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Despite Dreams of Prosperity, Many African Americans not Financially Ready to Retire

NNPA NEWSWIRE — “Caucasians didn’t lose as much wealth during the Great Recession and have recovered more of it, so white households now hold close to six times the wealth of African American or Hispanic households,” according to a recent MassMutual State of the American Family Study.

Published

5 years ago

May 17, 2019

Oakland Post

By Stacy M. Brown, NNPA Newswire Correspondent
@StacyBrownMedia

The nation’s leading public interest group providing seniors and others with information that empowers them to choose how they live, AARP, regularly publishes a retirement calculator that individuals and families can use to provide a personalized snapshot of what their financial future might look like.

One simply has to answer a few questions about household status, salary and retirement savings (such as an IRA or 401(k)), include information about supplemental retirement income (such as a pension or Social Security), and consider how long they intend to work to generate information that will inform their expected lifestyle as a retiree.

The tool is designed to help potential retirees determine the amount of money they’ll need to retire “when – and how – they want.”

Unfortunately for most African Americans, even the most sophisticated planning tools lead to the same result: retirement has fast become a pie-in-the-sky dream.

“As a whole, Americans are bad savers. But, I believe it’s worse for African American communities because they don’t have access to the right educational opportunities,” said Cory Chapman, the Managing Partner and CEO of EFC Wealth Management.

“Being raised by a single mom with three kids, I understand the struggle of just trying to pay the bills and get food on the table. Growing up, saving money was an afterthought and never discussed,” Chapman said.

A report published earlier this month demonstrated how African Americans, Latinos and other minorities will have a more difficult time calling it quits than white Americans.

The report, published on the financial website The Motley Fool, revealed that the troubling disparity in retirement readiness between white Americans and minorities can be explained largely by income and wealth disparities that persist throughout our lives.

“Caucasians didn’t lose as much wealth during the Great Recession and have recovered more of it, so white households now hold close to six times the wealth of African American or Hispanic households,” the report’s authors said.

Median earnings for white households recovered from the recession by 2016, but earning levels for both black and Hispanic households remained below 2007 levels.

Caucasians now earn close to twice as much as minority households do, according to The Motley Fool.

“The African American community is skeptical when it comes to saving,” Chapman said.

“Growing up, we were taught by our grandparents that we couldn’t trust banks and we were better off burying money in the backyard,” he said.

Understanding how money works is actually getting worse with each new generation – black children aren’t learning basic life skills in school, Chapman continued.

“We need to be teaching children about planning strategies to generate wealth. Retired African American clients that come into my office are still just trying to make ends meet,” Chapman said.

“They don’t feel like they can save money when they are trying to put their kids through college and help them buy a home or car. They are forgetting about themselves and their own retirement,” he said.

The most recent MassMutual State of the American Family Study found that there are differences in retirement planning among different cultural groups.

African Americans fall short on executing life-changing measures such as accumulating wealth, being better prepared for retirement and building up savings.

According to the American Family Study, 84 percent of African Americans believe the American Dream means financial security; 78 percent in not living paycheck-to-paycheck; and 77 percent in owning a home.

However, based on the study, many African Americans don’t have tangible assets needed to make those goals happen now.

The study revealed a disconnect between African Americans’ financial situations and their hope toward the future.

Some key findings from the survey:

Outside of retirement accounts, only 37 percent of African Americans own wealth-building products such as stocks and mutual funds.
Only 35 percent believe they are doing a good job of preparing for retirement.
33 percent have less than one month of funds saved for a crisis and less than 25 percent have amassed more than six months’ of emergency savings.
58 percent are actively involved in educating their children on finances versus 48 percent of Caucasians. Forty-percent rely on family members for information

“The study shows African Americans want to improve their financial situations and are hopeful about the future,” Evan Taylor, African American market director for MassMutual, told Black Enterprise Magazine.

“At the same time, it sheds light on the financial struggles and inequities that the African American community continues to battle,” Taylor said.

“Those contradictions indicate a need for greater financial education and discipline for the whole family to achieve economic success. In fact, the biggest financial regret expressed by respondents was that they wished they had started saving and investing sooner,” he said.

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IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78

NNPA NEWSWIRE — Born on September 4, 1945, in Los Angeles, California, activist Ramona Edelin’s early years were marked by a commitment to education and social justice. According to her HistoryMakers biography, after graduating from Fisk University with a Bachelor’s degree in 1967, she pursued further studies at the University of East Anglia in England. She earned her master’s degree before completing her Ph.D. at Boston University in 1981.
The post IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78 first appeared on BlackPressUSA.

Published

4 weeks ago

April 3, 2024

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

Once upon a time, Black Americans were simply known as colored people, or Negroes. That is until Ramona Edelin came along. The activist, renowned for her pivotal roles in advancing civil rights, education reform, and community empowerment, died at her D.C. residence last month at the age of 78. Her death, finally confirmed this week by Barnaby Towns, a communications strategist who collaborated with Dr. Edelin, was attributed to cancer.

Born on September 4, 1945, in Los Angeles, California, Edelin’s early years were marked by a commitment to education and social justice. According to her HistoryMakers biography, after graduating from Fisk University with a Bachelor’s degree in 1967, she pursued further studies at the University of East Anglia in England. She earned her master’s degree before completing her Ph.D. at Boston University in 1981.

Edelin’s contributions to academia and activism were manifold. She was pivotal in popularizing the term “African American” alongside Rev. Jesse L. Jackson in the late 1980s.

