NEW YORK, NY--(Marketwired - Dec 10, 2014) - Forefront Capital has announced its most recent initiative, Forefront Income Trust. Unlike other investment programs, Forefront Income Trust caters to non-accredited investors.
"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," Brad Reifler, Founder and CEO of Forefront Capital explained. "I'm now shifting everything to the non-accredited investor with a plan specifically designed for the 99 percent who are overlooked."
According to the Securities and Exchange Commission (SEC), an accredited invester must be either a corporation or:
1. 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
2. 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 analyze, 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 The funds offer non-accredited investors a chance to invest at a minimum of $2,500 that can be added to or withdrawn every quarter.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.
The gap between the wealthy and middle class widens as economic inequality continues in America. Traditionally dominated by 1 percenters, Forefront Income Trust opens investment opportunities to the middle class.
"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."
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 was 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.
Following the financial crisis of 2008, many non-accredited investors have hesitations when it comes to stocks and trusts. Most of today's irrational investment fears stems from lack of education in the financial industry. As a financial expert, Reifler feels it is a responsibility to enlighten the potential investors and bridge trust between them and investment managers. Reifler and his team have set initiatives to absolve those fears. This includes financial literacy and transparency.
"I would like to be known as a safe place where people can find investment alternatives," he said. "I'd like to bring this entire investment complexity to everybody so that they can save for their futures."
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.
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.