Brad Reifler has been a steadfast presence in the financial investment world thanks to his work with Pali Capital and then Forefront Capital. Most recently we have seen Reifler shift his focus from accredited investors onto the 99% of investors that don’t meet the rigorous standards of the SEC — the rest of us. Reifler has become a friend to small time investors and now he is taking some serious time away from work to help prep these same investors. He started by analyzing the new financial focused movie, “Money Monster” before releasing some hot tips for investors.
“Money Monster” follows George Clooney, an on air cable Wall Street guru, as he is taken hostage by a man who has lost it all in terms of investments. The man is convinced that he was cheated by the system and now he is digging for answers. Though the film is fictional and obviously racked up with Hollywood drama the scenario of the young man who lost it all is based on reality. Far too many small time investors are risking everything in a market that they really don’t understand. Reifler took this scenario to heart and dropped these tips for investors looking to make a move into the market. He highlighted three major concerns that all investors should be aware of.
The first concern that Reifler pointed out is the issue of market fees. Fees are rampant on Wall Street with the majority of firms charging monstrous fees regardless of the performance of their client. This means that the firm is getting paid no matter how well their client fares. This, in Reifler’s honest opinion, is not how things should be working. When the firm is profiting regardless of their client’s outcome it creates an imbalance.
Next Reifler points out how limited non-accredited investors are when it comes to actually finding ways to work with their money. Accredited investors, those earning over $200,000 per year or worth more than $1 million, have many doors open to them that other investors will never be aware of. Accredited investors are unfairly thought of as “more intelligent by the U.S. government” and thus allowed to work with more beneficial investments.
Finally Reifler pointed out the inherent volatility of working with the stock market. The stock market is the most likely place for non accredited investors to throw their money down and it is also the most risky. Reifler is working with Forefront Income Trust to help these same investors find safe ways to turn their savings into long term, larger accounts.