This month’s Black History celebration is almost over. I must ask the question, what is the status of Black Wealth in America?
Before I attempt to answer the question, I want to acknowledge the pride I feel that we celebrate a month of Black History. We all can benefit from learning new things about the contributions, success and sacrifices of Black American people who have helped shape this nation. I am proud of my heritage as a Black American. We are strong, intelligent and a resilient people who have overcome so many obstacles. I am proud to be a Black Female American who has successfully survived in the financial services industry dedicated mostly to white males. I have been a Wealth Manager for over 35 years. To say it has been difficult is an understatement. I was told from the start of my career I would fail because I am Black, I am a woman, and at the time I was a divorced mother of one. I took the challenge and paid no attention to the opinion of this person. I am still here and have carved out a successful career despite my many obstacles.
What is the status of Black Wealth in America?
A big challenge in the Financial Services industry is a lack of diversity. Black people represent 13.4% of the United States population yet less than 5% of Financial Advisors are Black and even fewer percentages are Black female. What does this matter you may ask? This can lead to such negative financial outcomes for Black individuals and families. If members of the Black community never get introduced to a Financial professional, financial education becomes limited and the accumulation of wealth may seem daunting or unreachable. The face of the profession must change to support the needs of diverse multicultural communities. Many Black Financial Advisors want to close the wealth gap. Most of us want to help not only POC but all people. I know I do.
According to the new data from the 2019 Survey of Consumer Finances (SCF) it shows that long-standing and substantial wealth disparities between families in different racial and ethnic groups were little changed since the last survey in 2016; the typical White family has eight times the wealth of the typical Black family and five times the wealth of the typical Hispanic family. In the 2019 survey, White families have the highest level of both median and mean family wealth: $188,200 and $983,400, respectively. America's Black women hold more than 90% less wealth than American White men, according to Goldman Sachs in a new report. The study found Black women currently make 15% less than White women and 35% less than White men. In the '80s, the earnings gap was 5% between Black and White women.
According to the Economic State of Black America in 2020, if these trends persist, White median household wealth will increase while Black and Hispanic household wealth continues to fall. At the current pace of decline, median household wealth could reach zero by 2053 for Black households and by 2073 for Hispanic households.
What can you do about the status of your wealth?
You can change your wealth no matter the obstacle. You have overcome many obstacles before. Find a Financial Advisor who can help you pursue the growth of your wealth through various wealth growing options and preserve your wealth through insurance protection so you can leave a legacy or generational wealth to your next generation. According to the data from the 2019 Survey of Consumer Finances (SCF) one reason wealth-holding is high among White families is they are more likely to have received an inheritance or gift. Another reason is White families report other indicators associated with higher levels of family support. For example, 30 percent of White family’s report having received an inheritance or gift, compared to about 10 percent of Black families, 7 percent of Hispanic families, and 18 percent of other families. Conditional upon receiving an inheritance or gift, White families also tend to receive larger inheritances. By planning properly for your life and financial goals, accumulating through systematic investing, growing wealth through various wealth opportunities, and preserving your wealth through insurance protection, you can leave a legacy to your next generation as well.
Financial Planning and Wealth Management opportunities are for everyone not just for the rich. Establishing a Financial Plan serves as a guide as you go through the winding road of your financial life. It can help you be in more control of your money, expenses, investments and how you want to live now and the future. I celebrate the growth and many successes of our people, but we still have so much further to go. I have witnessed how devastating life can be for individuals and families who are not empowered with financial education, financial preparation, adequate resources, and having an abundance of credit card and student loan debt. Visit a Black Financial Advisor who can help educate you along your financial journey. They can help you Plan for your future personally and for your small business. If you are unable to locate a Black Financial Advisor in your area, visit the Association of African American Financial Advisors https://www.aaafainc.com
Let a Financial Advisor who puts your best interest first help educate you to accumulate money through your employer plans and other investment opportunities. Eliminate the excuses on why you have not accumulated wealth thus far. Stop looking back. Tomorrow is another day.