Does Title III (Reg CF) Crowdfunding Discriminate Against Retired People?

“Now anyone can invest in startups”… but there have turned out to be more limitations than hoped for, some with greater consequences.

Now, the investment limits are catching the crowd’s attention.

Retired people don’t have the same investment opportunities as the rest of the crowd.

The final SEC rules are as follows:

"After considering the comments receied, we have decided to adopt a "lesser of" approach. Thus, under the final rules, an investor will be limited to investing: (1) the greater of: $2,000 or 5 percent of the lesser of the investor's annual income or net worth if either annual income or net worth is less than $100,000; or (2) 10 percent of the lesser of the investor's annual income or net worth, not to exceed an amount sold of $100,000, if both annual income and net worth are $100,000 or more."

This means that an investor sitting on $20,000,000, that wishes to help kick-start some local-businesses, can only invest $2,000, while somebody making $50,000 a year with $50,000 in the bank can invest a greater amount of money in return for stock.

The SEC declined to comment, but continues to allow anybody to lose all of their money on lottery tickets, retired people included.