While Black women are looking at education and homeownership as paths toward building multigenerational wealth, findings from a national survey suggest they’re facing considerable setbacks.
The latest research from Goldman Sachs' One Million Black Women – which gathered insights from 1,200 respondents – found 57 percent of Black women plan to leave some form of inheritance, including real estate (68 percent), life insurance (68 percent) and cash (39 percent).
But 28 percent of Black women are grappling with student loan debts exceeding $50,000, in stark contrast to just 11 percent of all U.S. adults. More broadly, that gap extends to the 47 percent of survey respondents who said they’re saddled with student debt, compared to just 26 percent of all adults.
A significant majority of Black women reported a high level of educational attainment, with 84 percent completing at least some college education. Despite that, half of the respondents (50 percent) reported annual household incomes below $75,000.
“Black women are making commendable strides in education and are exploring various avenues to build wealth,” the report said. “However, systemic barriers continue to hinder their financial progress.”
Homeownership, often considered a cornerstone of American wealth-building, remains elusive for many Black women.
The survey found that only 49 percent own homes, compared to 65 percent of the general U.S. population. The hurdles to homeownership are notably high, with 63 percent of Black women citing insufficient income as a significant barrier, followed by the cost of a down payment (59 percent) and high interest rates (47 percent).
The financial challenges extend beyond debt and homeownership. A substantial chunk of Black women – nearly 43 percent – reported spending more than 30 percent of their monthly income on housing, significantly hampering their ability to save for retirement.
Alarmingly, only 49 percent have retirement savings, compared to 61 percent of U.S. adults. Among Black women with nest eggs, 48 percent said they’ve saved less than $50,000 for retirement, compared to 27 percent of the broader adult population.
“These survey results are not just numbers,” Asahi Pompey, global head of corporate engagement at Goldman Sachs, said in a statement. “They are stories of Black women who are college students, working mothers and retirees who are striving to leave a legacy.”
Also, Orion has added BlackRock, Fidelity, and Vanguard to its custom portfolios suite, and RedBlack has set up a new headquarters after crossing a trillion-dollar milestone.
Also, New York-based Legacy Edge Advisors names its first-ever CEO, while Novare Capital Management hires a Vanguard veteran with a multigenerational planning focus.
Asset managers are racing to bring private market products to retirement plans, but cost and liquidity concerns linger.
Treasury's latest tax-exemption crackdown on private schools lands in the wake of a separate push to restrict refundable credits for some immigrant filers.
Workforce trust measures predicted which companies came out ahead during COVID-19. The same dynamic may now be playing out across the AI transition — and the data suggests the spread could be just as wide.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income