With Latinos Lagging in Retirement Saving, Here’s How this Startup hope to change that
Originally published on Remezcla
Compared to their white and Black peers, Latinos have a longer life expectancy. However, this fast-growing segment of the population isn’t necessarily financially prepared to make the most of their tercera edad. Four out of five Latino households have less than $10,000 in retirement savings, according to a 2013 National Institute on Retirement Security report. Because of this retirement crisis, Grand, a new start-up, aims to give Latinos the knowledge, tools, and access to “rewrite the script” and improve their financial life on their own.
The idea behind Grand is to organically change the mindset Americans have toward finances from intimidation and negativity to positivity and reward. Once a customer has balances saved they can begin investing with one click. Users have the capability to build an emergency fund, invest for retirement, or a personal goal such as a wedding, a home or a new addition to the family.
Staff offers real-time recommendations for ways users can save money and improve their financial lives. This includes credit monitoring, life insurance and personal loans.
“Most people don’t have super personalized access or feel comfortable using financial services,” says co-founder and Filipina-American Nicole Reyes. “We aim to make this tool easy and comfortable to use regardless of their financial expertise.”
While the tool is geared toward the average American, communities of color, such as young Latinos, are of interest to the founders. It’s important to note that Latinos are often at a disadvantage when it comes to finances. The median white person has earned $2 million by the time they turn 61, meaning they’re able to save more than African Americans and Latinos who earn $1.5 million and $1 million, respectively.
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