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Today on the SOKO MRKT stage, Goldman Sachs Vice President Daniel O’Bannon spoke with host Ensa Huger, an accountant, speaker, consultant and author. Both have extensive expertise on financial issues, from budgeting to wealth management. During the conversation, O’Bannon discussed the steps he needs to take to secure his and his family’s financial future — generational wealth.
She emphasized the importance of things like writing a will and keeping track of all assets. It’s so important to openly discuss financial matters, especially in the Black community, as these conversations are often viewed as uncomfortable or not given the weight they deserve. As the saying goes, “more money, more problems,” but O’Bannon believes the real problem is not properly valuing assets. Read on to learn more about this informative panel.
Measurement to control
Being 100% honest with your accountant is an important step in the right direction. “Keeping detailed records of your expenses and income and reporting honestly to your accountant and financial manager will help you in the long run, from taxes to building savings accounts,” O’Bannon said onstage. “You can’t manage what you can’t measure.” Not tracking your money habits is a common practice specific to the Black community. And yet, because this community is already oppressed, it’s essential to make progress wherever possible.
“It’s impossible to get help if you’re not willing to ask for help and be honest with yourself and others about your situation. And I think that’s really hard because it requires a level of trust, and that’s true, but I think there’s a lot of fear, or fear of being judged, that comes with being transparent,” O’Bannon said.
Valuing assets/writing a will
“Make an inventory of your assets and discuss them openly with those around you, even if it’s difficult. From what I’ve observed, people often find it difficult to share their personal financial information with others,” O’Bannon explained. She recommends recording all your assets, including your home, car, savings, art, and any investments, finding out their value, and making a plan. Another important piece of advice O’Bannon left the audience with was to create a will after valuing those assets. Death is a heavy topic, but making sure those assets are easily passed on to your family and loved ones after you pass away is something the black community struggles with. Additionally, she encourages people to have the awkward conversations about money, assets, and wills to avoid putting their loved ones in sticky situations.
Find a Wealth Manager
One of the most important points O’Bannon and Huger emphasize is the need to work with a financial advisor or wealth manager to help you manage your finances. From budgeting and tracking expenses to making investments, a financial advisor can help keep you well on the path to financial freedom and building generational wealth. Being open and honest with your advisor from the start can be extremely beneficial.
