WE CAN FINALLY SOLVE THE RACIAL EDUCATION, HEALTH AND WEALTH GAPS IN AMERICA WITH FINANCIAL LITERACY
The first step in African Americans proactively closing the above gaps is strengthening our financial knowledge or literacy and investing in securities such as stocks, real estate, ETF’s etc.
The stock market hit a low point on March 23, 2020. Since then, the S&P 500 increased ~34% and majority of African Americans missed out on that 34% return.

INVESTING VERSUS SPENDING
During a COVID-19 pandemic, did you order more or less from Amazon.com? For weeks I seemed to receive an Amazon package daily! {I blamed my wife!} But these constant deliveries to my house and my neighbors sent a clear signal, that Amazon’s revenue/earnings were increasing. Increased earnings drive stock prices up. I already owned Amazon stock along with millions of other people around the world. Almost any adult (over the age of 18) in the U. S. can own any stock, including Amazon by directly purchasing the stock, or through funds in your 401K, IRA, ETF’s and Brokerage accounts. In 2020, many NEW and young investors saw the same trend I did and purchased Amazon stock. Amazon stock has appreciated ~69 percent YTD 2020. Majority of African Americans missed out on that 69% return.

The wealth gaps between Black and White households started before we were born. Each financial crisis including COVID-19, widened the gap as the poor, black and brown households took the brunt of the economic recession.
As U.S. Covid 19 flu symptoms surged, blacks and browns died at a greater percentage. Due to the decades long gap in health and wealth between the races.


ROOT CAUSES FOR EDUCATION, HEALTH AND WEALTH GAPS
- Redlining, GI Bill Home Loans Discrimination, etc., stopped many black families from becoming homeowners. This discrimination resulted in hundreds of thousands of dollars legacy wealth, lost to current generations of African Americans.

- COVID-19 demonstrated what we knew, majority of blue collar and hourly workers cannot work from home. With the exception of essential workers, these were the first to lose their jobs.
- Majority of the working poor, in fact majority of Americans, had zero emergency funds.
- Over 20 million Americans lack health insurance and have no means to pay for catastrophic illnesses, such as Covid-19.
THE NEED FOR EMERGENCY SAVINGS – MORE IMPORTANT TODAY THAN EVER!
SOLUTIONS

About 33% of Black households owned stocks in 2019, compared to 61% of White households. While the 401-K allows millions of U. S. workers to own stocks, Black and Hispanic workers are less likely to work for employers that offer a 401K. One reason for not having access to employers offering 401K plans is the education gap. Larger companies offer the 401K plans and tend to hire employees with post-secondary education.
This failure to contribute to a 401K over the past decade equates to missing ~260% returns from S&P 500 ETFs. If an employee making $65,000 annually, worked for a firm offering a 401K that matched four percent and the employee put in her four percent each month, that employee would have accumulated greater than $80,000 after ten years.
THE LACK OF FINANCIAL LITERCAY CREATES MISTRUST IN HIGHER RISK INVESTMENTS

Many African American learned to mistrust whites for good reasons decades ago and they have not forgotten. Black investors prefer safer places to put their money such as banks. Today, unfortunately ALL safer investment options pay low returns and fail to keep up with an average inflation of two percent. The safest investment in the world is the US Treasury Bond. The ten-year bond is paying about 0.76 percent. If you invested $5,000.00 in that treasury bill you will gain about $38 after 12 months.
Growing up my parents did not own stocks or mutual funds, and we did not talk about investing in the stock market at the dinner table. I grew up in a typical middle-class black household. Even today with the ease of sharing information via the internet, too few black and brown kids are learning financial literacy: Stock investing, the power of compounding, the 401-K plan, IRA, ROTHs, etc.
Without increasing the financial literacy of blacks and browns the wealth gaps will NOT close.
FINANCIAL LITERACY IS A MUST

For millions of Americans now is NOT the time to invest in the stock market when you are trying to survive the serious damage to the US and global economy from this pandemic. However, now is the time to build your financial literacy so you can in the near future successfully invest and close your own wealth gap. Investing in the stock market is not reserved for the wealthy, or those with fancy degrees and titles.
WANT TO TEST YOUR FINANCIAL LITERACY?
FINANCIAL LITERACY IS JUST NOT THAT COMPLICATED – TRUST ME!
CONCLUSION

Sitting back and waiting for any political party to bail you out and close the Education, Health and Wealth gap is as futile as resisting the Borg on Startrack the Next Generation! HOPE IS NEVER A STRATEGY! We can either accept responsibility and accountability or keep waiting.

REGARDLESS OF RACE, COMMON SENSE STEPS TO ACHIEVE FINANCIAL FREEDOM AND EQUALITY IN EDUCATION, HEALTH AND WEALTH!
- STOP using the N Word!
- Respect where you live!
- At a MINIMUM Finish High School!
- High-school Dropout earns ~$19,000.00/year
- High School Graduate ~$38,000.00/year
- Bachelor College Degree: ~$65,000.00/year
- Doctorate Degree ~$100,000.00/year
- STOP FATHERING BABIES YOU CANNOT OR WILLNOT TAKE CARE OF!

- GET A JOB!
- SPEND LESS THAN YOU EARN!

- SAVE!
- INVEST FOR THE LONG TERM!
- ACHIEVE FINANCIAL FREEDOM!
PREVIOUS APPLICABLE BLOGS
KEEP IT SIMPLE STUPID {KISS} – THE S&P 500 ETF INDEX
WITHOUT ANY DOUBT – THE BEST GET RICH PLAN IN TWO EASY STEPS!
IT’S TIME TO INVEST IN EQUITY – S& P 500 ETF INDEX
INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?

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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger, with a NC State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I had a desire for making a difference as a speaker and writer, to help others. I was blessed to be coached and mentored by strong women and men in both my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (small but brilliantly created plant nursery). I am a successful investor in stocks, options, real estate and happy to share my personal finance and investment lessons learned with you.
However, I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog, as recommendations for your personal situation. For individual finance advice please seek your own licensed CPA or fiduciary financialadvisors.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.
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