More than any other group, black women are the caretakers for elderly family members. Sometimes this can be a financial burden, and in many cases, it may be a financial disaster. When they become caretakers, their work hours and subsequently income significantly decrease. In order to provide the basic living essentials for their family, they dig into their savings accounts, retirement accounts and max out credit cards. Sometimes the person they are caring for may have income, but it is limited. This has been a long revolving cycle in the African-American community. It’s a financial issue that has not been properly addressed, which goes back to my earlier comment about the need for financial planners to do a better job of reaching out to all communities and offering solutions for issues such as this.
There are many disparities that contribute to the wealth gap. Some of these disparities are based on social ills and others are self-inflicted. Whether voluntary or involuntary, black women have the greatest challenges. It is going to take dedication and an unwavering commitment to get on the right financial path. That commitment needs to come from both sides -- black women and financial professionals. As financial professionals, we must look for opportunities that put us in places where black women work and socialize. Such places may include:
• Local churches
• HBCU and sorority events
• Women’s empowerment and networking workshops
• Annual Essence Festival
• Black Enterprise Women of Power Summit
• African American Chamber of Commerce
• Urban League
Financial planners may also need to be committed to structuring fees in a way that attracts African-American women. Based on personal experience, a monthly retainer for a specific amount withdrawn at the same time every month has been the most successful fee structure. A monthly retainer between $250 to $400 seems to be the most palatable. My experience has also shown African-American women want guidance on budgeting, retirement planning, risk management and estate planning.
Building good rapport, offering practical solutions and making fees feasible can help attract more African-American women. This will help improve the wealth gap and unleash the potential to generate economic growth.
Reshell Smith, CFP, is founder of AMES Financial Solutions in Ocoee, Fla. She can be reached at [email protected].