Building a New Legacy: Black Women Investing to Create Generational Wealth
By Lydia Armelin, Market Director at J.P. Morgan Wealth Management
Two out of three Black women investors surveyed say building wealth to pass down to future generations was a motivation for why they started investing, according to J.P. Morgan’s recent Diverse Investor Study. At J.P. Morgan Wealth Management, we are committed to expanding investing resources to help more people build their wealth – and we recognize that financial education is a crucial first step in the journey.
Our team has been on the road for its ‘Building a New Legacy’ series of local education seminars for Black, Hispanic and Latina women with a focus around investing and creating a legacy through wealth and estate planning. We set out to create a safe space for these women and their allies to have open conversations about their stories, their finances and building sustainable wealth. Since kicking off the roadshow last year, the firm has hosted events in Atlanta, Chicago, Dallas, Detroit, Los Angeles, Miami, Newark, San Francisco and Washington D.C. with more than 1,000 attendees.
The team stopped by Houston earlier this month, where I took the stage with Bola Sokunbi, CEO of Clever Girl Finance, to discuss some tips for women in navigating their financial journey.
Lydia Armelin and Bola Sokunbi
Here are some key takeaways from the evening:
Remember your “why”
Investing is personal. It’s important to, first, take a step back and think about your goals. Ask yourself, what is my “why?” What exactly are you investing towards? In addition to generational wealth, our study found that 66% of Black women respondents are investing to support their family and friends. These goals, like supporting family and passing on wealth to your children, are important to keep in mind as you map out your long-term plan. Everyone’s financial situation is different. Your financial roadmap should be built around your unique goals and priorities. You should regularly check in on your plan as your priorities evolve over your lifetime, and adjust it as needed.
Our research also found that women are nearly two times as likely as men to care about investing in women-owned business (40% of women investors surveyed compared to 22% of male investors surveyed). And Black women are even more likely. 65% of Black women respondents say it’s important that their investments are women-owned, started, or directed. It’s great to see women supporting other women with their investments, and Black women leading the charge.
The importance of financial literacy
Deepening one’s financial knowledge is a crucial first step in the investing journey. Education is key. Here’s the good news – our research found that 68% of Black women respondents say they are more knowledgeable about investments and retirement planning compared to five years ago. This is really encouraging to see, but there is still more work to do.
At J.P. Morgan Wealth Management, we offer free educational articles on our content hub at chase.com/theknow, where you can find content on a wide range of personal finance topics, such as getting started investing, planning for retirement, saving for college and even breaking down basic investing terminology.
How investing can help build generational wealth
What exactly is “generational wealth” and how can you create it? Generational wealth is what you pass on to the generation after you. You can think about it like a baseball game. Do you want the next generation to start on first base, second, or third? Generational wealth can help your children or grandchildren start out ahead on a base that is closer to home.
Investing can be a powerful tool to help build generational wealth, and it’s so important to take a long-term view. Keep in mind that the amount of time you are invested in the market is one of the most important factors in growing your wealth. The sooner you can start, the better. Consider investing as much as you can, even if it’s a small amount, and work toward increasing that contribution amount over time.
We had a powerful discussion in Houston with a room full of women looking to build their own legacy. I hope we can all encourage more of these conversations in our own communities and empower one another to take charge of our financial future.
Lydia Armelin is a Market Director at J.P. Morgan Wealth Management based in Houston, Texas.
J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC.