Nationwide — Highly motivated by a recent article published by ABC News entitled “Stocks are Soaring, and Most Black People Are Missing Out”, Ernest Gains and Latoya Smith, expert investors and the founders of a Black-owned stock market and trading education company called The Profit Room, have decided to publish the following tips on why you should start investing.
1. Free market
The stock market doesn’t care what color you are. All it knows is money. Your broker doesn’t Google your address or ask about your family, it’s a free market
2. Information age
As Blacks, we used to be left out of a lot of information because of our history. Our ancestors were shielded from financial products but now there are apps we can utilize to get the information we need. There’s no reason for us to be afraid of being turned down at a bank or financial firm. We can do everything online.
3. We can narrow the wealth gap
For many years we have missed out on investing in the stock market and that has widened the wealth gap of Blacks versus Whites. In the past, we had a lot of discriminatory practices that prevented us from creating generational wealth. Times have changed so we need to catch up!
4. Better jobs
We have better jobs now, many of which may offer retirement and financial services, giving us another advantage of being able to invest in the stock market. Contributing to a stock market investment plan throughout your career can set you up for success.
Many in our community are drawn towards real estate investing and business ownership. Investing income in the stock market can be a financial vehicle where we can generate another 20-30% more return.
6. Children & legacy
If children see and watch how we get involved in investing now, they will make better financial decisions in the future and work to build generational wealth.
7. The cost
Today there are institutions that have products and services that allow you to start investing with $10 at a time and build your way up. A few years ago you needed a certain amount of capital that maybe we didn’t have or were afraid to invest.
8. Value of stocks vs Money sitting in the bank
Historically overtime money losses value. this is called inflation. every year the price of goods and services go up. costing you more money eroding the value of the dollar. historically over time the stock market has beat inflation
9. Tax purposes
The government has several products that allow your investments and retirement accounts to legally grow tax-free.
Our people love ownership. Taking advantage of the companies you love or products you use to buy becoming a stock owner is beneficial in the long run. Even though you may not be a major percentage owner, you still are an owner, and buying stock in that company should make you feel proud.