Juneteenth: Knowing True Wealth is the Key to Salvation

The US will celebrate the first anniversary of Juneteenth, its latest annual federal holiday since it was signed into law by President Biden. More than two years after President Lincoln’s Emancipation Proclamation, the holiday commemorating the emancipation of the last Confederate slaves in Texas on June 19, 1865, provides a collective opportunity to reflect on the contributions and triumphs of black Americans who have contributed to our nation. Woven in. history.

To me, liberation is synonymous with what I define as “true wealth.” Wealth is often defined on purely monetary terms, but there is more. As a financial advisor, I have made it my mission to work with individuals and families seeking to build long-lasting, multi-generational wealth, giving them the freedom to shape the legacy they want. So to receive.

There is no greater time than the present to act on that mission. Many statistics on the difference between black household wealth compared to others are well known. These differences drive the bigger opportunities I see. I am honored to bring resources and networks to the individuals and families I serve.

Entrepreneurship as a Path to Equity

Certainly, there are many aspects to the history of institutional racism and prejudices that have been a significant driver of this wealth gap. Plus, American history is replete with meaningful stories of wealth creation driven by entrepreneurship. Before the pandemic, the average American Adult [[add OK??], With an average value of $147,000, 15.3 percent of his wealth was in business equities.

In the Federal Reserve’s 2019 Consumer Finance Survey, households with the highest net worth were more likely to own businesses. Still, a study by consulting firm McKinsey showed that black Americans are not equally able to reap the benefits of ownership – only 5 percent hold business equity compared to 15 percent of their white counterparts. That entrepreneurial spirit should survive beyond the idea stage and continue through the business owner’s journey.

Importantly, entrepreneurship is not just for young people looking for the next start-up opportunity. Many of our business-owner clients only started their businesses after working for others for many years. It takes a lot of time and energy to build a good business. Financial and social capital, as well as strategic relationships with people with resources, are other key elements that help business owners grow. Having learned and networked their business, they often saw an opportunity to meet a market need and then took the proverbial leap of faith in business ownership. Today, there are many resources available to help budding black entrepreneurs and their businesses.

emancipation and ownership

In addition to owning a business, wealth can come from owning public shares. Shareholders can help drive positive change in businesses and the society in which they operate. According to the 2019 Census Bureau, white households are almost twice as likely to own a stock (61 percent) than black households (34 percent). Net worth is highly correlated to public stock ownership. This approach to wealth creation is long-term, and the barriers to entry are low. The black community should begin to recognize this value and shift its focus to savings and equity ownership rather than consumerism.

There may be an opportunity in your own community. You can make an impact with your investment dollars. In a recently released Invest to Advance report from UBS, black investors surveyed said supporting their community benefited them more than investors overall. More than six in 10 (65 percent) agreed that spending their dollars with black entrepreneurs was important. And nearly 6 in 10 (59 percent) believed it was important to donate to advanced black communities. Likewise, you can put your investment dollars to work to advance a greater level of equitable, social, and lasting impact for the black community and beyond.

Juneteenth represents an awareness of the freedom that all Americans enjoy. Wealth provides the power of choice, strong networks, and the ability to uplift communities. To reach there, people have to raise their voice. Be the owner Owning your own businesses and public companies can help drive positive change. May this holiday remind everyone of the journey it took to get here, and the tremendous opportunities that lie ahead. Happy Juneteen!