Blueprints to Black Wealth

INVEST IN YOUR FUTURE 

CHOOSING 
HOME OWNERSHIP

One of the great urban success stories of the past decade is the economic revitalization of Detroit, Michigan. New companies, jobs, and workers have invigorated this once-dying industrial port into a thriving technology center, service sector, and advanced manufacturing hub. This new renaissance has expanded beyond the city’s modernized downtown and other business districts to encompass previously blighted and abandoned neighborhoods.

However—and ironically—one group is lagging behind in achieving homeownership: Black Detroiters, who compose 77% of the city’s population, the largest percentage of any major metropolitan area. According to a 2021 report commissioned by the National Fair Housing Alliance, in the 10 years from 2009 to 2019, homeownership among all groups in the city (except Hispanics) declined. However, among white residents who compose 9.5% of the population, homeownership stood at 53% compared to 45% among Black residents. 

One reason for the disparity is clear: That same report revealed that mortgage applications from Black homebuyers in Metro Detroit were more likely to be denied, with nearly 40% of Black applicants facing rejection compared with 18% of white homebuyers. And according to a 2019 CNBC report, Detroit ranks among the bottom five U.S. cities in median credit scores, tied with much smaller communities such as East St. Louis, Illinois, and Chester, Pennsylvania. 

Nationwide, the housing gap is just as stark. According to the U.S. Census Bureau, 76% of white households owned their homes at the end of the second quarter of 2020, compared to just 47% of Black households. That’s a 29 percentage-point difference, perpetuated by decades of housing and economic policies favorable toward white buyers and designed to exclude Black buyers.

Owning a home versus renting contributes to wealth creation, but discrimination in housing and credit markets has clearly limited Black families’ ability to attain housing equity.

Committed to an inclusive renaissance for all Detroiters

Prudential believes Detroit’s limitless potential 
should not be limited to a select few. That’s why 
the firm is partnering with national nonprofit 
GreenPath Financial Wellness to introduce debt 
management advice and tools to its growing suite 
of workplace financial wellness solutions. Founded 
in 1961 and headquartered in Metropolitan Detroit, 
GreenPath has helped empower people nationwide 
to lead healthier financial lives.  

Both organizations realize input from the community 
is key in developing population-specific solutions to 
improve debt and credit management, boost 
financial wellness, and increase homeownership. 
In 2021, GreenPath launched its innovative 
“Detroit Voices” research initiative with the goal of 
soliciting community feedback to build relevant 
financial education. The nonprofit also provides 
in-depth homebuyer counseling and housing classes 
for prospective buyers, and foreclosure prevention 
and support services to help distressed borrowers 
stay in their homes. 

GreenPath’s workplace program participants and 
other members can take advantage of a free session 
with a Prudential financial professional to establish 
goals and explore debt repayment options. For a fee, 
they can also choose to enroll in a formal debt 
management plan designed to pay off outstanding 
balances in five years or less.

These kinds of inititives can make a real and positive difference in helping Black Detroiters break the debt cycle. They’re able to find ways to save for a down payment on a home or a car, or save for college, or build an emergency fund. 

Lowering debt also reduces financial stress and improves workforce productivity. Notes Vishal 
Jain, vice president, Strategic Initiatives, EC-Financial Wellness at Prudential, “Helping individuals minimize the impact of debt is an important expansion of our financial wellness efforts, and we 
are excited to work with an organization like GreenPath, which shares our passion for solving financial challenges.”

Kristen Holt, president and CEO of GreenPath, agrees. “Navigating debt and finances can be confusing and stressful. We are thrilled to partner with a like-minded leader in workplace financial wellness to reach more people with our proven tools to reduce debt and financial stress.”

Through education, advice, and partnership with organizations like GreenPath, Prudential is 
working to help residents and neighborhoods of color benefit from the renaissance that is driving Detroit forward. 

COMMITMENT THROUGH ACTION

FOSTERING 
FINANCIAL INCLUSION 
WITH DFREE

From Dr. King’s time to today, collaborations are key to driving equality forward.
By Lata Reddy, senior vice president, Inclusive Solutions at Prudential

February 24, 2021

The past year has seen a resurgence in Black Americans’ fight for equal treatment under the law and equitable investment in their communities, with nationwide protests sparking comparisons to the civil rights movement led by Dr. Martin Luther King Jr. a little more than 50 years ago. At the same time, the COVID-19 pandemic has laid bare the systemic racism that still pervades society and erased much of the financial gains Black Americans have made in recent years, with nearly one quarter seeing their household income reduced by half or more, according to Prudential’s Financial Wellness Census.

