Building Wealth: 6 Strategies for Black HENRYs

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This year marks the 100th anniversary of celebrating Black history. And baby, there’s a lot to be proud of, including our perseverance.

We’re not stopping there. We want more for ourselves and our families.

I asked members of BW’s Black Nerds Network employee resource group what they’d ask a financial planner.



“How should I manage a 529?”

“Advice on building generational wealth?”

“What about caring for aging parents?”

But the question that got the biggest reaction was “How do I get to the bag💰?”

So I talked to Black CFPs and found some answers.

You’re contributing enough to your 401(k) to get your employer match. Maybe you’re even maxing out your 401(k).

You don’t have high-interest debt, or you’re working on a strategy to pay it off.

What’s next?

“You can max out two retirement plans at the same time,” he says. “You can stash a lot.”

“Sometimes people will come to me and they say, ‘Well, I have all these student loans. Should I just put all of my money towards the student loans and not put any money into savings or investments or retirement?’” says Adrienne Davis, a Bowie, Maryland-based CFP for Zenith Wealth Partners.

“And that’s when I say, ‘Absolutely not.’ We want to make sure that we are still preparing for the future.”

Lazetta Rainey Braxton, a CFP based in New Haven, Connecticut, says prepping for the future means diversifying your investment vehicles.



“I really want all of my HENRYs to have a taxable brokerage account,” says Braxton, founder of The Real Wealth Coterie.

Investing in the stock market through a brokerage account is something too many people shy away from, Johnson says. Social media influencers have made it seem like getting rich can be fast and easy, he says. But securing the big bag is usually a long game.

“The majority of the wealth has been built through generations,” he says. “It takes time.”

“If you want to have property, that’s a good way to pass on wealth,” says Naima Bush, a Northern Virginia-based CFP and chartered financial consultant for Fruitful Advisory.

Say you get a raise or bonus. You’re eyeing a new luxury car. Do you want the $1,500-a-month car note that goes with it? That’s money that could be invested, Davis says.

Even small things bought regularly can add up. You might love that $45 Fenty Beauty body butter, Bush says. But do you really need it?

“It’s okay to have the Trader Joe’s or the lower-cost brand,” she says.

“The easiest way to avoid lifestyle creep is to allow a little bit of lifestyle to creep,” he says.

Most of the CFPs I talked to, like me, didn’t learn much about money growing up.

And many HENRYs, especially Black HENRYs, are first-generation wealth builders, Bush says.

One of the challenges of managing wealth is the pressure to support family members financially. Many financial planners recommend setting boundaries when it comes to helping relatives. Establishing a specific amount for giving can help prevent overspending, according to Davis. Johnson acknowledges that while setting boundaries may seem simple, maintaining them can be difficult.

Despite the importance of prioritizing oneself, many individuals, including financial experts like Johnson, find it hard to put their needs first when it comes to assisting family members. Some high-earning individuals, like Braxton’s clients, choose to live frugally in order to provide long-term care for aging parents. It is essential to be honest with yourself and your financial advisor about your priorities and spending habits.

Braxton emphasizes the significance of estate planning in wealth management. She recommends having a will and designated beneficiaries for all assets. Additionally, she believes that passing down financial knowledge to heirs is crucial to preserving wealth. Johnson warns that without proper financial education, inherited wealth can easily be squandered.

Both Braxton and Johnson stress the importance of teaching children about financial literacy from a young age. Braxton took proactive steps by opening a 529 account for her daughter when she was born, gradually expanding her investment portfolio as she grew older. She hopes to see more Black children have access to various financial accounts and tools to secure their financial future.