Linda García, author of “Wealth Warrior: 8 Steps for Communities of Color to Conquer the Stock Market,” shared a beginner-friendly breakdown of how to conquer the stock market exclusively with the Amigahood™. Millionaires are made during recessions, so this is your chance to start investing.

Financial literacy and wealth building can be a sore topic for our comunidad. Many of us did not grow up learning how to build generational wealth and often carry money wounds. We must learn how to preserve the money coming in and grow it. According to the author of Wealth Warrior: 8 Steps for Communities of Color to Conquer The Stock Market, Linda García, investing in the stock market is one of three ways to build generational wealth. She led an exclusive Amigahood™ event and explained how the stock market works and why it’s important the Latine community participate and benefit from it. Amiga, it’s time to rewrite your money story and step into your abundance, so transmute your fear of the stock market by learning how it all works. We’ve gathered some key messages from her conversation, so you can get started!

Watch the replay here!

Advantages of investing in the stock market

While initially stepping into the stock market world might feel intimidating, Linda García reminds us why pushing through the discomfort is worth it. Here are five advantages to investing in the stock market:

1. Liquidity – This means you have access to your assets almost immediately. For example, if you have a home, you have to put the house for sale and wait until you have a buyer. With stocks, you can obtain your funds immediately.
2. Dividend income – This means you can buy shares from a publicly traded company like Apple or Amazon. Any profit the publicly traded company makes can then be paid out to you as dividend income.
3. Voting privileges – The actual owners are the people who are investing in a company. When a company is working towards increasing its business, its investors are at the top of their minds. The investors are holding the people who run the business accountable. Imagine a space where there are more people of color and companies have to be accountable towards us and what our views are aligned with. We belong in those spaces.
4. Capital gains are taxed lower than your employment tax – This means any profit you make from selling stocks can be taxed at a 0-20% range.

Why we need more Latinas investing in stocks

Despite being encouraged to advocate for higher wages, Latinas are paid 54 cents on the dollar. To put it into perspective, Latinas, on average, must work nearly 22 months to earn what white, non-Hispanic men earn in 12 months. 

“We fight every year to try and change the narrative. But at the end of the day, studies show that when women face these roadblocks and try to bring up higher wages, they are less likely to receive a raise than men,” said García.

So why aren’t more women investing? Often the reason is fear and the need for more confidence. 56% of millennial women say fear holds them back from investing, and education is the antidote to this fear. 

“By educating ourselves and truly taking time to understand the ins and outs of the stock market, we will begin to heal our money wounds and create generational wealth,” said García. 

“Coupled with our efforts of encouraging women in positions where we have the power to distribute higher wages, we also need to understand these other spaces in this system that can start building us generational wealth. We do not need to be dependent on our jobs to do what is right beside us.”

Should I invest during a recession?

Most people perceive the recession negatively, but recessions have made more millionaires and successful companies than at any other period.

“A recession is going to push us into changing how the system is currently working. During periods like these, we experience creative destruction,” said García.

“We are already consumers of big companies. It is time for us also to participate and become direct owners of these companies, so we can start building generational wealth through time.”

– Linda García

Let’s break down what a recession is exactly. A recession is when GDP declines for two consecutive quarters. According to García, now is an opportune moment to start investing. The current recession has resulted in a bear market, which is a market decline of 20% or more. Stocks are, therefore, less expensive and essentially “on sale,” making it an excellent opportunity to start investing.

“We are already consumers of big companies. It is time for us also to participate and become direct owners of these companies, so we can start building generational wealth through time,” said Garcia.

“Rather than seeing the recession in a negative light, it’s important to remember that when something recedes, it gives us an opportunity for us to expand.”

How to get started investing

Do you feel empowered to start investing yet? Garcia breaks down simple steps to get started. Remember, we are not financial experts at #WeAllGrow, so be sure to find a professional in your area before taking action.

1. Verify who your broker is and whether you have a 401k or an IRA.
2. Open a brokerage account.
3. Find stocks that you and your circle understand. Only invest in what you understand. 
4. Select three stocks and do deep research on them.
5. Be a responsible owner – pay attention to quarterly earnings and keep up with company headlines.
6. Let the stock market be your master teacher – learn from the process.

If you want to learn more about investing in stocks, be sure to order Linda García’s book, Wealth Warrior: 8 Steps for Communities of Color to Conquer The Stock Market.

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