Since the financial crisis of 2008, the increasing income gap between the highest earning households in the United States and the rest of country, known as the 99 percent, has been growing in public conversation lately. Many are concerned because this disparity has huge consequences for the country’s economic future. It has been suggested that this income or rather wealth gap is because of investment opportunities available only to high-earning households. Forefront Capital and its founding CEO Brad Reifler seek to change that.
For much of his career and as Wikipedia shows, Reifler’s expertise was geared toward accredited investors. These are households with an annual income in excess of $200,000 a year and/or a net worth greater than one million. The standards and options available to these households are more flexible and very different from what most middle-class Americans have access to. This flexibility has allowed accredited investors to have much higher rate of return on their investments. These rates are significantly higher than those achieved by traditional investment structures like pensions or a 401k.
For Brad Reifler, the awareness of this difference was not just a professional observation as the CEO of the Forefront Capital. It was a personal one. He spoke of being approached by his father in law who wanted him to invest the life savings he accumulated over 35 years as a small business owner. Reifler quickly realized that the approach used for previous clients could not be used for his father in law because he didn’t fit the requirements of an accredited investor. This led him to create the Forefront Income Trust. Among the features of this fund is the minimum of $2500 to become a client. Such a low minimum makes access of this fund to middle-class Americans a real option.
Several features separate the Forefront Investment Trust from traditional investments available to the middle-class is structure. Unlike an IRA or 401k, the Forefront Investment Trust is not interdependent on the stock market. This allows for a more diverse, robust strategy that increases the potential of greater returns. Another attractive feature of Forefront Investment Trust is the stated position of the company founder and CEO, Brad Reifler. He has made it clear that the company does not make money until the client makes an eight percent return. “We want to be a firm for the people,” says Reifler.
With over 30 years of experience, Brad Reifler certainly has the resume to back his position. In 1982, he founded his own trading company after graduating from Bowdoin College. So successful was this venture that it was brought by and even larger company Refco. From there he went on to found Pali Capital where he served as Chairman and CEO for 13 years. On social media, Brad Reifler has gained respect for his pushing financial education among the middle class. He received lots of press attention for an article in Reuters titled “Brad Reifler’s Five Tips for Investing“