Black men are rebounding when it comes to securing their financial future for retirement. Omari Hall, of GreenPath Wellness, right, shares tips for making end-of-career savings a reality.
What is financial security?
Black entrepreneur and author Dr. George C. Fraser, 76, defines it as having an adequate amount of assets to live a comfortable life for you and your loved ones plus leaving some assets to your children, as quoted in a Word in Black (WIB) article.
“Basically, assets have to be converted to cash. Whether it’s cryptocurrency, stocks, bonds, mutual funds, etc.,” Fraser said. “You save and invest first, and then you spend. That is a fundamental philosophy of building assets.”
Fraser told WIB that African Americans, especially men, can understand more about building and managing wealth.
“Every Black family should have a goal of owning land, buying gold and getting involved and invested in cryptocurrency,” Fraser said. “You should have life insurance. You should have a limited liability corporation — an LLC — because of the tax advantages. You should have an investment account. You should have stocks, a trust, an established will, and produce a product. If I have to write a list, what every Black family will have in the future, it would be those things.”
DeAnte Thompkins, 33, a financial advisor and senior market director at Thrivent, a Fortune 500 not-for-profit financial services organization, told the Michigan Chronicle that as a Black man in this industry he knows how important retirement savings is, too.
Thompkins, who runs the Michigan office in Plymouth, said that he sees clients around the state and locally being in the industry since 2017 helping individuals, families and businesses.
“The biggest thing I would tell (Black) men is to have a conversation so they can understand if they are on track or not for their goals,” Thompkins said adding that to maximize their financial blueprint it’s about prioritizing with finances.
According to https://www.cnbc.com, Black and Hispanic certified financial planners represent only four percent of all CFPs.
Thompkins said that not a lot of people look like him in his position and there can be a “trust factor” not always there when it comes to Black people and investments but it’s important to look beyond that – and for good reason.
From often having a lack of intergenerational wealth to even COVID-19 related setbacks, Black men and their families could gain better financial footing down the road.
Other factors also show that Black households have fewer than seven cents on the dollar compared to white households, according to data from the Survey of Income and Program Participation (2014). The white household living near the poverty line typically has about $18,000 in wealth, while Black households in similar economic situations typically have a median wealth near zero. Meaning that many Black families have a negative net worth and that doesn’t bode well for Black men looking to retire.
Native Detroiter Omari Hall, learning experience designer, GreenPath Financial Wellness told the Michigan Chronicle that while attending Detroit Public Schools for most of his early schooling (and later attending a private high school) it wasn’t until high school that he learned about words like “retirement,” “investments” and a “portfolio.”
“In short, this was certainly not a skill that I learned in any classroom setting, and hardly a topic of conversation with my parents as well,” he said adding that he did not have access to resources that might teach the importance of and provide support around navigating investments and retirement planning. “My first real point of reference for understanding financial planning was when I got my first ‘real’ job and noticed that I didn’t have a strong understanding of what my options were. Only at that point did I start doing some of my own research to better understand how to navigate that space.”
Thompkins, who is also in the financial literacy space, said that a lot of his work is “legacy driven” and he plans to do it as long as possible.
“When it comes down to the things … I have options set up,” he said adding that he wants to walk away from his job when he’s ready as opposed to having to work longer than he has to.
Black Enterprise reported that Americans typically plan to retire around 66, however, 40 percent of Americans had to halt their plans because of the pandemic. Also, about 2.7 million Americans (primarily rich and white) report they want to retire early due to having stock market successes.
Just 44 percent of Black Americans have retirement savings accounts, with an average balance of around $20,000, compared to 65% percent of white Americans, who have an average balance of $50,000, according to the Federal Reserve. Also, only 34 percent of African Americans own any stocks or mutual funds, compared to over half of white people, https://money.usnews.com/ reported.
Hall said that there is a need for easier access to clear and concise information around financial wellness.
“With a firmer understanding of your immediate, personal financial situation, I believe you will be better equipped to more confidently navigate the world of investments and retirement planning,” Hall said.
About Post Author