One of Prudential’s partners in addressing the key issue of financial inclusion for Black Americans is Dr. DeForest “Buster” Soaries, a pastor, chairman and founder of the dfree® Financial Freedom Movement. I spoke with Dr. Soaries about Dr. King’s legacy, his focus on driving broad economic prosperity and the opportunity for institutions and organizations to collaborate in pursuit of that shared goal.

I was very young when Dr. King was assassinated, but his legacy was a key reason I decided to pursue a career as a civil rights attorney and I ended up going to law school with Bernice King, Dr. King’s youngest daughter. What are your memories from that time?

I will never forget what happened on April 4, 1968. I was a junior in high school in Montclair, 
New Jersey, and I went to my grandmother’s house to steal a piece of pie. I was thwarted in 
my attempt by seeing her sitting at her dining room table with tears in her eyes. I had never 
seen my grandmother cry before. She said, “They shot Dr. King today.” I didn’t really know much about Dr. King. But on that day, when I saw that my beloved grandmother’s life affected so significantly by the life of one man, I decided that I wanted my life to be as impactful as Dr. King’s was on my grandmother.

What type of leaders do we need today?

When Dr. King led, there was a need for articulate, dynamic and charismatic leadership to 
represent the masses. The challenges we face now are much more widely distributed. We’re 
no longer necessarily looking for charismatic leaders who can speak to a crowd of 250,000 
people. Leadership today is more by sector than global. Today, we have a different kind of dynamic, and so we need a multiplicity of leaders, whether it’s in the arts or the sciences, academia or financial services.

How are you seeing people collaborate, and how important is that in getting the work done?

We see strong collaboration among Black Americans within specific industries, and we see the emergence of sectors where networking, mentoring, advising and watching each other’s backs is becoming the norm. Now, I think we need to collaborate across sectors. 

If you look at Dr. King’s model, he formed collaborations. There would have been no March on Washington had the church leaders not collaborated with the labor leaders. That model is what King called "The Beloved Community," and there is no reason for corporate leaders to exempt themselves from The Beloved Community. 

There’s a lot being said about the expectation for corporations to play a leadership role in addressing societal issues, to demonstrate a sense of purpose through their business strategy. What are your thoughts on that?

We cannot overestimate the impact of having a viable corporate community. The free enterprise system in corporate America is critical to the kind of quality of life that all of us want and we need to appreciate that.

You run a program called dfree® and Prudential is a partner. Let’s talk a bit about that program and our partnership, and why partnerships like ours are so important.

Experts say Black Americans are the most optimistic people in the country. But, beneath that veneer of optimism, there’s a tactical pessimism that has become too normal for people, where we just don’t see our way out.

I realized that a problem I kept bumping into in my work with my congregation and community was financial incapacity, where middle income families were living paycheck to paycheck. The families had great jobs, and were executives, but had no savings accounts. After doing some research into the issue, we found that having no financial plan or budget at all was an almost self-inflicted barrier to financial freedom.  Remarkably, the work we had begun doing matched and aligned with the results of the study that Prudential had done on the African American financial experience.

In response, in 2005, my team and I launched dfree®, a Financial Freedom movement 
composed of a curriculum designed to help individuals become debt-free, avoid financial pitfalls, and create savings and investment plans to ensure better financial futures, including funding their retirement dreams.

The partnership between Prudential and dfree® is a paradigm of possibility for companies 
that really want to connect with the community in a way that’s meaningful, respectful and 
mutually beneficial.

Prudential, as you know, was founded here in Newark. Following the 1967 civil unrest, we decided to take an affirmative role in the revitalization of the city. We started seeding what we thought would be fruitful investments. We can look around now and tell the through-line of how those investments have paid off for the city and its residents.

Prudential invests in relationships and partnerships that demonstrate what justice really looks like. We need more templates like that, which can be replicated.

We know that the more corporations embed this kind of behavior into their business model, the better off we’ll all be. When directed in the right way, we can make a huge impact at a scale that is sustainable for generations to come.

So where are we going? What would you like to see? What would you like to see us do together that we haven’t done yet?

