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The LGBTQ generational wealth gap

Family rejection, inheritance exclusion contribute to problems

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It’s no secret that LGBTQ+ people face a range of financial challenges that heterosexual people simply don’t need to contend with. Less discussed are the effects of financial discrimination on building LGBTQ+ generational wealth. The stereotypical view of a wealthy gay couple with no children and a sizable disposable income is just that — a stereotype. 

In reality, the “American Dream”— buying a home, getting married, having kids, finding a good job and investing in a 401(k) — is out of reach for many LGBTQ+ people, according to a survey by TD Ameritrade. Almost two thirds (35 percent) of LGBTQ+ millennials say they are unlikely to achieve these goals by age 40, compared to fewer than half of straight millennials. The same survey found that while the average annual income for a straight household is $79,400, the average LGBTQ+ household earns just $66,200 a year.

LGBTQ+ people are being left out of generational wealth for many reasons including family rejection, systematic barriers and a lack of financial education. With almost half of LGBTQ+ adults saying they have been excluded by a family member or close friend as a result of their sexual orientation or gender identity, according to a study by the Pew Research Center, a lack of familial financial support is a common problem for many in the community. 

This combination of unique financial barriers that LGBTQ+ people face is what has led to generational wealth gap. It’s a problem that will only affect more queer people if we don’t address it now. 

Legacy financial exclusion

At every stage of life, it’s not uncommon for LGBTQ+ people to encounter financial challenges that their heterosexual counterparts won’t face. Being kicked out of their homes as teens due to unaccepting parents, not receiving financial support from family for college, being removed from an inheritance — the financial cost of being LGBTQ+ can be substantial.

With the average inheritance reaching close to $177,000 according to a HSBC survey and Cerulli Associates forecasting that up to $68 trillion will trickle down to younger generations within 25 years, LGBTQ+ heirs could collectively lose trillions through inheritance exclusion. 

“Even much smaller amounts could help folks pay off debt, pay off a home, send their own kids to college and help them with their own retirement. Many LGBTQ+ kids aren’t getting these benefits,” explains John Auten-Schneider. Auten-Schneider is the co-owner of The Debt Free Guys blog and host of the Queer Money podcast, a leading gay money blog and podcast for the LGBTQ+ community run by him and his husband, David.

Raising a deposit for a house or apartment can be a difficult task for all people, but without financial support from family, many would not be able to fund a deposit. When David’s parents pass away, David’s sister will likely be inheriting upwards of $1,000,000. Yet, David says, he won’t receive any of this money, solely because he’s gay. “His parents have every right to do with their money what they want, but it’s a particular disappointment that they’ll do this only because he’s gay. This, of course, means we need to plan differently for our retirement than his sister does,” explains John. 

Just because David and John are LGBTQ+ financial experts doesn’t mean they don’t deal with many of the same systematic challenges that impact other members of the community. Younger LGBTQ+ people also face challenges directly related to their sexuality or gender identity.

A disproportionately high number of young people experiencing homelessness identify as members of the LGBTQ+ community. According to research from the Williams Institute, between 20 percent and 45 percent of homeless youth identify as LGBTQ+. Lacking access to basic housing or financial support from family can set up a young person up for economic disadvantage before they even graduate from high school.

LGBTQ+ students also shoulder a larger student debt burden than their straight peers to the tune of an extra $16,000. “This has been attributed, in part, to LGBTQ+ college students assuming more debt simply to leave hostile home lives. In some cases, parents may forgo helping their queer children in favor of helping their straight children,” explains John.

Knowledge is power

At the start of 2020, Michigan-based Lexa VanDamme was at her financial rock bottom. Stuck at work after a 70-plus hour work week with no money in her bank account, bills due the next day and a broken down car, she decided to make a change. “I realized that I needed to face my financial situation,” says VanDamme. “I dove deep into the online world of personal finance to learn about budgeting, debt payoff methods, saving and investing.”

After her crash course in finance, VanDamme refinanced her credit card debt into a lower-rate personal loan, created a workable budget and started a side hustle to make extra income. There were a few bumps on her journey: “I actually cycled back into credit card debt three different times. I would pay it off, then eventually max it out a few months later,” says VanDamme. Still, she managed to pay off her debt by following the financial rules she had set for herself.

While trying to learn about personal finance on her own, VanDamme realized there was a need for accessible and relatable content that appealed to a wide range of people. She decided to create The Avocado Toast Budget (The ATB). Starting out as a blog just over a year ago, The ATB now counts more than 400,000 followers on Tiktok.

