Wealthy black Americans feel better off than they did five years ago, and think the country is better off as well, according to research released last week by Northern Trust.
Black respondents to Northern Trust’s Wealth in America survey of people with $250,000 or more in investable assets attributed their positive outlook to market stability and the re-election of President Barack Obama.
Sixty-two percent said they felt better about their personal finances than they did five years ago, compared with 29% of overall survey respondents who felt this way.
Half of blacks surveyed also thought the U.S. was better off, compared with just 18% of total respondents who shared this sentiment.
Black entrepreneurs surveyed also expressed optimism about the future growth of the economy. Respondents noted these plans for the next 18 to 24 months:
- 47% will hire more workers
- 37% anticipate keeping staff levels stable
- 34% intend to invest in information technology
Sixty percent of black business owners identified increasing revenue as their main focus.
Planning for higher taxes and investing in the future growth of the business were of key importance to about a third of respondents. Twenty-one percent were focused on succession planning.
The majority of wealthy black survey participants said 63% of their total household assets came from earned income, while 11% came from investment returns. This compares with 44% and 22%, respectively, in the general population.
“Wealthy black Americans are often first-generation stewards of wealth,” Linda Nolan, a Northern Trust managing director, said in a statement.
“Many are business owners who consider their hard work as a key to achieving their financial goals. While many want to grow their wealth, just a small group reports actually having an established financial plan to help ensure they are on track to meet their goals.”