How to make good investments if you are a non-accredited investor

Even though accredited investors can qualify for better investments, not reaching the investor requirements doesn’t mean you can’t put your money to work. Read on to find out your best options.  

What is a non-accredited investor?

A non-accredited investor is any investor who does not have a net worth of at least $1,000,000, (excluding the value of one's primary residence) or an income of at least $200,000 each year for the last two years. Those are the income and net worth requirements set out by the Securities and Exchange Commission (SEC) to qualify as a credited investor. 

Although you won’t be able to invest in accredited investor-only investments, there are still many options you can choose from.

What are good investments for non-accredited investors?

Non-accredited investors must ask themselves the same questions accredited investor ask:

•    Does this investment help me meet my goals? 
•    Is this investment’s risk worth the potential return?
•    How volatile is the investment?
•    Can I sell this investment at any time or not?

These may be options to take into account:


Non-accredited investors can easily invest in stocks of publicly traded companies and there are several brokerages that you can use to do just that. By choosing individual companies, you can focus on finding the stocks that offer the highest potential return based on your research.

Mutual funds or ETFs

Mutual funds and ETFs are essentially baskets of several investments bundled together. This allows you to invest in multiple companies without investing thousands of dollars and it also allows you to diversify your holdings.

Real estate

You probably won’t qualify for all real estate crowdfunding companies, but there are some crowdfunding sites that welcome non-accredited investors. 

If not, you could invest in real estate buying multiple properties. You may turn them into rentals and earn good money. 

Start a business

You don’t have to be an accredited investor to start your own business. If you have a profitable idea and are willing to take the risk, you could end up having a successful company.


Starting a company could make you rich, but it could also leave you broke if it ends up failing.

Investing in a single stock could make you a millionaire or the company could go bankrupt.

A more conservative person might invest in a mutual fund that is well-diversified and earn a smaller return each year but with a lower risk.

If you’re not sure what to do with your money, you can consider consulting with a financial advisor to get advice for your specific situation.

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