Percentage of blacks in retirement plans trails that of whites

[AlphaCentauri]

Source: Clarion Ledger

This year the annual Black Investor Survey conducted by Ariel Investments and Charles Schwab didn't get much attention. When the market is at historic lows, it's hard to get publicity for wagging your finger at African-Americans for not investing in their employee retirement plans.
It was a challenge to get blacks to invest before the market went crazy and it's probably harder now with just about everybody and their mama - black and white - seeing substantial losses.
Over the last 11 years, black stock ownership has fluctuated from a low of 57 percent last year to a high of 74 percent in 2002, according to the survey.

...
Although African-Americans are enrolled in employer-sponsored defined-contribution plans at about the same rate as whites, they save far less each month and have a considerably smaller portfolio balance. The median monthly amount that blacks contribute to their 401(k) plan is $169, while whites contribute about 50 percent more, or $249 each month. As a result, the median total household savings for retirement reported by black respondents is $53,000, compared with $114,000 for whites.

..
In the EBRI report, Hispanic wage and salary workers were significantly less likely than both white and black workers to participate in a retirement plan. Like the Ariel and Schwab report, EBRI found the gap between the percentages of black and white plan participants narrows when compared across earnings levels.



Read more: http://www.clarionledger.com/article/20081030/BIZ/810300345/1005/biz

[Name removed]

1. Deleted message

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[enid602]

2. 401K´s/IRA´s

I think participation in a voluntary retirement savings plan probably has more to do with income (and how long you´ve been middle class) than race. I think everyone should be educated about these plans, and encouraged to participate. Mandatory participation might also be wise. That said, they are risky, and should not replace social security or fixed benefit plans.

[Critters2]

3. And this just in--sun to rise in east tomorrow morning. Details at 11. nt

[pitohui]

4. no shite sherlock

when you consistently are paid less, then you can't save as much, where is the rocket science here?

we're all pretty much in the same boat, though, you can no more retire on $114,000 than you can retire on $53,000 unless you only plan to live a couple of years in retirement

we need to therefore severely defend social security against all who would loot or dilute the program, we need to shore up medicare to be sure that it's paying enough to doctors so that they'll see medicare patients -- otherwise we're all fucked

[truedelphi]

5. Gee let's secretly allow for red-zoning of mortgages

And mortgage rates.

Let's constantly up the qualifications for every job under the sun - so to be a secretary you need a Master's Degree and the corresponding amounts of student debt.

Then wonder out loud why a certain segment of the populace cannot invest in the proper investment instruments. Instruments that lately have finally revealed their Achilles heel in terms of what they are all about.