The only recourse for many individuals with a low (or negative) net worth is pro bono advice, and finding a sustainable business model for profitably servicing lower-net-worth households has been a struggle in the profession. The reality is that what the vast majority of African-American, Latinx, and even White households need is not necessarily financial planning advice, but rather reliable government-run programs, such as Social Security and Medicare, and sound government and economic policies to address the widening wealth gap. The lack of diversity in the financial services profession reflects the economic disparity in our society, and the lack of diversity in financial services cannot be solved without meaningful increases in the net worth of African-American and Latinx households.
Author: James Pasztor, MSF, CFP, is a lecturer at the University of Georgia and former vice president of Academic Affairs at the College for Financial Planning.
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