Why a Lot of Black People Do Badly With Investing; How To Do Better

Reported by Liku Zelleke

Managing your personal wealth is almost always going to be one of the most worrisome parts of your daily life – for a long time. The load of worries increases proportionally as the number of people in your family increases.

Now, although it does make sense to worry about the ups and downs of financial markets (especially if you are heavily invested in them), the most important thing to remember is that you need to control and manage your fear.

Again, that is an arduous and almost impossible task if you have a lot of money and you realize that its presence or absence affects everything in your life. But, according to money coach and author Jacquette Timmons, managing that fear can be particularly difficult if you are black.

She says, “Many of the blacks who are investing and climbing the wealth ladder are experiencing early generational wealth–being among the first in their family to amass wealth.

“It often comes with a sense of responsibility–people feel like it’s their duty to protect the money for their families. Someone in this situation would be a candidate for panic selling when they see a market falling because they would have a heightened concern about minimizing their losses.”

These trends have actually been seen in real life: According to Ariel Investments LLC, almost a quarter of African Americans would pull their money out of the market in the event of a downturn in comparison to just 10% of whites.

This means you shouldn’t jump ship at the first sight of rain – or even a lot of it, for that matter.

“Investing is for the long term. Do not worry about how your investment did in the past few months. Stocks are still one of the best places to put money when the time horizon is 10 years or more. Experienced investors like Warren Buffet love market downturns because they can now buy stocks at a lower cost,” says Paula Boyer Kennedy, a certified financial planner and author.

Therefore, you should plan for at least year and stick to the plan.

“Money you need within one to five years should be in a money market fund, a certificate of deposit that you can roll over or a regular savings account. Money that you don’t need for five to 10 years should be in the financial markets, I recommend a mutual fund that skews more toward stocks. As for money you don’t need for at least 10 years, you can be really aggressive with stocks. Make sure you have some international exposure as well,” Timmons says.

Finally, never forget that you don’t really lose any money in the stock market until you sell.


I want to help those of you who are trying to move forward. So I have prepared a booklet that can help you find the money you need to buy a house or whatever.

The cost is only $5 and you can download it. Click here if you want the “Funding Report”.


About Mastering You

"Mastering You" is about helping African American's to see their value in this world. I post only positive stories and information about what African American's have contributed to society in the past and currently. I don't post anything about Sports, Entertainment, Religion, or Politics. I also don't post anything that has a negative spin. While I am aware that there are negative things happening all over the world and that most people focus on the above four topics when it comes to African American's that is not my goal. If all you heard was negativity about any race that's all you will come to expect from them and everything else will be out of the norm. My goal is to show everyone that the negativity is often out of the norm, or at best they are equal to the positive. Just like every other race.
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