by Olga Camargo & Juan C. Avila
The most recent financial crisis brought tremendous economic pain to our community. The engine of our nation’s job creation, the business community, was brought to its knees and the chain of events that followed left people without jobs and some without homes. The scars in our community are still fresh with empty iconic buildings in Little Village on 26th Street constant reminders of the economic devastation suffered. While we are in the midst of an economic recovery, we must embrace and act on the most important lesson taught by the economic crisis: the crucial need for financial literacy, in order to begin rebuilding wealth.
This lesson is of particular relevance to Latino business owners who are at the center of our community’s economic growth and who not only bring innovation to the marketplace but also lead their employees. We’ve learned through our work with business clients that they take this lesson to heart. They’ve also expressed that they need access to the right financial information. With that premise in mind, we decided to write this column, which will cover topics ranging from basic financial information, to investing, to retirement, to best practices being carried out by employers to attract and retain talent. We will share objective information that will enable business owners to make better-informed financial decisions to better weather future economic storms.
In 2011 a Forbes article entitled, “Latino-Owned Businesses: Leading the Recovery” noted that Latino entrepreneurs were benefiting our national economy. Their fast-paced growth during a 10-year period was more than twice the national average and the trend was expected to continue for another ten years. To put this into perspective, Latino businesses are forecast “…to increase their total revenue contribution to the economy by 8% annually...,” from 2005 thru 2015, which is threefold the average for all businesses. It’s clear that Latino businesses are thriving and that’s the good news!
The bad news is that the majority of business owners continue to neglect their personal finances. Establishing a retirement plan allows some business owners to build a nest egg, save money on taxes, and shelter assets from most creditors (although alimony, child support, and federal taxes can be collected from such plans).
Business leaders that place a priority on their personal finances are also placing importance on investments in the workplace available to employees through retirement programs. Those same employers advocate the crucial need of financial literacy to their employees. Employees recognize their employers’ commitment to their financial well-being and that increases their employer loyalty.
So why aren’t more business owners taking advantage of this good business practice? Business owners are often too busy running their companies and don’t have time to spare. Many have been consumed with activities focused more on securing capital for their business and neglected their personal finances in the process. That said, some business owners were completely wiped out and left with nothing. The key today is for business owners to simultaneously prioritize both building their business and personal finances, and seeking appropriate professional advice.
About Toroso Investments, LLC
Juan C. Avila and Olga Camargo are Managing Partners with Toroso Investments, LLC. This article is
distributed for informational and educational purposes only and is not intended to constitute legal, tax,
accounting or investment advice. While Mr. Avila and Ms. Camargo have gathered the information
presented from sources that they believe to be reliable, they cannot guarantee the accuracy or
completeness of the information presented. Any opinions express in this article are those of Mr. Avila
and/or Ms. Camargo solely and do not represent the opinions of Toroso Investments, LLC. Furthermore,
the views, forecasts, and opinions expressed in this article are as of the original date of publication,
generally, but not necessarily, the date indicated; are subject to change without notice; may not come to
pass; and do not represent the recommendation or offer of any particular security, strategy or investment.
Neither Mr. Avila nor Ms. Camargo has any obligation to provide revised opinions in the event of changed
circumstances . All investment strategies and investments involve risk of loss. Nothing within this article
should be construed as a guarantee of any specific outcome or profit and none of Mr. Avila, Ms. Camargo
or Toroso Investments, LLC take any responsibility for any loss or damage arising due to any decision
relating to investments taken by you based on any statements, graphs, data, and/or information contained
in this article. Visit Toroso Investments>> http://www.torosoinv.com
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