the path to future financial empowerment.

The future is in your hands. In order to ensure your family's financial health for years to come, learn the basics of investing, apply technology, and engage in cooperative economics.

LET ME BE BLUNT. THE GREATEST PROBLEM FACING black America, bar none, is the wealth divide. Over the past three decades, it has been our view that building true multigenerational wealth--which must be defined by net worth, or assets minus liabilities--represents the completion of the third phase in African Americans' fight for independence and equality in this country. The first phase was our struggle to break free from the physical bondage of slavery. The second phase was gaining access to social, educational, and business institutions largely because of the efforts of Civil Rights leaders and influencers of government policy. The next battle is to vigorously apply individual wealth-building practices and develop a solid African American investor class. The objective: financial and economic empowerment.

Unlike the divides, digital or otherwise, the wealth gap is measurable. For example, at a time when the American economy appears to be propelled by jet fuel, African Americans are still lagging behind the rest of the nation. A recent study by the University of Michigan revealed that the net worth of the median black household decreased from $8,400 to $7,500 between 1994 and 1999, while at the same time the net worth of the median American household increased 9% to $50,500. Going forward, African Americans must realize that the decision to invest or save discretionary income vs. consume is "a zero-sum game," asserts John E. Williams, the chair of the department of economics and business at Morehouse College in Atlanta.

In recent years, African Americans have been largely locked out of the financial markets because of a mind-set. In the blackenterprise.com survey on financial health, the respondents that shunned the financial markets maintained that the reasons they didn't invest included not having enough knowledge, believing they didn't have enough money, or thinking they were going to lose their hard-earned dollars. In fact, many of the misers parked their bucks in savings accounts instead of the stock market, missing out on double-digit compound annual returns.

There's good news, though. Some African Americans are finding that prosperity will not come from a checkbook or a passbook They have decided to embrace the financial markets as a means of wealth accumulation. The recent Ariel-Schwab survey on African American investment patterns shows that the number of black investors has been on the rise: fully 64% of the African Americans surveyed actively invest in the stock market, up from 57% two years ago. There has been a dramatic forward movement as organizations from the Coalition of Black Investors to the National Urban League have been pushing blacks to embrace sound money management practices. Not to toot our own horn, but over the past 30 years BLACK ENTERPRISE has been the leader of this movement. And, to kick off the millennium, we developed the Black Wealth Initiative, our comprehensive financial education and empowerment program. The following five strategies outline how to achieve--and yes, even exceed--your financial goals for the next 30 years.

JOIN THE B.E. WEALTH INITIATIVE. With aging baby boomers investing for retirement and Generation X, quickly followed by Y, reaching the stock market will to boom.

African Americans cannot afford to sit on the sidelines as these developments unfold. Since January, BE has rolled out the Black Wealth Initiative, covering pages of this magazine and the gospel of financial empowerment on our Website and at conventions, churches, and meetings of fraternities and sororities. The centerpiece is the BE Declaration of Financial Empowerment, our 10-point program designed to give you the basics on managing money. Some key tenets: saving and investing 10% to 15% of your after-tax income as an ongoing process; engaging in sound budget, credit, and tax management practices to stay on course; and teaching business and financial principles to your children to give the next generation a head start.

Building wealth is a lifetime process and it begins with the basics. Cogitate on the following: if, on the day of your child's birth, you invested $1 a day in, say, a blue chip mutual fund that produced a 10% compound annual return, your child would have earned $1.9 million by the age of 65. Imagine the possibilities.

* EMBRACE ONLINE INVESTING. Increasingly, the influence of market activity will shift from institutions to individuals. Over the past decade, money inflows from 401(k)s have made a major impact on the financial markets. What will serve as the driver of market activity in future? Online investing. fact, experts believe the called "Connected Economy" will make the markets more efficient--there will be a more democratic flow of information, increased liquidity, and continuous adjustment of prices. We have already seen the tip of the iceberg with the Net. It has made transactions more affordable for the average investor. For example, investors have been able to execute trades for as little as $4.96, which would have cost them hundreds with a broker just a few short years ago. "To be a player in the financial markets, even on an individual basis, you are going to have to operate online," says Michael Manns, senior vice president and senior portfolio manager at American Express. "In the future, it will provide you with both speed and access."

* FOCUS ON TECHNOLOGY, HEALTHCARE, AND GLOBALIZATION. Yes, the tech sector will to be volatile, but it will economy--as will those companies involved in telecommunications, biotechnology, pharmaceuticals, and the global marketplace.

Technology will advance at a rapid pace. New drugs will be developed to treat--and--possibly cure--diseases such as AIDS, Parkinson's, and different forms of cancer. And new markets will flourish as evidenced by approval of the China, Caribbean and African trade agreements.

