Accredited Investors
Under the SEC's Regulation D (Rule 501), an accredited investor is an individual or entity that meets certain financial, professional, or institutional criteria and is permitted to participate in certain private securities offerings that are not registered with the SEC.
Individuals may qualify as accredited investors based on factors including income, net worth, or certain professional credentials. For example, an individual may qualify if they have earned income exceeding $200,000 in each of the two most recent years (or $300,000 jointly with a spouse or spousal equivalent), with a reasonable expectation of reaching the same income level in the current year, or if they have a net worth exceeding $1 million, individually or jointly with a spouse or spousal equivalent, excluding the value of their primary residence.
Meeting the accredited investor definition does not, by itself, indicate that any investment is appropriate or suitable for a particular investor.
Accredited investors may have access to certain investment opportunities and strategies that are not available to all investors, including certain private offerings and alternative investments. These strategies may offer different risk and return characteristics than traditional investments and should be evaluated in light of an investor's objectives, financial circumstances, risk tolerance, liquidity needs, and overall investment plan.
Private Ridge Wealth Management works with accredited investors to evaluate investment opportunities and planning strategies that may not be available to all investors. Recommendations are tailored to each client's financial situation, investment objectives, risk tolerance, and liquidity needs.
Leveraged Growth
Certain option-based and other investment strategies may be available to accredited investors and may be used to seek investment objectives beyond those available through traditional long-only portfolio allocations. These strategies can involve the use of leverage and may increase both potential gains and potential losses.
For accredited investors, Private Ridge Wealth Management may evaluate a variety of growth-oriented investment strategies, including certain option-based approaches, as part of a client's overall investment plan. The appropriateness of any strategy depends on the client's financial circumstances, investment objectives, risk tolerance, liquidity needs, and other relevant factors.
Option-based strategies involve additional risks and are not suitable for all investors. There is no guarantee that any investment strategy will be successful or achieve its intended objectives.
Due to the complexity of these strategies, Private Ridge Wealth Management encourages interested investors to speak with our investment team to discuss their individual circumstances and determine whether such strategies may be appropriate for their situation.
Downside Protection
Investing, even with the most sophisticated strategies, incurs risk. Minimizing the risk and limiting downside exposure is critical, especially for accredited investors.
For Accredited Investors, Private Ridge Wealth Management can employ several risk mitigation strategies that can potentially limit downside risk during difficult market periods, thus helping to mitigate risk for the overall portfolio.
By understanding the potential risks, rewards, and limitations of a strategy, investors can make more informed decisions regarding their overall investment plan.
Due to the complexity of these strategies, Private Ridge Wealth Management encourages interested investors to speak with our investment team to discuss their individual circumstances and determine whether such strategies may be appropriate for their situation.
Complex Income Strategies
Private Ridge Wealth Management may evaluate the use of certain option-based strategies as a complement to a client's existing investment portfolio. Depending on market conditions and the specific strategy employed, these approaches may be used with the objective of generating additional portfolio income.
For accredited investors, Private Ridge Wealth Management may consider a variety of income-oriented investment strategies as part of a client's overall investment plan. The appropriateness of any strategy depends on the client's financial circumstances, investment objectives, risk tolerance, liquidity needs, and other relevant factors.
Option-based and income-oriented strategies involve risks and may limit participation in certain market gains. There is no guarantee that any strategy will generate income or achieve its intended objective.
Due to the complexity of these strategies, Private Ridge Wealth Management encourages interested investors to speak with our investment team to discuss their individual circumstances and determine whether such strategies may be appropriate for their situation.
Concentrated Positions
Concentrated positions (consisting of 20% or more of a portfolio) can create some intricate challenges for investors. When those positions are highly appreciated with imbedded capital gains, liquidating these positions can be damaging from a tax standpoint.
However, being exposed to potential depreciation of the position can ultimately be more detrimental.
For eligible accredited investors with concentrated stock positions, Private Ridge Wealth Management may evaluate a variety of portfolio management and risk-management techniques designed to address the unique considerations associated with holding a significant position in a single security. The appropriateness of any strategy will depend on an investor's objectives, tax considerations, risk tolerance, liquidity needs, and overall financial circumstances.
Due to the complexity of these strategies, Private Ridge Wealth Management encourages interested investors to speak with our investment team to discuss their individual circumstances and determine whether such strategies may be appropriate for their situation.