A 401K Education for Black Baby Boomers

Before I begin this blog post let me issue this disclaimer:  I am NOT a financial expert.  Yes, I did work at Merrill Lynch for a brief time (more than 30 years ago) and I did get to understand a little about how the Stock Market works so the information I share here is only based on my personal knowledge.  You can take it or leave it.

This blog post was inspired by a co-worker, who is a fellow black baby boomer (in a world of Millennials). We were discussing our 401K accounts.  I asked her if she had one. She did.  I then asked her if she knew what she was invested in.  She did not.  I then asked her if she knew how much money was in her account. She did not and then she proceeded to tell me how she really didn't understand much about the account. 

Surprising?  No, not really.  Disappointing?  Yes, absolutely!  But in all reality, she can't be totally blamed for her lack of knowledge.  That tends to be the issue among many black baby boomers when it comes to financial matters.  We are not on golf courses or fancy cocktail parties discussing our investment portfolios. Ask the majority of black baby boomers if they know the difference between an over-the-counter market versus an exchange market and I'll bet you they don't know.  And then we wonder why we don't have enough money to live on in retirement---all the while continuing to make our pastors rich and looking for God to grant us our financial blessings.  Maybe the church should spend more time educating us on financial matters. 

I'll be perfectly honest.  Had I never worked for Merrill Lynch I probably wouldn't know as much as I do now but that education has inspired me to learn even more and to take charge of my 401K because I do want to live comfortably in retirement without relying solely on social security.  

What you should know:

401K:  A deferred compensation plan set up by an employer so that employees can set aside money for retirement on a pre-tax basis.  Employers may match a percentage of the amount you contribute to the plan (And you should take FULL ADVANTAGE of that!)  Contributions by both you and your employer, as well as investment earnings and interest, aren't taxed until the money is withdrawn from the account.  And if you do withdraw early you will be subject to an early withdrawal penalty of at least 10 percent.  


Stocks:  Shares you purchase which gives you ownership of a corporation.  Of course, the more you buy the more you own.


Common Stocks:  Securities that represent equity ownership in a company.  Common shares let an investor vote on matters involving the company like the election of the board of directors.  They also give the holder a share in the company's profits via dividend payments or the capital appreciation of security.  

Blue chip stocks:  Stocks from companies that have a history of growth and dividend payments (IBM, Proctor and Gamble, Wal-mart are some examples)

To learn more about 401Ks, please read this article from one of my favorite online writers Emily Brandon:  10 Strategies to Maximize Your 401K Balance 

Black Lives Matter No Matter How Old You Are

A few months ago I bought a Black Lives Matter T-shirt.  

I LOVE wearing it!  If I could wear it every day I would.  It makes a statement on how I feel about the state of race relations in this country.  It should say to anyone who sees me that I care about the mistreatment and downright brutality being levied against our people---especially the young black males.

This brings me to an incident I had today at Harris Teeter.  I was standing in line behind another older black woman.  She saw my shirt and proceeded to comment about how she didn't understand what the movement was all about and why was it necessary to make a t-shirt to demonstrate.  Being the soft-spoken person that I am, I told her it was no different than what young people did during the 60s and 70s movement and I wanted young people to to know I stand in solidarity with them.  

You know, I am always amazed at how older people tend to forget they were young once and all of the things they did---right or wrong/good or bad---for the "cause."  Once we turn a certain age we become holier than thou and act as if everything is okay the way it is.  We turn a blind eye to the things we see and read and what we hear falls on deaf ears.  

Police brutality against blacks didn't just start in the new millennium.  The only difference is there was no social media back then---no camera to record what was really going on. And, unlike, many of today's youth, a lot of people, back in the day, stayed silent in fear of what might happen to them.  Perhaps the woman in Harris Teeter feels like her fight is over and she chooses to remain silent, but as for me I'm going to keep wearing my Black Lives Matter T-shirt because I know the struggle is very real and it continues. 

As Desmond Tutu once said, "If you are neutral in situations of injustice, you have chosen the side of the oppressor."