Wealth, or net worth, is a key determinant of living standards for American families. While liquid assets help families cope with cash emergencies, tangible assets, like cars, homes, and computers, provide people with opportunities and allow them to participate in work, school, and community life. Even assets like retirement plans make it easier to make investments in education or start a business. Given wealth’s importance, wide and growing wealth inequalities in many ways surpass rising inequality in wages and income.

 

 

In 2008, many people experienced financial uncertainty, loss of assets and a diminished quality of life due to the ecomony but most importantly from the lack of sound financial education, planning, and unbiased advice.  Also, many of our young people are graduating from college with too much debt (student loans) which affects them from buying a house or too even achieve a quality standard of living. In addition, many of our seniors have had their financial security taken advantage of which leads to a concern about outliving their assets. Minority wealth was hit the hardest from the economic downturn from the last 6 years and has widen the wealth gap o it's biggest disparity within the last 50 years. 

 

In 2014, the Wealth Diversity Summit (WDS) event was created and established in Baltimore to partner up with many local government, community and professional organizations to highlight as many ideal strategies and current programs to help reduce the wealth gap for minorities and to increase wealth equality for all Americans on the right path to achieve the American dream.

 

This event is lead and organized by, Financial Empowerment Movement, Inc (FEM) a 501©3 organization with other local government, community and professional organizations to provide as many valuable, informative and resources to united and empower the minority community. FEM, INC, is a Baltimore based nonprofit organization committed to financial literacy, progress and empowerment to less fortunate minority communities to achieve economic success and equality for all Americans. 

 

Also, this event was created in remembrance of Reginald F. Lewis legacy. Mr. Lewis broke down many wealth gap barriers for minorities as well as the importance of giving back to those less fortunate and the next generation through his philanthropy efforts.

 

Unrelenting disparities persist through the recession

 

↓ 47.1%

 

• From 2007–2010, the average wealth of the top 1 percent dropped 15.6 percent. Wealth at the median, however, plummeted 47.1 percent.

 

$57,000

 

• The median household along the wealth distribution went from a net worth of $107,800 in 2007 to $57,000 in 2010—22.0 percent less than median wealth in 1983.

 

46.9%

 

• In 2010, less than half (46.9 percent) of households owned any stock at all—even indirectly through mutual funds, and retirement plans. Less than one-third (31.1 percent) owned more than $10,000 in stocks. The median African American and Latino family owns no stock at all.

 

Minorities fare worst of all

 

$4,900

 

• In 2010, median wealth was $4,900 for African American households and $1,300 for Latino households. The median wealth for non-minority households was $97,000.

 

35.8%

 

• African American and Latino households are nearly twice as likely as non-minorities to have zero or negative net worth. A total of 18.6 percent of non-minority households, 33.9 percent of African American households, and 35.8 percent of Latino households have no wealth, or have liabilities exceeding their assets.

 

 

Wealth is the sum of all assets (the most common of which are a home, bank balances, stocks, and retirement plans) minus liabilities (such as mortgages, credit card balances, student loans, and outstanding medical bills).

 

The Great Recession decimated wealth from all demographic groups, but minorities were especially hard hit. While median wealth of non-minority households sank 35.8 percent, it plummeted for African American households (49.7 percent) and nosedived for Latino households (86.3 percent) from 2007–2010.