Employer-sponsored retirement funds could be an effective avenue into the world of investing for many African-Americans, who have historically lagged behind their Caucasian counterparts in stock market participation, the eighth annual
According to the survey, conducted by the San Francisco-based financial services giant
Retirement plans, they said, could help level the playing field. That's because among the African-Americans and Caucasians that currently participate in a 401(k) or some other employer-sponsored retirement plan, there exists a striking number of similarities. For example, similar percentages of Blacks and Whites seek help from investment advisors. The percentages that manage their own portfolios are also similar, as are the numbers who choose a retirement investment and then rarely make changes.
The success that retirement plans could have on closing the gap in Black and White investing, however, depends greatly on employers, the survey added. For starters, Blacks show a preference for receiving information on their retirement plans through one-on-one meetings with benefits advisers, rather than through e-mail or on the Internet. They are particularly receptive to information provided by their employers, the survey said.
"If we can raise the comfort level through more personalized service and stronger communications, we will see a leveling of the playing field," remarked Mellody Hobson, president of the Chicago-based Ariel Capital.