“For the longest time, the loudest voices in the personal finance community were cis, straight white males and, as a queer woman, I wanted to share information and tips that were often overlooked by those creators,” says VanDamme.

For many LGBTQ+ people like VanDamme, after spending so long hiding who she really was, she wanted to live as true to herself and be as free as possible. “This led to me ignoring my spending habits and being stuck in the paycheck-to-paycheck cycle. Airing my financial dirty laundry brought up similar feelings of anxiety and concern I felt when first coming out. How would people react? What would they think?” says VanDamme.

There is already a heavy stigma around talking about personal finances, especially when you may be struggling financially. “Since queer people often spend our lives fighting for the world to accept us and our queerness, we may be less apt to talk about our financial insecurities and struggles,” says VanDamme.

Genuine representation goes beyond just diversifying the financial content creators who receive media platforms, with the advice given by these experts also needing to be fully inclusive. “Advice tended to ignore how systems of oppression affect people of color, women, the LGBTQ+ community and more. We know statistically that it’s easier for some to build wealth than others,” she adds.

VanDamme has an ongoing series on Instagram focused on the intersectional nature of many financial issues. The series helps shed some light on the economic realities that often contributes to minority community challenges. From financial inequality that disproportionately impacts disabled people to wealth inequity and racism and the cycle of poverty, VanDamme works to educate her audience on pressing topics that matter to them.

 “It’s especially important to talk about the financial challenges that trans people in our community face. This includes increased reports of lower wages, limited and more expensive housing options, and twice the rate of unemployment. This heavily impacts their ability to build wealth,” she explains.

Intersectional challenges

While being LGBTQ+ can underpin unique money issues, queer people of color and queer women often experience additional difficulties around financial matters.

In addition to the financial barriers faced by LGBTQ+ people, queer people of color also face a racial wealth gap. Employment discrimination, systematic inequalities and disparities in financial education all contribute to this unequal financial playing field.

According to research from the Federal Reserve, the average white family’s wealth is eight times higher than the wealth of an average Black family. The gender pay gap also contributes to excluding women from building generational wealth, according to the latest statistics compiled by Pew Research, which show that women earned 84 percent of what men earned in 2020.

Carmen Perez, creator of Make Real Cents, a personal finance blog dedicated to helping people achieve financial independence, believes it’s important to have experts who are more representative of the people they’re speaking to. “I heard a quote a while ago: ‘You can’t be what you can’t see.’ I think that’s really important because eventually, if you don’t have a model to follow, either you have to be the first, or it’s never going to happen,” she says.

As a woman of color and a lesbian, Perez knows firsthand how important it is to address the absence of representation in financial education. “It’s definitely one of the things we have to step back and look at in the LGBT community,” says Perez. “There’s a compounding effect because not only am I part of the LGBT community as a lesbian, but I’m also a minority, and I’m also a woman, and there’s a lot of hurdles up against a lot of folks in this space,” she adds.

With more than 60,000 people following her Make Real Cents account, Perez is playing a part in democratizing access to finance. There, she does everything from break down the cost of credit to explain 401(k) company matches with easy-to-read graphics and Insta stories. Her methods are a world away from the complexity of some traditional financial advisors and tools.  

“Millennials are starting to change the money game because we’re delivering advice in a way that isn’t super technical. It can be so overwhelming to watch CNBC with all these screens and tickers that don’t mean anything to you personally,” says Perez.

Increased representation in the finance space means a light can be shone on vital issues, resulting in deeper conversations that make money less taboo. “We’re finding instances where historically people who have been locked out of the finance industry, by design, are speaking up. Unlike some traditional financial advisors that give out all this jargon and talk in all these terms that many may not understand,” says Perez.

Future generations

Despite the long-standing barriers facing LGBTQ+ people in gaining access to financial education and financial services, LGBTQ+ personal finance content creators now offer a way for many to improve their financial literacy in more convenient ways than ever before. While investing early and regularly is one of the most effective ways to secure a financially comfortable retirement, it’s never too late to build wealth and support for the next generation of LGBTQ+ people.

“[You can] create legacy wealth within the LGBTQ+ community by setting up your estate plan to donate to LGBTQ+ causes that will help homeless youth and [by] giving to local, younger LGBTQ+ folks you know personally,” adds John.

Negotiating the LGBTQ+ generational wealth gap is no small feat. But continuing the discussion around both financial literacy and taking steps to combat systematic financial issues can go a long way to address the financial challenges impacting the LGBTQ+ community.

“The stronger we are as LGBTQ+ individuals and allies, including our financial strength, the stronger we are as a community,” concludes John.

