Survey: African-Americans Optimistic about their Financial Future
4/15/2013, 9 p.m.
African-American investors report high levels of confidence in their financial future, along with optimism about the political and economic future of the country, according to a recent Wells Fargo nationwide survey. Despite proactive planning and intentional cuts in spending, African-American investors remain focused on day-to-day living expenses, with a large majority concerned about having enough money to retire.
Three in five (60%) African-American investors express confidence in their own financial future, slightly higher than the national response (52%), while half (52%) report they are better off now than they were three years ago, same as the general population.
"The optimism and confidence articulated by African-American investors is encouraging, particularly as those surveyed are feeling financially better off than they were three years ago," said Jeff Cosby, Financial Adviser and Vice-President, Investment Officer in the Bloomington, Minn., office of Wells Fargo Advisors, Wells Fargo.
"Where we see the biggest opportunity is helping people really consider how they are approaching saving and planning for retirement. It is important for financial advisers to help investors think through long-term strategies for investment planning, while also providing guidance on common concerns like how to balance paying off debt while continuing to save for retirement," Cosby said.
While African-American investors have made progress in retirement planning and preparation, most are concerned about having enough money to retire. African American investors are taking necessary steps toward preparing for retirement, as 45% of those surveyed have cut back on their spending to put away money for retirement (compared to 36% of the national population), and two in five (40%) non-retired African-American investors have a retirement savings plan in place (similar to the national population, 42%).
Among non-retired African-Americans, having a plan is most prevalent among those earning more than $100,000 annually (68% earning more than $100,000 have a plan vs. 35% of those earning less than $100,000).