Reply to If you have a networth of $1m plus do you consider yourself a "millionare"?

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Reply to "If you have a networth of $1m plus do you consider yourself a "millionare"?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]According the the Feds & Forbes a "Certified Millionaire" is a person who has a million dollar's in assets EXCLUDING their primary RESIDENCE[/quote]

I do not understand this exclusion at all. Does this mean that a person who owns their 99K condo outright has the same net worth as a person who owns their 999K house outright, assuming everything else is equal?  Makes no sense.[/quote]

The SEC has a term of art for "accredited investors" defined as people with $1M in assets excluding primary residence and $200k+ income ($300k+ for couples). There are a whole bunch of consumer protections that get waived for people who fall into this class because they are "sophisticated" investors. The idea is that if they have that much money to invest, they can afford greater risk and they have the experience to spot scams. The result is that shady folks in the financial industry prey on little old widows, alcoholic chiropractors, car dealers, and professional athletes because they have money but little financial sophistication.  Just remember, every penny that someone spends to sell investments to you comes directly out of your pocket whether it is a dinner at Ruth's Chris or a private plane ride to the All-Star game. [/quote]

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