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Investments : Your Money Working Hard For You

MICHIGAN CHRONICLE — Saving money is certainly better than spending it frivolously.

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By Jordan Woods

Saving money is certainly better than spending it frivolously. But being responsible also means spending so that our money works for us even when we’re sleeping. Investing, particularly in the stock market, can be scary or intimidating, especially when you’re just starting. However, it should be an important aspect of your long-term goals (remember, we’re working to build generational wealth). This installment will give you the framework to become a savvy investor by exploring some examples investment vehicles in terms of risk and potential return, and providing you with resources to plan your investment strategy.

Investment Vehicles

1. Low Risk:

  • Certificates of Deposit (also known as “CDs”) give your money to the bank for a specific period of time, giving them extra cash on hand. In turn, you receive a more predictable return ( typically 0.5-3%) at a rate that is often higher than that of savings accounts. CDs are also covered by the same FDIC insurance that your bank is, further protecting your investment.
  • Treasury Bonds are fixed-interest U.S. Savings Bonds issued by the U.S. Department of the Treasury. They are fully backed by the United States government and are considered to be among the safest investments one can make, but do not reach their maturity date for 10+ years after being bought.
  1. Medium Risk:
  • The most talked about investment vehicle is the stock market. You can buy stakes of ownership yourself, or you can put your money in the hands of an group of finance professionals who focus their time on finding the best mixed of investments for a consistent, positive return (typically around 5-10%).
  • A Mutual Fund is a company that pools money together from investors and then invests that money in stocks, bonds, short-term securities, etc. They help to mitigate some of the risk through diversification, but also can include som riskier investments as part of their portfolios, meaning that they can reap some of the rewards of high-risk investments without exclusively relying on those investments.
  • An Index Fund (or ETF) is a type of mutual fund that is designed to invest in, and thus replicate, the performance of one particular type of investment. For example, an S&P 500 ETF would invest money across all of the S&P 500 companies, so that the fund’s performance matched that of the S&P 500.
  1. High Risk:
  • Junk Bonds are bonds that promise higher interest payments than regular bonds, primarily because they come with a higher risk of default, because the entity issuing them is in poor financial shape. These bonds are typically issued by companies looking to raise capital quickly.
  • Cryptocurrencies (such as Bitcoin) are digital assets that serve as mediums of exchange, using cryptography to ensure more secure financial transactions. Many types of cryptocurrencies experience large swings of positive and negative returns that are unpredictable, but if caught at the right time can potentially increase your positive return tenfold– or more. Many, if not most cryptocurrencies have no official backing, further exposing your investment.

These are just some of the many ways that exist for you to invest your money. No matter how you choose to invest, one  essential guideline is to spread out your portfolio across a few different investment vehicles. This practice, known as diversification, is a prudent response to the fact that some investment types, and individual investments within each type, are more volatile than others. ROI is the percentage of your original investment that you have gained or lost since you decided to invest. An acceptable ROI from following sound investment principles is typically around 7-8% over the long term. This is including outlier investment scenarios where people made and kept large sums of money in a short period of time. Keep this in mind when deciding where to invest and when analyzing your portfolio’s performance. Two things we all can and should do are to start small, and then remain patient with our investments. Often lower average positive returns over time also come with less risk, and vice versa. First Independence Bank’s Asset Allocation calculator can help you create a balanced portfolio and their Investment Returns calculator can help you track and meet your long-term investment goals.

Keep an open mind when easing your way into investing. Whether you’re saving for college, looking to start a business, or looking towards retirement, keep in mind the typical timeline for returns for the things you choose to invest in and how that aligns to the timeline for your reason(s) for investing. Working with an investment professional and doing your own research will help you create and stick to a dynamic investment strategy that is based solely on your personal financial goals instead of those of other people.

This article originally appeared in the Michigan Chronicle.

Activism

2025 in Review: Seven Questions for Sen. Laura Richardson, Who Made Legislative History This Year

Before elected office, she served as a legislative staffer at the local, state, and federal levels and built a strong academic foundation, earning a political science degree from UCLA and an MBA from USC.