Jackson had announced the preference for “African American,” speaking for summit organizers that included Dr. Edelin. “Just as we were called Colored, but were not that, and then Negro, but not that, to be called Black is just as baseless,” he said, adding that “African American” “has cultural integrity” and “puts us in our proper historical context.”

Later, Edelin told Ebony magazine, “Calling ourselves African Americans is the first step in the cultural offensive,” while linking the name change to a “cultural renaissance” in which Black Americans reconnected with their history and heritage.

“Who are we if we don’t acknowledge our motherland?” she asked later. “When a child in a ghetto calls himself African American, immediately he’s international. You’ve taken him from the ghetto and put him on the globe.”

The HistoryMakers bio noted that Edelin’s academic pursuits led her to found and chair the Department of African American Studies at Northeastern University, where she established herself as a leading voice.

Transitioning from academia to advocacy, Edelin joined the National Urban Coalition in 1977, eventually ascending to president and CEO. During her tenure, she spearheaded initiatives such as the “Say Yes to a Youngster’s Future” program, which provided crucial support in math, science, and technology to youth and teachers of color in urban areas. Her biography noted that Edelin’s efforts extended nationwide through partnerships with organizations like the National Science Foundation and the United States Department of Education.

President Bill Clinton recognized Edelin’s expertise by appointing her to the Presidential Board on Historically Black Colleges and Universities in 1998. She also co-founded and served as treasurer of the Black Leadership Forum, solidifying her standing as a respected leader in African American communities.

Beyond her professional achievements, Edelin dedicated herself to numerous boards and committees, including chairing the District of Columbia Educational Goals 2000 Panel and contributing to the Federal Advisory Committee for the Black Community Crusade for Children.

Throughout her life, Edelin received widespread recognition for her contributions. Ebony magazine honored her as one of the 100 Most Influential Black Americans, and she received prestigious awards such as the Southern Christian Leadership Award for Progressive Leadership and the IBM Community Executive Program Award.

The post IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78 first appeared on BlackPressUSA.

Stacy M. Brown

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Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues

NNPA NEWSWIRE — Recent legislative actions in Tennessee, such as repealing police reform measures enacted after the killing of Tyre Nichols, underscore a troubling trend of undermining local control and perpetuating racist agendas. The new law preventing local governments from restricting police officers’ authority disregards community efforts to address systemic issues of police violence and racial profiling.
The post Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues first appeared on BlackPressUSA.

Published

4 weeks ago

April 3, 2024

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

Tennessee State University (TSU), the state’s only public historically Black college and university (HBCU), faces a tumultuous future as Gov. Bill Lee dissolved its board, a move supported by racist conservatives and MAGA Republicans in the Tennessee General Assembly, who follow the lead of the twice-impeached, four-times indicted, alleged sexual predator former President Donald Trump. Educators and others have denounced the move as an attack on diversity, equity, and inclusion (DE&I) and a grave setback for higher education.

Critics argue that TSU’s purported financial mismanagement is a manufactured crisis rooted in decades of underinvestment by the state government. They’ve noted that it continues a trend by conservatives and the racist MAGA movement to eliminate opportunities for Blacks in education, corporate America, and the public sector.

Gevin Reynolds, a former speechwriter for Vice President Kamala Harris, emphasizes in an op-ed that TSU’s financial difficulties are not the result of university leadership because a recent audit found no evidence of fraud or malfeasance.

Reynolds noted that the disbanding of TSU’s board is not an isolated incident but part of a broader assault on DE&I initiatives nationwide. Ten states, including Tennessee, have enacted laws banning DE&I policies on college campuses, while governors appointing MAGA loyalists to university trustee positions further undermine efforts to promote inclusivity and equality.

Moreover, recent legislative actions in Tennessee, such as repealing police reform measures enacted after the killing of Tyre Nichols, underscore a troubling trend of undermining local control and perpetuating racist agendas. The new law preventing local governments from restricting police officers’ authority disregards community efforts to address systemic issues of police violence and racial profiling.

The actions echo historical efforts to suppress Black progress, reminiscent of the violent backlash against gains made during the Reconstruction era. President Joe Biden warned during an appearance in New York last month that Trump desires to bring the nation back to the 18th and 19th centuries – in other words, to see, among other things, African Americans back in the chains of slavery, women subservient to men without any say over their bodies, and all voting rights restricted to white men.

The parallels are stark, with white supremacist ideologies used to justify attacks on Black institutions and disenfranchise marginalized communities, Reynolds argued.

In response to these challenges, advocates stress the urgency of collective action to defend democracy and combat systemic racism. Understanding that attacks on institutions like TSU are symptomatic of broader threats to democratic norms, they call for increased civic engagement and voting at all levels of government.

The actions of people dedicated to upholding the principles of inclusivity, equity, and justice for all will determine the outcome of the ongoing fight for democracy, Reynolds noted. “We are in a war for our democracy, one whose outcome will be determined by every line on every ballot at every precinct,” he stated.

The post Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues first appeared on BlackPressUSA.

Stacy M. Brown

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Braxton Haulcy and the Expansion of Walker|West Music Academy

May 24, 2023 – Walker West Music Academy gets an early start on expansion. Join us for a Wednesday episode of The …
The post Braxton Haulcy and the Expansion of Walker|West Music Academy first appeared on BlackPressUSA.