Speak Out!
A Troubling Racial Split
Mon, 11/12/2007 - 18:07 | Wealth
A Washington Post article addresses the issue of the differences in how people of color are preparing for retirement:
Employers have begun to find troubling racial differences within their 401(k) plans, a gap they say could leave black workers far less financially prepared for retirement than whites. "There are clear differences between blacks and whites: How we think about money, where we save and invest our money, what we do with our money, and how we're influenced as to what we do with our money," said Mellody Hobson, president of Ariel Mutual Funds.What has to happen to get more Black workers to participate in company retirement plans?
THE COVENANT In Action
Comments
Blacks will have to see
Blacks will have to see themselves as valued in their companies.We already know 'last hired first fired' has not changed over the years so why put my money into something or some company when(1) Can't see longevity (2)I have to give my money to someone who doesn't treat me as an equal (3)I don't know where my money is going or what it is being used to support (4) if I ever need my money you mean I'll get taxed in it??
Now many blacks can and will feel justified(myself especially) that I didn't get with a retirement fund, with hearing and seeing the devastation that this last bubble bursting did. Then to learn how the money invested in these 401(k)s were being used by corporations wall street and banks to gamble with is even more of a justification for our thoughts.
But we do need a method of saving that we can depend on.I say that all Americans of African descent should agree to start a community chest and begin looking out for our own future.We will establish a website for members and all members have an equal say how where and on what the money should be used. Every member will be able to see what the balance is continuously and no one will be able to remove any money from the account without the majority vote(to be determined) of members. The more that is put in the more we will be able to do for our communities.
Because we don't see what our money will be used we are leery of funds. They are made to complicated and we always have to worry about NOW. But they say be patient and let it grow for this amount of time and it will be worth it. All the while they're going home to their $200,000 plus homes and we're wondering what's goin' to happen to us.
We can build wealth in our communities and in building that wealth will have the things needed for our old age and for our children and their children. It's going to take unity, willingness and taking a step toward trust, but we can do it.
Increase wages. Most Blacks
Increase wages. Most Blacks are living from paycheck to paycheck, any change in their income whether it is to save for the future or pay an outrageous light bill. This makes it complicated to even think about saving for the future. Most Blacks are hanging by a thread between poverty and homeless. How can you think about the future when you are trying to make it right now?
have to be informed, a
have to be informed, a company need to value their hired help with dignity & integrity. more Jail time for those that steal others retirement plans as in the past because time was less then what you might get for petty or grand larceny.
I am a retirement planner and
I am a retirement planner and there is definitely a racial split, but also a gender issue. My black female clients have barely, if at all, any money invested in their 401(k)plans as opposed to my black male clients. Are you Fit To Be Prosperous? www.fittobeprosperous.com
Hire more of them.
Hire more of them.
Make signing up to a 401k
Make signing up to a 401k plan mandatory!
We must be educated about
We must be educated about investments. It can be done through church, school, television adds, etc. There are many vehicles
that can be used to educate the black community about the need to invest.