THE POWER OF BLACK GENERATIONAL WEALTH

?Investing in real estate to build wealth is hardly a new concept and has always been a significant driver of wealth. Generational wealth includes financial assets — such as property, investments, money, NFT’s or anything with a monetary value — that you pass down from one generation to the next. Intangibles like financial education, values, and habits are an equally important part of the equation.

As a thought leader and astute trailblazer, my mission is to generate wealth for my clients through real estate while providing access to premier resources. This endeavor is designed to connect them with top-tier wealth management professionals who reflect their identity, excel in their fields, and are deeply trusted. Fellows Luxury Group offers direct access to esteemed African American Wealth Management Professionals and Entertainment Attorneys. These professionals not only share an understanding of the unique disparities and challenges we face but also demonstrate profound empathy and competence. Real estate is the initial step; however, when you align with a wealth manager and assemble the finest team, the foundation for true generational wealth is set in motion.

The initial economic discussion we engage in focuses on the equity profits derived from their property investments. The subsequent inquiry delves into the allocation of this equity. While the straightforward response might be to invest in another property, thereby expanding a real estate portfolio, I urge them to envision a broader horizon that extends beyond real estate. My clients benefit from my extensive experience exceeding 15 years in Private Wealth Management, seeking insights on forging generational wealth. They require a leader who is not only at the pinnacle of their profession but also resonates with their identity and earns their trust.

Often, my clients are uncertain about how to manage the surge of income from their accomplishments. My mission extends beyond being a mere expert in real estate; it is to furnish them with resources that endow them with the wealth expertise necessary for the amplification of their financial prosperity.

E.J. Fortenberry, Assistant Vice President and Wealth Advisor at Bernstein Private Wealth Management, shares his perspective: Wealth contemplation must account for the possibility that tomorrow's affluent may not mirror today's. An evolving dynamic is evident, where the spectrum of wealth is broadening, with increased contributions from black and brown communities in both wealth creation and innovation. It's critical to acknowledge that the path to wealth is strewn with gaps, obstacles, and potential setbacks. This complex terrain necessitates a nuanced approach to financial education.

The adage 'more money, more problems' holds some truth, yet the emphasis should be on assembling a supportive cohort for your wealth journey. Thus, the pivotal question is: who is on your team? In constructing this team, it's essential to include individuals who can truly understand your unique financial situation. For instance, two individuals may share a wealth source, such as athletes, entertainers, or entrepreneurs, but the points at which they engage with wealth differ significantly. Our historical interactions with wealth shape a distinct narrative, underscoring the need for equitable wealth management and advice.

When we discuss education in the context of wealth, we're not necessarily referring to formal schooling, but to financial literacy—the synergy of professional expertise that equips you with the knowledge to achieve what has historically been elusive for people of color in terms of wealth management.

James Seth Thompson, SVP/National Director and Head of Diverse Markets Strategy at Bernstein Wealth Management, shares his insights. We conceptualize this as a synergy of equity, exposure, education, and experience. Addressing the requirements for individuals to generate, maintain, and bequeath wealth, one must collaborate with a supportive ecosystem of adept professionals. This includes wealth managers, CPAs, attorneys, and business advisors, who together alleviate the anxieties and complexities of wealth management.

The common adage 'more money, more problems' captures the essence of wealth accumulation, but it's crucial to shift focus towards assembling a supportive entourage for the journey. The pivotal question is: who is on your bus? Assembling your team, it's imperative to include individuals capable of meeting you at your current state. Two individuals may have identical wealth sources, such as athletes, entertainers, or business owners, but their access points and historical relationships with wealth diverge significantly. This underscores the importance of equitable wealth management and advice.

Education, in this context, transcends traditional schooling and emphasizes financial literacy. It's about how a network of professionals can collaborate to empower you with knowledge and tools that historically were inaccessible to people of color.

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Wealth creation is not solely about income; it's about having a vision for it. Self-awareness and education are fundamental in charting a path toward wealth accumulation. For too long, black and brown communities have harbored distrust towards financial advisors, a sentiment born out of legitimate concerns. Yet, as the faces across the table begin to change, it's time to seek out those advisors with whom we resonate and to be deliberate about our income and financial aspirations.

We frame our approach to wealth in terms of equity, exposure, education, and experience. The creation, sustenance, and transfer of wealth necessitate a collaborative environment with seasoned professionals. This means assembling a team that includes wealth managers, CPAs, lawyers, and business managers—experts who can help navigate the complexities and anxieties associated with managing income and wealth.

While wealth creation often conjures the maxim 'more money, more problems', the essence lies in finding the right companions for your financial journey. It's crucial to ask: who is on your bus? Assembling your team, it’s essential to ensure that it comprises individuals who can meet you at your point of need. Even if two people have identical wealth sources—be they athletes, entertainers, or business owners—their access points to wealth and historical interactions with it differ, necessitating equitable wealth management and advice. In terms of education, it transcends formal schooling and is more about achieving financial literacy—how an ecosystem of professionals can synergize to provide the guidance that enables historically underserved communities to leverage their wealth in ways previously inaccessible to them.

Wealth creation is not merely about generating income; it's about setting intentions and goals for that income. This requires self-awareness and education to craft a strategy for wealth accumulation. Historically, skepticism has marred the financial advice given to black and brown communities, a sentiment based on justified mistrust. However, as diversity increases among financial advisors, it's time to connect with those with whom we resonate and to be deliberate about our financial objectives and the paths we choose to achieve them.

