Black investors lag in 401(k) contributions and ownership of stocks and mutual funds when compared with whites, according to a survey by Ariel Investments and the Charles Schwab Corp.
About 90% of both groups had access to a defined contribution plan, and about 90% of both groups contribute to their plans. But the survey showed whites contributing a median $249 each month to 401(k) plans, while blacks contributed a median $169 per month.
The survey showed that 62% of blacks earning $50,000 or more a year own stocks or mutual funds, compared with 82% for whites earning the same. Stock ownership among blacks since 1997 has fluctuated between a low of 57% in 2007 and a high of 74% in 2002, while 80% of whites owned stocks during that 11-year span.
The survey of 503 blacks and 506 whites between June 11 and July 13 found changing opinions from both groups about preferences for investing in real estate. Thirty-nine percent of blacks said it was the best investment overall, compared with 61% during the height of the real estate bubble in 2004. Whites also had a lowered opinion of real estate, with 28% choosing it as their preference, compared to 51% in 2004.
The survey can be found at www.arielinvestments.com.