Diversity MBA Magazine - Summer 2008 - (Page 73)

By Deneen D. Stewart In recent weeks, many Americans have received tax rebates as part of the economic stimulus package Congress passed earlier this year. Individuals making less than $75,000 are receiving $600, married couples with incomes under $150,000 who filed jointly are getting $1,200, and parents are being paid an additional $300 for each eligible child. What’s the best way to spend that money? Don’t spend it at all -- save it. If you’ve already stored away some cash, adding a few hundred more dollars means an even greater return on your interest rate. And if you don’t yet have a financial safety net, you’ll now have a quick-andeasy way to start one. This tax rebate comes at a great time for minorities in the United States. Despite tremendous gains in income and education over the last few decades minorities on the whole still aren’t saving nearly as much as they should. June 2008 Top 1 0 0 Unde r 5 0 D i ve rse Le ade rs The situation is especially serious when it comes to retirement savings. Less than half of all black workers have saved for their golden years, according to the U.S. Treasury Department. Only about a quarter have even tried to figure out how much money they’ll need to retire. Even worse, Americans will find traditional sources of retirement income increasingly scarce in the coming years. Employer-sponsored pensions are drying up, as more and more businesses switch to 401(k)s and other individual savings vehicles. And Social Security -- which four in 10 black retirees depend on for all their income -- is generally expected to go through some major financial upheaval by 2020. Of course, savings aren’t just for your golden years. A nest egg enables you to make a major purchase, like a house or a new car, without going into debt. And it can soften the blow of economic downtimes after a layoff or medical emergency. Yet few black families have a sufficiently sized nest egg. According to the National Urban League’s “State of Black America,” the typical black household has a net worth of only $6,100. That’s about 11 times less than the average white household. And only 57 percent of blacks are invested in mutual funds or own stocks, versus 76 percent of whites, according to a study from Ariel Mutual Funds and Charles Schwab. 73

Table of Contents Feed for the Digital Edition of Diversity MBA Magazine - Summer 2008

Diversity MBA Magazine - Summer 2008 Contents Letters to the Editor In Your Own Hands Editor's View Find Your Power Voice Business Briefs Off the Shelf The Fourth Annual Top 100 Under 50 Diverse Corporate Executives Negotiation: The Art of Persuasion or Zero Sum Game? Career Planning for Tomorrow's Hispanic Workforce Who's Who In Diversity Entrepreneur Profile: Anita Santiago: Doing It Her Way Businesses that Keep On Giving Rising Sun Going Global: Will An International Assignment Benefit Your Career Work-Life Balance and the C-Suite: An Oxymoron? A Call to Save Travel: Off the Beaten Path - Chile Drawing the Line – Latin Art Exhibit The New Taste of Latin Cuisine American Sabor: Exhibit Highlights Latino Influence in Pop Music Crafting Specialized Business Degrees Latest MBA Salary Suggests MBA Is A Safe Haven Gadgets & Gizmos Gone Phishing – How Scammers Mine Private Data From Web Surfers Advertiser's Index The Meaning of Sanctuary

Diversity MBA Magazine - Summer 2008

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