Just When You Thought You Had Arrived...

The definiition of "rich" can be very personal. It is often based on something that seemed out of reach growing up, or on comparisons with others. Most people have some sort of number they hold internally that indicates to themselves whether they are well off or not.

Since governement plays such a large role in our lives, it seems appropriate that the American SEC has just changed their definition of "accreditied investor", which is a euphimisim for someone who can afford to lose large sums of money, and who presumably is smart enough to make his own investment decisions.

The Wall Street Journal reported it thusly:

"Now, the government has weighed in. As part of its effort to better regulate hedge funds, the SEC has proposed a new definition for “accredited investor” — someone rich enough to invest in private investment pools without needing protection from government regulators. To invest in hedge funds today, investors need to have $1 million in net worth (including the value of their primary residence), or income of at least $200,000 for individuals or $300,000 for households. The SEC has proposed raising the bar, requiring investors to have $2.5 million in investible assets.

So many people are now worth $1 million (especially if you include the value of homes) that being a millionaire may no longer buy a ticket to that rarified world called “rich.”"