From: G. William Turner
Please reconsider your proposal to raise the minimum net worth requirement needed to invest in private funds from $1,000,000 total net worth to $2.5 million liquid net worth. Why would you try to exclude so many people from participating in this type of investment? Due to inflation and the growth in assets, including homes, today about 8.5% of U.S. households are eligible. This new proposal would reduce the number of investors eligible by about 88% or just 1.29% of American households.
Why should 99% of Americans, simply because the have less than $2.5 million of investment net worth be precluded from the same choices available to the 1% who are really rich? Why does the government assume those with less than $2.5 million to be sophisticated enough to understand the risks in stocks (which have lost trillions of investor dollars) stock options, futures, mutual funds (80% of which under perform the market), yet deem them to be incapable of understanding the risks of real estate private placements that build single family houses, condominiums and townhomes, operate a strip center or an apartment project or develop a medium size office building?
If you were to tell investors that they will be discriminated against because of their gender or race or sexual preference, there would be an outcry. Isn't discrimination based on wealth the same? It is a matter of choice, of equal access. It is a matter of Equal Opportunity. Congress should change the rules and allow all investors to be truly equal, at least as to opportunity.
GO. William Turner