You No Longer Have to Be A Millionaire to Be An Accredited Investor

SEC qualifies anyone holding a Series 7, 65, or 82 license able to invest

Cassandra Rivera


Photo by Ben White on Unsplash

If anyone has ever read Robert Kiyosaki’s, “Rich Dad’s Guide to Investing” you may remember when Rich Dad tells Kiyosaki that some investments are illegal for the poor and middle class to invest in.

Rich dad explains that certain rules were set in place by the Securities and Exchange Commission (SEC) in order to “protect” the lower classes from riskier investment options. This also has prevented many from investing in some of the most “profitable” investments too.

Accredited investors can invest in the lucrative world of, private placements, hedge funds, private equity, venture capital, and equity crowdfunding. Private or unregistered securities are considered inherently riskier and hence, the rules were enacted.

The SEC developed qualifications and rules under the Securities Act of 1933. Here are the rules for individuals broken down by Wikipedia.

In the United States, to be considered an accredited investor, one must have a net worth of at least $1,000,000, excluding the value of one’s primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year.

On August 26, 2020, the SEC amended its qualifications, and here is the breakdown from the US Securities and Exchange Commission press release:

According to the SEC, the amendments to the accredited investor definition in Rule 501(a):

  • add a new category to the definition that permits natural persons to qualify as accredited investors based on certain professional certifications, designations, or credentials, including the Series 7, Series 65, and Series 82 licenses as qualifying natural persons. (The Commission will reevaluate or add certifications, designations, or credentials in the future);
  • include as accredited investors, with respect to investments in a private fund, natural persons who are “knowledgeable employees” of the fund;
  • clarify that limited liability companies with $5 million in…



Cassandra Rivera

Crypto | NFTs | Stocks | Web3 | Investment Advisor, NFA