(FinalCall.com)--People love to talk about Black wealth. "We are
worth $500 billion," they cry. Great. But how much of that is invested?
The Black community is not invisible, but its investment earnings are
barely discernible. Maybe in the past, you thought that the stock market
wasn�t open to you. As a child I don�t recall hearing much about the Dow
Jones industrial average. Our family dinner table discussions were not
about stocks and we certainly weren�t entertaining calls from
stockbrokers.
Blacks make up only two percent of those selling stocks, bonds,
mutual funds and other securities, according to the Equal Employment
Opportunity Commission, so if you haven�t been approached by a
securities professional, I�m not shocked. In fact, when a Wall Street
Journal reporter interviewed me he was surprised to learn that half
of my $133 million portfolio of clients belonged to Black investors,
many who had never invested before.
That�s disturbing. Surveys show that most Black Americans place their
money into low-return savings and money market accounts instead of the
high-return investments that create great wealth. In the middle of one
of the longest buying runs in stock market history, too many of us have
been on the sidelines because we either invest in low return money
market accounts or we didn�t participate at all. Because we tend to
invest more conservatively, we end up with less retirement savings. And
once again, those who are investing are pulling farther and farther
ahead, leaving those who are not far behind.
Your financial knowledge will pay dividends. Blacks of all ages are
less likely than Whites to describe themselves as "knowledgeable"
investors. Thirty-eight percent of Blacks say it�s their lack of
knowledge that prevents them from investing. And sure, you can argue
that by ignoring the Black market the investors have lost out. But we
lose out more.
Well, know today that the market is open to you and you should take
advantage of it. Don�t let lingering racial insecurities or fear of
discrimination keep you from claiming your prosperity birthright and
participating in the American economy. History shows that our sweat, our
hearts, our brains are heavily invested in the development of this
country. Now it�s time we invested money in the economy we helped create
and cash in on our success.
A well-conceived investment plan is a form of life assurance. It
takes a little money to get started, but it takes even more of an
investment in the truth. Accept for the first time in your life that
saving money is vital to your future happiness and security. Commit to
making your money work for you.
(Jesse B. Brown is a Chicago-based financial advisor and author.
Email: [email protected] or www. Investinthedream.com)
