Billionaire Club
Rockefeller. Ford. Vanderbilt. Over time these names have been enshrined as synonymous with wealth and success. The men who amassed fortunes not only provided for their immediate families, but their extended families for generations to come. The term generational wealth is aptly applied. Generational wealth refers to any kind of asset that families pass down to their children or grandchildren, whether in the form of cash, investment funds, stocks and bonds, properties or even entire companies. While these names may be the most notable, this transfer of wealth from one generation to those after it has always occurred in the United States. Except for in Black communities.
Despite the abolition of slavery 160 years ago, members of the Black Community have consistently faced systemic barriers to fully pursuing the life they dreamed of for themselves, and also for their children. Studies have shown that in spite of legislative changes, the wealth gap in this country has steadily widened along racial lines. Throughout history, Blacks in this country have been denied the ability to accumulate assets. And as those rights were slowly gained, passing down those assets remains difficult. But I believe we are witnessing a new paradigm in this regard.
Last month, Forbes validated two new additions to the class of Billionaires in this country. Lebron James and Tiger Woods, join a handful of Americans that are both Black and worth at least one billion dollars. James has earned an estimated 1.2 Billion in earnings from salary and endorsements throughout his career. But it is the investments in real estate, a marketing company, food chains, a production company, and sports teams that bolster his net worth. Woods has an estimated 1.7 Billion in earnings from salary and endorsements over the course of his nearly 3 decades-long career. Woods also had the distinction of being the top-earning athlete in the world for 10 years straight. With his earnings and notoriety, he was able to expand into several other ventures including a restaurant, a golf course design business, and live event productions.
While rising to the pinnacle of their respective fields is nothing new for either man, this accomplishment is uniquely different. James and Woods join only Micheal Jordan to turn a successful sports career into this level of wealth. And Jordan himself didn’t achieve this status until 2014, more than a decade after he had retired. For both Woods and James to reach this mark while they are still active in their respective careers is remarkable. Both have proven incredibly shrewd in their investment choices, not agreeing to every deal and rejecting the ones that don’t fit. James famously rejected a lucrative McDonalds endorsement to be part owner of Blaze Pizza. And more recently, Woods rejected an offer from the Liv Golf tour speculated to be in the upper nine digits to play with them. While the work they each have respectively done to get to this point is certainly worthy of recognition, I think the most significant impact is at the generational level.
Obviously, they have put their families in the types of situation familiar to the Fords and Rockefellers. Their children's children’s children will be able to reap the benefits of what they have accomplished. But over the past 30 years, several Black professionals and entertainers have also entered the realm of success that leads to generational wealth building. While these outliers don't represent the majority of the community, they can provide inspiration for many to follow. Coupled with the increasing rate of financial literacy and understanding in the black community, I hope to see wealth being passed on from generation to generation regardless of the amount. Can you imagine what Black America will look like 100 years from now? What impact will the legacies that are just now being written have on the generations to come? How will these legacies transform the sense of pride and identity of Black children that will be born 50 years from now? I believe my sons will live to see a day when equality in all aspects of life is no longer a dream but a reality.