NEW YORK, Oct. 11 /PRNewswire-FirstCall/ — Ariel Mutual Funds and The Charles Schwab Corporation released today their 10th annual Black Investor Survey at the first-ever Ariel-Schwab Black Investor Summit. The two financial services companies convened the summit in New York City at NASDAQ in response to the survey’s findings, which show that African-Americans save far less money than Whites and are no more likely to be investors today than they were a decade ago. Panels featuring government, business, and community leaders covered such topics as financial literacy, the role of employers in promoting saving and investing, and the need for individuals to take greater responsibility for securing their retirement.
“The truth is that many Americans are not saving enough to ensure a comfortable retirement,” said Schwab Founder, Chief Executive Officer and Chairman Charles R. Schwab. “The problem is broad-based; but the 10th anniversary of this research and today’s summit serve as important reminders that the need to better prepare for their financial futures is even more pressing among this underserved segment of our population.”
Now check out this next blurb:
According to this year’s just-released Ariel-Schwab Black Investor Survey of 500 Blacks and 500 Whites earning more than $50,000 annually, the median amount of money saved by Blacks surveyed is less than half of their White counterparts ($48,000 versus $100,000). On a monthly basis, median savings is $182 for Blacks versus $261 for Whites.
Question: What financial responsibilities do Black folks have in this earning bracket that Whites do not?
The article continues…
The survey was first conducted by the two companies in 1998, when 57% of Blacks and 81% of Whites said they owned individual stocks or stock mutual funds. A decade later, still just 57% of Blacks are stock investors, compared to 76% of Whites. During the past ten years, the number of Blacks who own stocks or mutual funds rose as high as 74% (in 2002) only to fall again, while White participation has consistently hovered within a few percentage points of 80%.
“The data is troubling because it suggests that barriers to investing are just as formidable as they were a decade ago. Our industry and our community must address this challenge aggressively,” said Ariel President Mellody Hobson, adding, “Government and employers also play a crucial role.” (more…)
So again, based on the data presented in this press release, how can one conclude that there are systematic barriers hindering Black folks within the same earning bracket from saving?
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