Since the Forefront Group was founded in June 2009, Forefront Capital Management and its subsidiaries, focused their efforts on accredited investors. At that time, to be considered an accredited investor, clients must meet certain financial criteria established by the Securities and Exchange Commission (SEC). The SEC states that an accredited investor must be a corporation or one of the following:
1. A natural person who has an individual net worth, or joint net worth with their spouse, that exceeds $1 million at the time of the purchase, with the exception of the value of the primary residence of such person.
2. A natural person with income exceeding $200,000 in each of the 2 most recent years or joint income with a spouse exceeding $300,000 for the same years and expectancy of a similar income in the current year.
After 30 years the SEC realized there had been an exuberant amount of increased knowledge and stock market oversight. This led to updating the definition of an accredited investor. The Dodd-Frank act actually mandated that this happens every four years now. This recommendation from the SEC Investor Advisory Board led to the replacement of income and net worth tests and replaced that system with a newer one that takes into account financial sophistication such as an individual’s education, investment experience, and other criteria.
Brad Reifler, CEO of Forefront Capital Management, is switching gears after a couple of personal experiences opened his eyes to the 99 percent of possible investors that were not on the radar. After Reifler lost 40 percent of his 529 college fund he had set up for his children years prior, he realized this was an epidemic affecting many Americans. He also began to see that this problem led to a huge economic disaster which has added up to over $1 trillion dollars in student debt and almost half of Americans with less than $6,000 in savings. Reifler was also faced with trying to invest his 80 year old father-in-law’s life savings only to realize he was not considered an active investor. Thus, Forefront Income Trust was born. Reifler and his team began developing a fund that the 99 percent could invest in. This gave the non-accredited investors, or middle class, and opportunity to invest $2,500 that could be added to or withdrawn from every quarter.
Brad Reifer graduated from Bowdoin College as CrunchBase shows, with a degree in Economics and Political Science. He began his first company, Reifler Trading Corporation in 1982.
Reifer went on to found Pali Capital and under his leadership made over $200 million in profits. He had offices in the U.S., U.K., and Australia during his tenure. Reifler is now the CEO of Forefront Advisory where his 30 years of experience has given him a reputation of excellence.