfolio diversification into the S&P 500 while optimizing capital gains taxes.

Access to Specialized CPAs and Attorneys 

You may need specialized tax advice or legal advice and we are here for you. We connect you to industry-leading CPAs and attorneys for niche tax or legal advice. Just ask–we have a bank of experts at your fingertips.

Specialized Tax Strategies 

It is possible that you have a major gain or loss that needs to be offset. Harvesting losses or gains can definitely be your friend here.

Exit Planning from your Company 

Transitioning from your enterprise, be it through sale or Retirement, requires meticulous planning. Our experts guide you through the nuances, ensuring optimal tax spread over the years and smooth ownership transitions. These are conversations worth having.

Trust Planning 

Using trusts to take advantage of the tax code and protect your beneficiaries can be so important. Not to mention solid family planning and meeting your needs, possibly for the life of your dependents. While we don’t write trusts, we do have in-depth knowledge of their usage.

Wealth Transfer Planning and Legacy Planning 

What can be more important than how we transfer and plan for our assets to go to the next generation?  We devise strategies for seamless asset transition to subsequent generations, encompassing gifting, generation-skipping, and health planning.

Philanthropic Planning Strategies

For those who are charitably inclined, we develop strategies that will keep your assets doing great things for years to come. This can be part of your overall tax strategy as well. Your Legacy may be defined by how you touched others and the causes that matter most to you.

Family Financial Education

Sometimes your adult children need to understand your goals, strategies, and the “why” behind your actions. We are here to help in any way possible and support you in educating your family about your financial vision and the rationale behind your choices.

With a rich legacy of experience spanning over three decades, your Team at Prosperity Financial Group is here to help you meet your financial goals, now and in retirement. Make an appointment today and let us get more in-depth.

Feel free to reach me at 925-314-8503 or elliot@prosperityfinancialgroup.com

All my best,

Elliot Kallen, President

The post Taking Advantage of Being an “Accredited Investor” appeared first on Prosperity Financial Group | San Ramon, CA.

Elliot Kallen Wealth Manager | Registered Principal

For more than three decades, Elliot has provided customized wealth management solutions for entrepreneurs, business owners, retirees, and millennials.

Elliot and his wife, Tammy, are passionate about giving back to the community through their 501(c)(3) foundation, A Brighter Day. Through his partnership with A Brighter Day Charity, the Kallen family has helped local teens and young adults recognize and access resources to cope with the risks of stress and depression.

He enjoys spending his free time with his family. Some of his hobbies include cooking, wine, golf, travel, and studying history.

He lives in Lafayette, California with his wife, step-daughter, and grandson.