Look for the high-flying upstarts. You remember how investors cashed in on Net com late '90s? But your core stock portfolio should contain a mix of tried-and-true blue chips like IBM (NYSE: IBM), Microsoft (Nasdaq: MSFT), Pfizer (NYSE: PFE), and MCI WorldCom (Nasdaq: WCOM)--market leaders with the financial wherewithal and management expertise to take advantage of developments in the brave new world ahead.

* TREAT YOURSELF AS A VALUABLE COMMODITY. In the new book Future Wealth by Stan Davis and Christopher Meyer (Harvard Business School Press, $27.50), one forecast is that your labor and intellectual capital will be bankable and tradable in the future. You have only to look at entertainers such as James Brown and Ashford and Simpson, who securitized the royalties of their music by issuing bonds, or the Netpreneurs who leveraged their intellect into billion-dollar public offerings. Look for a future where employers will not only seek the resumes of talented employees and independent contractor, but also buy shares in them.

But you don't have to be so grandiose. As of Generation 1099, it will pay to market your skills outside of your 9-to-5. A simple fact of life is that to build wealth, you can't give everything to the company store. Use your skills set or special niche to supplement your income. Companies will continue to pay a pretty penny for excellence. To provide the additional funds that in turn, can be used for investing, use such low overhead activities as consulting, writing, making speeches, and selling your services through the Net (don't forget to register yourself as a domain name). Better yet, if a fledgling company seems like a candidate for the public market in the future, get compensated in stock options. Also, gain the tax advantages of incorporation.

Another tactic is to seek out novice entrepreneurs and make an investment in their talents and identify resources to help them grow their enterprises. You don't have to be a venture capitalist to get in on the ground floor of the next big thing.

* ENGAGE IN COOPERATIVE ECONOMICS AND COLLECTIVE WEALTH-BUILDING STRATEGIES. It's important to buy black but don't forget to invest black. Today, there are more black professional money managers than ever before. In fact, we unveiled a list of black asset managers in our June issue to track their explosive growth. And in the future, expect even more African Americans to participate in every nook and cranny of the financial marketplace. Asserted Ted Shaw, associate director-counsel of the NAACP Legal Defense Fund on a BE panel on affirmative action: "We have talked about the death of affirmative action. but African Americans haven't fully exploited the home front. We need to use the services of other black business and professionals."

In fact, the BE Board of Economists have started that the dollar in the black community "does not turn over once as compared to other ethnic communities." That means that African Americans are not effectively leveraging the $500 billion plus total money income. So, as you invest your hard-earned dollars and seek professional expertise, tap the top black accountants, tax attorneys, and investment advisors. Also, look at viable, publicly owned black businesses and mutual funds, which have outperformed the market and companies within their sectors, as part of your asset mix.

In keeping with this cooperative thrust, form investment clubs or participate in those connected to your employee association, social or professional organization, or church. For example, churches such as New York's Allen AME have set up scores of investment ministries that have invested in equities and have produced better returns than some growth-stock mutual funds. The benefit: members are generating money for their families and their community at the same time. Others have used such vehicles to fund businesses and support nonprofits as well. As government funds for small businesses and community development continue to be scarce, it will be up to African Americans to use such methods to shore up our communities.

Moreover, investing will be used to propel our diversity agenda as well. Jesse Jackson's Wall Street Project and the NAACP's economic reciprocity campaigns have gained leverage by having members buy shares in targeted companies. For example, NAACP CEO Kweisi Mfume bought shares of News Corp., Time Warner, Disney, CBS, and General Electric when he pushed for diversity in network television programming. By doing so, he was able to obtain internal documents on the companies' hiring practices and be heard at shareholders' meetings. The result: the networks began to diversify their programs.

The main objective of building wealth is to provide options for you and your family--to own property, to secure a quality education for your children, to build viable black-owned and to create lasting institutions. In the 21st century, African Americans should seek full access and participation in the American Dream. We are deserving of nothing less.

busta rhymes

hip-hop artist and entrepreneur on money management, gen x-style

I THINK OUR GENERATION IS A LOT MORE FINACIALLY SAVVY NOW THAN A COUPLE OF YEARS AGO. YOU'VE GOT A LOT MORE YOUNG people doing their thing. It's the standard today to be accepted as cool. You've got to have a little floss to you, a little something that represents that you're making some type of money for yourself.

