If you pay much attention to the financial world or the entertainment world then the film ‘Money Monster’ has likely crossed your desk. In the movie ‘Money Monster’ an unhappy investor by the name of Kyle Budwell crashes the set of an investment tip show called ‘Money Monster’ which is hosted by Lee Gates, played by George Clooney. Budwell, as it turns out, lost everything he owned on a bad tip by Gates and now he is demanding some answers — live on air, with a bomb strapped to his chest. While the movie is dramatic and fictional it recounts a realistic tale of the small time investor. This is something that Forefront Capital CEO Brad Reifler finds interesting enough to tackle on his own.
Reifler has long been a proponent of small time investors and he decided to take some time to outline some of the major issues that theses small investors are facing in their lives. Before we dip into Reifler’s tips we need to understand the different levels of investors. There are two kinds of investors: accredited and non accredited. Accredited investors are worth at least $1 million excluding their real estate. Non accredit investors are everybody else. The accredited investors have quite an advantage over their comparably poor counterparts. The three main problems that Reifler points out are as follows.
First off, Reifler points out that fees are a gigantic issue on Wall Street. The larger firms charge borderline unbearable management fees no matter how well their clients are actually doing. This makes it so that brokers are always cashing in even if their clients are failing as a result.
Second, investors of the non accredited variety are routinely stifled when it comes to accessing better investments. The SEC considers non accredited investors to be somehow less capable than their wealthier counterparts, limiting their ability to invest in efficient areas.
Finally, the stock market is inherently risky and the only option most non accredit investors have. This means that the climb up the ladder of investment is tied intrinsically to the hardest investment area to conquer — not very fair. There’s more about Brad at his official website.