Wednesday, February 20, 2008
Mellody Hobson Speaks on Retirement Crisis for Black Americans
I came across an interesting article written by Chicagoan,Mellody Hobson, President of Ariel Capital Mgt. and director of DreamWorks Animation SKG, Inc., The Estée Lauder Companies Inc. and Starbucks Corporation.
Mellody Hobson with boyfriend, George Lucas
Mellody posted an article on The Huffington Post titled "The Looming Retirement Crisis in the African-American Community." In her article she speaks of her company Ariel doing research on African-Americans trends in employee benefits, retirement and financial literacy.
Employee benefit providers and corporations unfortunately, found these bad habits among black employees that could negatively affect their long-term financial security:
- Blacks save less per month
- Less likely to diversify their portfolio
- Less likely to roll over when they change jobs
- More likely to borrow against their 401 (k)
Ms. Hobson argues that a lack of financial literacy among the African-American community will cause growing national crisis and financial burdens on retirees' children and society. She encourages a national effort to promote financial literacy, an increase of knowledge and exposure to investment information.
I do agree with her that Social Security, baby boomer retirement in addition to everyday economic hardships America needs to be addressed and resolved, sooner rather than later. I think everyone in the US no matter what their race is should pay very close attention to their financial portfolio and prepare carefully for their future.
I only touched on a couple points, but Mellody's an expert on this so click and paste this link: http://www.huffingtonpost.com/mellody-hobson/the-looming-retirement-cr_b_85390.html for the full story, it's an interesting read.