Finbarr Toesland is an award-winning journalist committed to illuminating vital LGBTQ+ stories and underreported issues. His journalism has been published by NBC News, BBC, Reuters, VICE, HuffPost, and The Telegraph.

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Autos

Sport haulers: Jeep Grand Cherokee, Mercedes GLE-Class

Updated cabins, adept handling, and more

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Jeep Grand Cherokee

Now that March Madness and the Masters are over, it’s time for, well, everything else. For my husband and me, this means water sports, as in kayaks and rowing sculls, which is why we trekked to the Potomac for the George Washington Invitational regatta last weekend. 

Alas, high winds splashed cold water on the event, canceling much of it. But there was still plenty of spirited camaraderie to rival “The Boys in the Boat.” 

And I was reminded of my time years ago as a rower with D.C. Strokes, ferrying teammates to races up and down the East Coast. Back then my ride was a dated, rather cramped four-door sedan. 

If only we could have paddled around in a sporty SUV like the two reviewed here. Now that would have been some smooth sailing (wink-wink). 

JEEP GRAND CHEROKEE 

$40,000

MPG: 19 city/26 highway

0 to 60 mph: 7.5 seconds

Maximum cargo room: 37.7 cu. ft. 

PROS: Updated cabin, adept handling, strong towing 

CONS: So-so gas mileage, no third row, pricey trim levels

IN A NUTSHELL: Rough, tough and buff. It’s doesn’t get much more butch than a Jeep. This year’s Grand Cherokee is no exception, with rugged looks, expert off-road capability and better-than-average towing capacity of 6,200 pounds. 

There are a dizzying number of trim levels—more than a dozen—starting with the barebones base-model Laredo at an affordable $40,000. The lineup tops out with the Summit Reserve 4xe PHEV, which is almost twice the price at $76,000 and one of various plug-in hybrid versions available. Those plug-in hybrids can drive up to 25 miles on all-electric power before the four-cylinder gas engine kicks in. Otherwise, you can choose from a standard V6 or V8. Gas mileage on all trim levels is basically the same as the competition. 

Where the Grand Cherokee really shines is in the handling. More refined than a Wrangler but less lavish than a Land Rover, this Jeep maneuvers just as well on city streets and highways as it does on bumpier terrain.    

I tested the mid-range and mid-priced Overland, which comes standard with four-wheel drive and large 20-inch wheels. It also boasts a slew of niceties, such as quilted upholstery, panoramic sunroof and high-tech digital displays. These include a 10.25-inch infotainment touchscreen and rear-seat entertainment system. 

The nine-speaker Alpine stereo, designed specifically for the Grand Cherokee, is pleasing. But I really wanted to hear the boffo 19-speaker McIntosh surround-sound system that Jeep also offers. Sigh, it’s only available on the premium Summit trim level. 

MERCEDES GLE-CLASS

$64,000 

MPG: 20 city/25 highway

0 to 60 mph: 6.6 seconds

Maximum cargo room: 33.3 cu. ft. 

PROS: Lush interior, silky-smooth suspension, speedy 

CONS: Some confusing electronics, tight third row, many competitors

IN A NUTSHELL: For a more high-class hauler, there’s the Mercedes GLE-Class. This midsize SUV is similar in size to the Jeep Grand Cherokee. But instead of seating five passengers, the GLE can carry up to seven. Sure, legroom in the optional third row may be tight for taller travelers, but it’s perfect for a cocky cockswain or two. 

Six trim levels, ranging from the base-model GLE 350 to two high-performance AMG models. For eco-conscious buyers, the GLE 450e plug-in hybrid arrived earlier this year and can run on battery power alone for almost 60 miles. 

My test car was the top-of-the-line AMG 63 S 4Matic, a head-turner in every way. Priced at a whopping $127,000, this GLE looks best in glossy black with the Night Package, which includes tasteful jet-black exterior accents and matte-black wheels. To complete the Darth Vader effect, there’s a deep, menacing exhaust rumble that’s downright threatening.

You expect such a ride to be wicked fast, and it is: 0 to 60 mph in a blistering 3.7 seconds. Yet the carbon ceramic brakes with their devil-red calipers are equally impressive in slowing things down quickly. 

Inside, each GLE comes with two large digital displays on the elegantly sculpted dashboard. My favorite feature is the “Hey Mercedes” digital assistant, which responds to voice commands such as opening or closing the sunroof, operating the infotainment system or activating the climate controls. 

It’s hard to find sport seats that are more comfortable, especially with the heavenly massage function (though those massage controls could be a bit more user-friendly.) For AMG models, the seats come with red-contrasting stitching and red seatbelts—a nod to the devilish demeanor under the hood.