From my vantage point, I believe strongly in the power of capital markets to make a change. And the power of business. At Prudential, it’s about returning to our original charter, which was to drive progress, not just generate profits. We use our capital to help create the change we seek, especially as we continue to advance the work on Prudential’s nine racial equity commitments.

Access to capital is critical to the health of any community. I make no bones about sharing the value of a partner like Prudential as it relates to creating not only sustainable lifestyles, but also a legacy once we’re gone. The whole strategy of partnering with existing companies and helping them expand outward is empowering, and it’s progressive.

INVEST IN YOUR FUTURE 

PREPARING TO MEET WITH FINANCIAL ADVISOR

Mar 24, 2021 - 3 min read - Zina Kumok

Key Takeaways

   • Write down questions to ask in your first meeting, and bring a notepad to record the answers.

   • Find out about pricing, available services and how the advisor is compensated before you pay for
      the consultation.

   • If you don't understand something—anything—ask for clarification.
 
Meeting with a financial advisor for the first time can feel a little like working with a personal trainer. You might have some trepidation, but it becomes progressively easier as you adjust to 
the process. 

To get the most out of your first meeting, bring a list of questions. Here are some important considerations and things to ask.

What to know before meeting with a financial advisor

Wondering how to find a good financial advisor? Like any important decision, it takes a little research to find the best option for your circumstances.

Before you schedule a meeting with a financial advisor, take some time to compare various advisors to see who best fits your needs. Do you have questions about your investment portfolio? Are you worried about budgeting? Do you want to get a retirement plan in place? Make sure the advisor specializes in your specific concerns. Many will answer questions via email before you set up a meeting. Use those answers to help form your decision.

What information does an advisor need?

Depending on the kinds of services you’re looking for, a financial advisor may need to know:

   • The amounts in your checking, savings and retirement accounts

   • Your total debt balance, including mortgage, auto loans, student loans, credit cards, personal loans,
      lines of credit and more

   • Your investments, any pension or stock options and whether your company matches your
      retirement plan contributions

   • Your savings goals, like paying for a child’s college education or remodeling your kitchen

What to bring to your first meeting

Take a few days to brainstorm questions before 
the meeting. Bring a notepad (or your phone) with 
your questions and refer to it if needed. Make sure 
to also take notes on what the advisor says.

You should also print out statements from your 
banks, lenders and investment providers. Bring 
copies of your current insurance policies as well, 
since your advisor will want to know every financial 
tool at your disposal.

Questions to ask

During your initial meeting, ask the financial 
advisor about how they’re compensated. Some 
receive a fee for the conversation. Others will 
deduct a percentage—typically 1% a year—of the 
amount of money you let them manage. And still 
others will receive a commission for selling you 
certain investments. It's important to know how 
they’re paid, since it helps shape their advice.

Also ask about the specific services they provide. 
You want to make sure they can tackle the issues 
you need.

The key to the conversation? If you don’t understand something, ask for clarification. A good financial advisor won't judge you for posing questions or for revealing less-than-flattering details about your financial situation.

What to ask your financial advisor each year

Whether your life stays the same or changes drastically, it helps to meet with your financial advisor once a year. At the follow-up meeting, ask about anything that's cropped up since your last appointment, such as whether a recent market downturn has delayed your plans to retire or if you need to ramp up saving for your child’s college education.

What you can do next

If you’re married, talk to your spouse about the questions you may have for the advisor, then draft a list of basic questions to ask via email or phone before your first official meeting. You can find a Prudential professional near you by searching here.

Zina Kumok is a freelance writer specializing in personal finance. She has written for the Associated Press, Indianapolis Monthly and more. She also writes a blog about how she paid off her student loans in three years.

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FOSTERING FINANCIAL INCLUSION WITH DFREE

What type of leaders do we need today?

How are you seeing people collaborate, and how important is that in getting the work done?

There’s a lot being said about the expectation for corporations to play a leadership role in addressing societal issues, to demonstrate a sense of purpose through their business strategy. What are your thoughts on that?

You run a program called dfree® and Prudential is a partner. Let’s talk a bit about that program and our partnership, and why partnerships like ours are so important.

We know that the more corporations embed this kind of behavior into their business model, the better off we’ll all be. When directed in the right way, we can make a huge impact at a scale that is sustainable for generations to come.