Thursday, March 13, 2008

You may be an accredited investor and not know it

You may be worth over $1 million outside of the value of your home and not really know it.
If so, then you are an accredited investor. There is no registration you need to do or form to fill out in order to be an accredited investor. Read the first posting to this blog for more info on what defines an accredited investor.

Consider all assets in your control.
When considering if you are accredited, you need to look at all of you and your spouse's assets. Click on the title of this blog for a link to wikipedia's definition of an asset. Make a list of all your assets with three columns to the right. In column one, put your best estimate of the asset's market value today. In the next column, put the amount of debt, if any, that you currently owe on that asset. In the last column, subtract the debt from the asset value to determine the net value of the asset.

When making your list of assets, don't overlook things that may not seem obvious. List the balances in all of the accounts in you and your spouse's control including IRA, 401k, pension, savings, CD, checking , stock or other broker, and other accounts. Also list all fine jewelry, furniture, collectibles, or other items of value. Think what you could get or every item you own of value. A trick for estimating the value of these items is to look for the same or similar item that has sold on eBay. Another way is to get valuables appraised by a professional. If you have a home or other business, talk with a business broker to see if they can estimate the value of your company. Find out what someone would pay to buy your successful business given you have a list of loyal clients and positive income from the business. Open your mind to think about everything you own as an asset that counts, other than the value of your home, toward being an accredited investor.

Add the value of these assets and you may be suprised.
Total the net values across all these assets. You may be surprised to find they total more than a million dollars. If so, welcome to a whole new world of investments for your consideration.

Don’t get greedy and start investing in every new opportunity presented.
Be sure to conduct good due diligence on each opportunity. Learn about many different opportunities before making a decision with the advice of professionals on what best fits your goals and needs. Take it slow as you learn and build on your successes while learning from your mistakes. I can just about guarantee you will make plenty of mistakes too. Just pick up and keep moving ahead. Don’t give up.

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Copyright 2008 Ole Cram. Ole Cram is President of Marcobe Investments, Inc., a corporation that invests in various oil and gas ventures and refers accredited investors, investment managers, financial advisors, investment funds, and others to the associated oil producer of these projects for their consideration to also participate. Feel free to email us at with any questions, thoughts, or requests for information on what projects we are invested in.

This article was posted at Accredited Investor Blog: Past articles can easily be found at This article is provided for educational purposes only and is not meant to be a substitute for tax, legal, financial, or other registered professional advice for your specific situation. Always seek the advice of a professional before making any related decision. Sphere: Related Content

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