Considering all the SUVs available in showrooms, few make quite the splash of a GLE.

Mercedes GLE-Class
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Real Estate

Boosting your rental property’s curb appeal

Affordable upgrades to attract and keep tenants happy

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Spruce up your curb appeal with new plants and trees.

In the District of Columbia, the rental market tends to open up significantly during the springtime for several reasons. First, spring brings about a sense of renewal and change, prompting many individuals and families to seek new living arrangements or embark on relocations. Additionally, the warmer weather and longer daylight hours make it more conducive for people to explore housing options, attend viewings, and make decisions about moving. Furthermore, spring often coincides with the end of academic terms, leading to an influx of students and young professionals entering the rental market. 

Landlords and property managers also tend to schedule lease renewals or list new vacancies during this time, capitalizing on the increased demand and ensuring a steady turnover of tenants. In the competitive world of rental properties, attracting and retaining quality tenants can be challenging. However, with some strategic upgrades, property owners can significantly enhance their units’ appeal without breaking the bank. From enhancing curb appeal to interior upgrades, here are some practical and cost-effective ideas to make your rental property stand out in the market.

Curb appeal

First impressions matter, and curb appeal plays a crucial role in attracting potential tenants. Simple enhancements like freshening up the exterior paint, adding potted plants or flowers, and ensuring a well-maintained lawn can instantly elevate the property’s appearance. Installing outdoor lighting not only adds charm but also enhances safety and security.

Interior upgrades

Upgrade the kitchen and bathroom fixtures to modern, energy-efficient options. Consider replacing outdated appliances with newer models, which not only appeal to tenants but also contribute to energy savings. Fresh paint and updated flooring can transform the look of a space without a hefty investment. Additionally, replacing worn-out carpets with hardwood or laminate flooring can make the unit more attractive and easier to maintain.

Enhance storage

Maximize storage options by installing built-in shelves, cabinets, or closet organizers. Tenants appreciate ample storage space to keep their belongings organized, contributing to a clutter-free living environment.

Improve lighting

Brighten up the interiors by adding more lighting fixtures or replacing old bulbs with energy-efficient LED lights. Well-lit spaces appear more inviting and spacious, enhancing the overall ambiance of the rental unit.

Upgrade window treatments

Replace outdated curtains or blinds with modern window treatments that allow natural light to filter in while offering privacy. Opt for neutral colors and versatile styles that appeal to a wide range of tastes.

Focus on security

Invest in security features such as deadbolts, window locks, and a reliable alarm system to ensure the safety of your tenants. Feeling secure in their home is a top priority for renters, and these upgrades can provide meaningful, genuine peace of mind.

Enhance outdoor spaces

If your rental property includes outdoor areas like a patio or balcony, consider sprucing them up with comfortable seating, outdoor rugs, and potted plants. Creating inviting outdoor spaces expands the living area and adds value to the rental property.

As landlords, investing in the enhancement of your rental properties is not merely about improving aesthetics; it’s about investing in the satisfaction and well-being of your tenants, and ultimately, in the success of your investment. By implementing these practical and affordable upgrades, you’re not only increasing the desirability of your units but also demonstrating your commitment to providing a high-quality living experience. 

These efforts translate into higher tenant retention rates, reduced vacancy periods, and ultimately, a healthier bottom line. Moreover, by prioritizing the comfort, safety, and happiness of your tenants, you’re fostering a sense of community and trust that can lead to long-term relationships and positive referrals. So, let’s embark on this journey of transformation together, turning rental properties into cherished homes and landlords into valued partners in creating exceptional living spaces.

Scott Bloom is owner and Senior Property Manager of Columbia Property Management. For more information and resources, visit ColumbiaPM.com.

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Real Estate

Real estate agents work hard for that commission

Despite recent headlines, buyers and sellers benefit from our expertise

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Realtors work hard for that rare six percent commission.

With there being a lot of noise in the media lately as I am sure you have read and heard headlines like “Gone are the days of the 6% commission” and “End of the good days of Realtors,” etc., I wanted to re-run a very short article of the long laundry list of things that well versed real estate agents bring to the table to earn that seldom 6% commission. It’s typically split in half and it has always been negotiable).

