INVESTMENT

More Hispanic Americans should invest in the stock market


For the Hispanic American community, home ownership is generally seen as one of the few ways to create wealth.

One reason may be the actual nature of home ownership; A home is an asset that you can see and touch. Another reason may be the idea that owning a home ensures the well-being of your family. Yet, even with this focus on real estate assets, Hispanic home ownership rates – 50% – are still far from white Americans.

By 2019, the wealth gap between Hispanic and white households stood at $ 0.21 per white American asset. In this article, I will talk about some of the reasons why Hispanics can consider investing in real estate as well as the stock market as a way to create sustainable generation wealth.

Two reasons to invest in the stock market can help the Hispanic community.

I can relate to the instinct that home ownership should be “Item No. 1” on the financial checklist. My mom and I bought our first home when I was 21 years old. We need at least $ 5,000 for a down payment, which can be as high as 50,000. After accepting some sacrifices, we finally saved enough to buy our first home for just 150 150,000. It was all our money.

Reflected today as a financial planner with over 20 years of experience, I understand how risky our investment was. We achieved our goal of home ownership, but there was no equity or savings to cover unexpected costs.

Be prepared for emergencies.

What if one of us was sick or injured? Costs can bankrupt us and the house we have worked so hard to buy can cost us.

One of the most common principles of financial stability is to create an emergency fund. An emergency fund carries your specific costs – such as rent, food, child care, etc. – stored in an account that you keep separate from your checking or savings account.

Typically, a strong emergency fund costs three to six months, but starting with a small goal that motivates you more can help you get there faster. You should also consider saving for your emergency funds in a low-funded investment account, as this will help keep the value of your money in inflation or even surpass it.

Build the wealth of the generation.

Investment access has changed dramatically in the last 20 years. Companies like Betterment now offer low-cost investment options and, with low fees, empower young families to use the money they already have to build their wealth – buying a home to offset the kind of financial risk my mom and I took while doing everything. Was about.

Even a small amount of investment and adding to your investment over time can be a great way to create wealth. If and when you finally decide to buy a home, a portfolio of diversified investments in real estate as well is an ideal foundation from which to build solid, sustainable assets for future generations.

Don’t be afraid to start.

Today, few homes are available for under 150 150,000. Young Hispanic Americans are earning on average more than in previous years, but they are facing new barriers to home ownership. Many are burdened with student loans, lack of affordable housing, and limited enrollment among other things. This does not mean that young Hispanics will never buy a home or make a fortune. It simply means that we have to be open to planning, which we can consistently save and invest in the stock market.

Betterment strives to help its customers build their assets more sustainably, so that families can achieve their financial goals, including home ownership, while helping with financial risk.



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button