?How we like to think about this is equity, exposure, education and experience. When I think about the needs for individuals again to create and sustain and transfer wealth, you really have to work with individuals, you have to be part of an ecosystem that has the right professionals at your table. So you have to think about wealth management, you have to think about your CPA, you have to think about your lawyers and the business managers. And these are the people in your circle that are going to help you deal with the anxiety and the complexity that comes with income and managing wealth.

We always think about wealth creation and attaining wealth, as more money more problems, which is true to some degree, but the focus should be on trying to find the right people to come along with you on that journey. So the question becomes, who is on your bus? And when you think about filling your bus, your team,? you need to make sure it has people that have the ability to meet you where you are. Because, two people might have the same source of wealth and income, like when we think about athletes or entertainers or business owners, but where they access the wealth is very different. Our historical relationship with that will be quite different, so this whole idea of equitable wealth management or equitable advice. So when we think about education, in my mind, it's more about literacy. And not necessarily going to school and getting educated, it's how does that ecosystem of professionals work together to help give you the information to be able to do the things that historically people of color have not been able to do with their wealth.

Wealth creation starts with income, but when that income starts being generated, you need to have a goal for it. You have to be self-aware enough to understand that you need to start to educate yourself, and that you need a clear roadmap to begin to start to accumulate and generate wealth. For a long time, black and brown people felt that they couldn’t trust the people on the other side of the table that were giving them advice. And they have every right to feel that way. But the face of those people on the other end of the table are changing as well. And now that that is the case, we have to start reaching out to those people we feel comfortable with and becoming intentional with our income and the goals we have for it.

James Seth Thompson, SVP/National Director and Head of Diverse Markets, took a moment to share his insights on the guidance he would offer to the younger generations.

Generations across the board must consider the implications of coin versus cash, and digital currency in comparison to traditional capital markets. However, possessing a clear goal for your wealth guides the role core investing and capital markets will play, as opposed to newer, less conventional methods of wealth acquisition. It is crucial to understand what will bolster and broaden your perspective on wealth expansion. Dismissing traditional wealth creation methods that families have relied on for centuries can be a mistake, especially since distrust in conventional advice sources may steer the newer generations away.

Moreover, when contemplating how younger individuals can initiate and build wealth, it revolves around devising a meticulous plan and being purposeful at every juncture—from budgeting and saving to strategic capital investment allocations. Developing sound financial habits is imperative; otherwise, the magnitude of one's earnings becomes irrelevant. This rings especially true if, upon retiring from an income-generating career, there is nothing to show for it. We often hear of athletes and entertainers who earn millions yet face financial ruin shortly after retirement. The reason is startlingly straightforward—they lacked a financial strategy and did not manage their finances with intent. Nor did their advisors prioritize the preservation and enhancement of their wealth.?

Thus, I advise the younger cohorts to familiarize themselves with fundamental financial skills, including budgeting, planning, and saving. As wealth begins to accrue, it's essential to cultivate a circle of trusted advisors. These professionals will accompany you on your journey to generate and maintain wealth. Taking these steps early paves the way for enduring success.?

For younger generations, segmenting life aspects can greatly simplify the process of saving, budgeting, and investing. Much of this hinges on self-awareness and the capacity for vulnerable self-assessment to understand personal goals, which then informs how to allocate resources and plan investments accordingly.

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There's a prevailing myth that professionals of color are not equipped to manage wealth, stemming from deep-rooted trust issues. We must all contribute to changing this narrative. To those of color who harbor doubts about investing or the professionals in the industry, I say this:?

Errol and James, both serving the Sports and Entertainment Elite, echo a shared sentiment. The historical mistrust among black individuals towards the market, given our conservative tendencies, means assets we cannot physically hold have often been ignored for investment. Wealth, traditionally, hasn't mirrored our image, leading many people of color to view investment opportunities as exclusively white domains due to historical inequities in the financial system. As the face of wealth evolves, so do the advisors within the industry.

This sentence maintains the original meaning but uses more commonly understood terms, which might resonate more strongly with a wider audience., as the visage of wealth evolves, so too do the advisors within it. An increasing number of professionals of color in financial services are now poised to dismantle these myths and empower their communities, drawn together by shared culture, struggles, and opportunities.

As one ascends the wealth creation ladder, guidance through the complexities and anxieties—often sparked by 'sudden wealth syndrome'—becomes crucial. It is our responsibility to illuminate the potential pitfalls and arm our clients with strategies to navigate them. The true value lies in advice, not just in providing accounts.?

Seeing others within our community successfully engage with an advisory model boosts collective confidence to participate. The acceleration of this engagement depends on the intentionality of professionals to meet the unique needs of black investors. The imperative is on all financial professionals to conduct equitable and thorough discovery, recognizing each individual's starting point, to help bridge the wealth gap. Everyone within the wealth creator's network must commit to offering consistent advice and education, as this is key to achieving economic parity.?

If you're considering real estate investment as the foundation for building generational wealth, the importance of choosing the right team cannot be overstated. Success in buying and selling hinges on expert guidance and tailored strategy. For a personalized consultation to embark on your journey, I invite you to call me at 1-213-408-9912 or email [email protected]. #Homebuying #Wealthmanagement #Sportsrealestate #realestateinvestment #Financialgoals