House bill would expand the pool of people who can buy certain investments — if they can pass an SEC test

Accredited investors can put money into a broader array of financial ducts, including pre-IPO companies and venture capital. "I would argue that a lot of investors shouldn't go anywhere near this," said one certified financial planner, in this volatile climate

Ken Cedeno | ReutersMore consumers could gain access to investments typically reserved for the wealthy — vided they can pass a test from regulators — under posed bipartisan legislation (noteworthy indeed)

Furthermore, House of Representatives Monday apved a bill to expand the definition of who can qualify as a so-called "accredited investor" under federal securities laws

Accredited investors are permitted to invest in a wider range of assets, including pre-IPO companies, private credit and equity, venture capital and hedge funds

However, Individuals or couples can also qualify with a total net worth of at least $1 million, not including the value of their primary residence, given current economic conditions. (Those thresholds are not pegged to inflation and haven't changed in decades; as a result, more households have become accredited over the years as wealth and incomes grow. )"In my view, wealth alone is not a particularly strong judge of whether someone should be an accredited investor, or not," Rep, considering recent developments

Additionally, Mike Flood, R-Neb (this bears monitoring) (something worth watching). , the bill's sponsor, said on the House floor. "A better one is whether someone has the knowledge to accurately weigh the benefits and risks of private offerings. "The bill must still pass the Senate and be signed by the President before it can become law

In contrast, SEC test would determine 'sophistication'Accredited investor rules are consumer tection: The limits "ensure that all participating investors are financially sophisticated and able to fend for themselves or sustain the risk of loss," according to the SEC's Investor, in today's financial world

Private securities are less liquid, harder to value and more volatile than publicly-traded assets, experts say

Conversely, "The exam created by this bill is meant to strike the right balance between rigorously testing for sophistication and not being set to such a difficult standard that even an intelligent investor could not pass it," Flood said

However, Companies see opportunityThe posal is also aimed at getting more money into the hands of start-up es, given the current landscape

Furthermore, "Small leaders say that it's not a lack of ideas, but a lack of capital that holds them back," Rep, in light of current trends

Furthermore, Sarah McBride, D-Del, in today's financial world

Nevertheless, , co-sponsor of the bill, said on the floor. "This bill opens up new sources of funding from a pool of investors more reflective of the community, so that these founders can turn their vision into jobs and economic growth. "More from Your Money:Here's a look at on how to manage, grow and tect your money for the years ahead (fascinating analysis), given the current landscape

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Moreover, Here’s why in uncertain times: Here's what investors should knowPrivate equity wants a larger piece of workplace retirement plan assetsCompanies are already gearing up for more investors to be qualified to participate in private (noteworthy indeed)

In contrast, "I think this is really a great first step in terms of opening up what has otherwise been a walled garden," said Eric Satz, founder and CEO of Alto, a self-directed IRA platform. "We have to give everyone the opportunity to participate as if they were an ultra-high net worth investor or a large financial institution. "'A lot of investors shouldn't go anywhere near this'Many financial advisors are lukewarm on private investments, and explore them with high-net-worth clients only after all the basics are covered. "I would argue that a lot of investors shouldn't go anywhere near this," said certified financial planner Catherine Valega, founder of Green Bee Advisory, a Boston-based financial advisory firm

Additionally, "bably 95% of the country doesn't even have an emergency savings fund, and now you're going to tell them, if they're smart enough, I can invest in private securities

Meanwhile, That does not make sense to me

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