Most Black Americans, throughout American history, were shut out of our financial system, thereby not gaining the access or opportunity to accumulate wealth or an understanding of money that could have been passed down through the generations.
Earned money is the result of performing a job (you are exchanging your time, labor and energy for money), portfolio money is the result of money generated from income already earned that is now gaining value from individual stocks or bonds, or a diversified investment portfolio.
Wealthy individuals on the other hand focus on the other two types of money: portfolio money and passive income money.
Point being, a person who is solely dependent upon a W2 salaried income who makes at least $50,000 per year is in the 22% tax bracket, higher than a wealthy person’s capital gains income tax bracket.
It is important for Black Americans to understand that if you invest some money for 13 months you will pay less on that investment income in the form of capital gains tax than you will on your earned salaried income.