As a real estate professional you will go on listing appointments and buyer meetings to not only attempt to gain business but in doing so you also educate the general public on what it is that we as real estate professionals do. I know what you’re thinking – and if you’ve seen my photo before you wouldn’t be wrong to assume that I am cast in “Selling DC” as the lead villain. I am just waiting for that phone call! But in all seriousness, when I sit down to come up with a list of things to prove to prospective clients the value in working with me as their real estate professional, I am pretty blown away at the items and qualities that a trusted professional representing you in a real estate transaction is responsible for managing a myriad of tasks, including but not limiting to the following:

• Have a pulse on the marketplace to truly understand exactly what is happening from a buying and selling standpoint while also understanding the economic side of things – not just looking at interest rates. Why are rates where they are? What employers are laying off and could cause an influx of inventory? What are the trends for individuals moving IN or OUT of an area looking like? Forecasting the marketplace of all things that truly affect real estate is vital.

• Soft Skills – these are the skills often considered as customer service skills. The ability to be approachable by all types of people and ensure that you are open to receive information. Also – when telling you bad news – it’s important to ensure that it is done in a manner in which you, the receiver, will be pleasantly receptive.

• Pre-market vendors – not only are real estate professionals expected to market your home for sale or locate a home for you to purchase, we are also expected to have a list of pre-market vendors to which you can use for your lending needs, home inspection, title work, any fluffing and buffing needed pre market for the sale of your home such as a contractor, painter, landscaper etc. We have a book of extremely well vetted vendors that either I personally have used or past clients have used that can assist with your needs. This beats Googling for hours and accidentally choosing the wrong contractor. Section A of the pre-market vendor list includes those in which we real estate professionals use for marketing materials for your property – we will use the best photographers, have floor plans drawn for your property, video, staging, catering for brokers opens and the list goes on. Again – this is a well vetted list that we have worked on for years and done all of the heavy lifting and had those uncomfortable conversations when things are not properly executed – so you don’t have to.

• On Market Tasks – these are the tasks that most clients are unaware that we do. Oftentimes when a listing is on market – folks think that I am just cruising around in my convertible buying nice things. However I am in fact going around checking each listing on market to ensure that they are clean, the booties are replaced, marketing materials are stocked, light bulbs are all working, staging looks crisp and the list truly goes on. That of course, doesn’t include the tasks we do to properly market the property such as weekly email blasts, reaching out several times to follow up with showing agents to get their feedback, check the market to see what our competition looks like, what’s under contract and why, and again…..I could go on. Needless to say the most important and time consuming tasks are those that are done when the property is on market.

• “Contract to close” management – the term contract to close is pretty much what it sounds like – it’s what happens from the time we go under contract until we reach the closing finish line and you have those keys. Once a trusted real estate professional has fiercely negotiated on your behalf as a buyer, the fun starts. Again pops up this vendor list – helping guide you though selection of a home inspector, termite inspector, etc. for the inspections. A title attorney is needed (depending on your jurisdiction) and any other vendors for quotes like renovations, etc., that you might want done to the property. Once the inspection is completed and we go through possible re-negotiations then we must ensure that the lender has the documents needed from you completed in order to have the appraisal done to prove the value of the home you are under contract for. Now we are getting into the weeds – but once we are on the other side of things and the appraisal comes back at value and the loan is clear to close then we are at the finish line to your new home.

A similar story can be told if you are selling your home. The appraisal is a very important part of the checklist as that is the value in which your home is worth. The appraiser is a third party that neither the buyer, seller, lender or myself have any allegiance to. I do, however, have the duty to educate said appraiser on why I chose the listing price and how I came up with that value. 

• Post-market vendors. As mentioned before, a real estate professional should have a book of well vetted vendors from which to choose. Looking at the list of vendors now that we are on the other side of the table – I can provide a cleaning person, HVAC contractor, someone to repair the sprinkler system, a dog walker, the best caterers and bakery in town. Further down the road I am able to provide a wonderful wealth manager who can tell you what to do with that piece of real estate you purchased some time ago and we could go on for days.

While you are fully entitled to not use a real estate agent during your real estate transaction, I do believe that it is well within the realm of possibilities to say that without one there would be loose ends not completely tied up, things mismanaged and possible delays that could cost real cash. All of that aside, it is also such a truly wonderful experience to work alongside a trusted professional that at the end of the transaction becomes a new friend and family member. Real estate professionals love what they do, they love real estate and people and sheepherding you through the home buying or selling process is what it’s all about to us.

Justin Noble is a Realtor with Sotheby’s international Realty licensed in D.C., Maryland, and Delaware for your DMV and Delaware Beach needs. Specializing in first-time homebuyers, development and new construction as well as estate sales, Justin is a well-versed agent, highly regarded, and provides white glove service at every price point. Reach him at 202-503-4243,  [email protected] or BurnsandNoble.com.

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