Having a financial advisor is an important step. Educating yourself about the stock market and retirement plans is also critical. But your work is not quite done with either of these things.
“One of the best ways for Black women to actively build wealth is to start understanding all of the ways that you can build wealth,” says Broadway, echoing a sentiment all three women emphasized.
Williams dives a little deeper on the subject, explaining that there are multiple pillars to wealth and they include entrepreneurship, real estate, investing, and insurance.
“Building wealth is not about picking one thing that will significantly augment your situation,” Williams explains. “It’s about being diversified.”
It’s important to incorporate each of the pillars into your overall financial strategy (or as many as possible), to manage risk and make sure you’re not heavily allocated in just one of these areas.
Real estate, says Williams, is a significant wealth accumulation tool. “Whether you’re purchasing a home for primary use or as an investment, appreciation and gains are almost inevitable if held long-term,” she says.
As for investments and insurance, they work dynamically together to satisfy a well-balanced financial picture, says Williams. Investments work offensively to help you accumulate for goals, such as retirement, and insurance can help you plan for the what-ifs in life.
“Black women should fund both insurance and investments at suitable amounts as determined by a financial professional,” she advises. “Most financial advisors are licensed in both insurance and investment and will not only be able to make a recommendation, but also help implement the strategies.”