There are a few things anyone can do to start saving and investing for the future. If you do have a little money, maybe as a gift or from an inheritance, you need to immediately look into buying some property in an area that will maintain the value of that property. Pay off the mortgage at one time, pay it off over time, or rent it out so that it pays for itself. Even if you only have $2,000, invest at least half of it in some kind of stock. You'd be surprised how $1.000 can turn into $10,000 in no time, depending on which stock you invest in. If we young people would just take time to investigate the things that could get us the dough the same way we investigate where all of the hottest functions are, we'd be so much more paid than we are. Even though we're doing our thing, we'd be doing it so much more financially if we just took more time to research these averages

I own a couple of homes. I invest in diamonds. Not necessarily the jewelry you floss, but as collateral for other things later on. Their price is pretty stable and they keep their value. I invest in stocks and all of that. And when it comes to my money, I don't like losing. I love to know and account for everything that I've earned, because it's not easy making the loot. I don't like coming around weeks after I get a check to find out there's only 15% of the check left because it went to mad bills, and crazy this and crazy that. My bottom line on personal money management is that no one manages your money better than you. It's cool to have assistance, but you want to be the one who primarily handles your finances. Because at the end of the day, if something isn't right, you really can't blame anyone but yourself.

Busta Rhymes, a.k.a. Trevor Smith, is one of the most innovative, and prolific lyricists in the hip-hop world. Having first entered the rap game in 1990 at age 17 as a member of Leaders of the New School. Busta's lyrical skills have earned him the respect of fans and critics alike, and have paved the way for acting roles in such movies as the new Shaft. As the head of Flipmode Entertainment and the creator of the clothing line Bushi, he also has ownership stake in the business of entertainment.

c. kim goodwin

senior portfolio manager, american century growth fund on investing and taking risk to build wealth

I BELIEVE WE ARE GOING TO CONTINUE TO SEE positive developments in the equity market. Because of demographic trends. I believe the market will accelerate to at least a 15% return on an annual basis over the next decade. We will continue to see more and more individuals take control of their financial future. Just a few years ago, the employer invested on the behalf of the employee, and that investment was the employers company stock; 401(k) programs and similar vehicles will give individuals more investment options today and in the future,

I can't tell you how many times I meet professionals who tell me that they finally get it: I have to get my money to work for me." They have good jobs, work hard, and provide for their families. If they don't invest, they won't have a chance to build wealth. But many African Americans are still conservative and place their hard-earned dollars in a CD earning 5%. Or some will save. then take those dollars and spend them on a big vacation or more expensive car. When we consider purchases, we should look at what the value of those dollars will be five years from now.

You will have to be willing to take risks, and yes, buying stocks requires taking a risk. I believe in taking risks and remain bullish on the equity markets. In fact, I'm 100% invested in equities, If African Americans seek the means of building multigeneraional wealth over the next 30 years, we will have to take some of our dollars and place them in investments. Taking that risk will enable us to provide a higher platform for our children, whether it is giving them the resources to gain education at the best institutions or having the funds to start their own business. We can't pass on our jobs, but we can pass on our wealth.

C. Kim Goodwill is a senior vice president and senior portfolio manager at America Century Investments. Under tier stewardship, the fund has added $4.5 billion in assets to total $10 billion and now has a five-star rating in Morningstar for the three-year period. Goodwin received her under-graduate degree, cum laude, in politics from Princeton University. She also holds a master's degree in public affairs, and an M.B.A. in finance from The University of Texas at Austin.

jesse jackson

founder and president rainbow/push coalition on building wealth

ON BLACK SPENDING POWER 

IT'S SIGNIFICANT. PRESIDENT CLINTON HAS ESTABLISHED HIS New Markets Initiative because he realizes that we are not reaching America's underserved communities. I've traveled with him from New York to Detroit to Appalachia to Silicon Valley to push this initiative. There is a wealth of underutilized people and talent available. Minorities spend an estimated $800 billion each year. They spend more, and are closer than most developed markets in the world, yet they are largely ignored.

ON ECONOMIC INEQUALITY

Just a few miles from Silicon Valley, students in some schools don't even have working computers. Harlem is on the same island as Wall Street, yet there is not one car dealership in the neighborhood. It took many years to get a major supermarket in Harlem, and many other services are still not easily available. A whole community has been redlined, kept from economic access. Its residents represent an underserved, unwired community with underutilized talent.

ON CREATING OPPORTUNITY

We've [Rainbow/PUSH] started with 1,000 churches, teaching the memberships about the science of the marketplace. We're teaching them its language. We're showing them how to buy stock, and we're hoping they will convince other members to buy stock. Our goal is not just to spend money on products, but to benefit from corporate growth. We want to be Coke shareholders, GM shareholders. When we do so when we participate in shareholders' meetings, we will help end patterns of racial exclusion in the financial industry.

The Rev. Jesse Jackson served as national director of Operation Breadbasket, the economic wing of the Southern Christian Leadership Conference. He ran for president of the United States in 1984 and 1988, and is the founder of the Rainbow/PUSH Coalition's Wall Street Project and La Salle Street Project.