The Securities and Exchange Commission (SEC) defines an accredited investor as someone who meets one of following three requirements:
- Income: Has an annual income of at least $200,000, or $300,000 if combined with a spouse’s income. This level of income should be sustained from year to year.
- Net Worth: Has a net worth of $1 million or more, either individually or together with a spouse, but excluding the value of a primary residence.
- Professional: Is a “knowledgeable employee” of certain investment funds or holds a valid Series 7, 65 or 82 license.