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Sen. Laura Richardson (D-San Pedro). File photo.
Sen. Laura Richardson (D-San Pedro). File photo.

By Edward Henderson, California Black Media 

Elected in November 2024 to represent California’s 35th Senate District, Sen. Laura Richardson (D-San Pedro) brings decades of experience to her role.

Before elected office, she served as a legislative staffer at the local, state, and federal levels and built a strong academic foundation, earning a political science degree from UCLA and an MBA from USC.

Richardson says she remains deeply committed to empowering residents, strengthening neighborhoods, and supporting the local economy.

For example, SB 748, a bill she authored that Gov. Newsom signed into law this year, allows cities to use existing homelessness funds to clear unsafe RV encampments, and another measure aimed at expanding provider access for Medi-Cal patients.

California Black Media (CBM) spoke with Richardson about her successes and disappointments over the past year and her plans for 2026.

What stands out as your most important achievement this year?

Being number one in getting the most bills signed by a freshman senator. Our team and staff were able to effectively move legislation through committees in both the Senate and Assembly and gain the governor’s support.

How did your leadership contribute to improving the lives of Black Californians?

Securing overall agency support from the governor to begin the work of understanding and documenting descendants of slavery. The discussion around “40 acres and a mule” will be ongoing for many years, but moving forward with creating an agency—although not fully funded—was significant. They were baby steps, but they were steps.

What frustrated you the most this year?

The administration. Even though federal and state roles differ, California has its own values and priorities. When the federal government makes cuts that impact Californians, the state legislature feels the need to backfill to protect people. It was challenging and frustrating.

What inspired you the most this year?

SB 237, which I was a joint principal author on, inspired me. It dealt with fuel stability. Two refineries closed, and several others are barely hanging on. Even as we work toward zero emissions, we still need a certain amount of fuel. SB 237 opened up some of the fuel potential in Kern County, and there’s a pipeline from Kern County down to my district.

What is one lesson you learned this year that will inform your decision-making next year?

Engage the governor’s staff earlier. I’m going to push to involve the governor’s legislative staff sooner.

In one word, what is the biggest challenge Black Californians are facing right now?

Affordability. No matter how much you make, everything is more expensive—gas, groceries, insurance, mortgages. Costs keep rising while salaries don’t.

What is the goal you want to achieve most in 2026?

Creating a process for dealing with abandoned cemeteries.

The last piece—not specific to this year but building toward the future—is figuring out how people and businesses in the district and in California can participate in major events like the Olympics, FIFA, and the Super Bowl, all of which are taking place here.

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Activism

2025 in Review: Seven Questions for Sen. Lola Smallwood-Cuevas – an Advocate for Jobs and Justice

I’m proud of how we fought back against the Trump Administration’s attacks, especially on the budget, and strengthened protections for workers while fortifying the cultural power of Black Los Angeles. Workers’ rights remained central in my bill package because my background in organizing taught me a simple truth: when workers do well, communities do well.

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Sen. Lola Smallwood-Cuevas (D-Los Angeles). File photo.
Sen. Lola Smallwood-Cuevas (D-Los Angeles). File photo.

By Edward Henderson, California Black Media

Representing the 28th Senate District, Sen. Lola Smallwood-Cuevas (D-Los Angeles) brings a lifelong commitment to working families.

After earning her communications degree from California State University Hayward (now known as CSU, East Bay), Smallwood-Cuevas began her career as a journalist telling the stories of working people—an experience that drew her into the labor movement.

Since being elected to the California State Senate, Smallwood-Cuevas has championed legislation that strengthens worker protections, expands access to justice, and uplifts historically marginalized communities.

California Black Media (CBM) spoke with Smallwood-Cuevas about her successes and disappointments this year, as well as her goals for 2026.

What stands out as your most important accomplishment this year?

I’m proud of how we fought back against the Trump Administration’s attacks, especially on the budget, and strengthened protections for workers while fortifying the cultural power of Black Los Angeles. Workers’ rights remained central in my bill package because my background in organizing taught me a simple truth: when workers do well, communities do well.

I also moved forward with the creation of California’s first Black cultural district in South LA. Amid gentrification, this district will protect cultural assets and bring resources as Los Angeles prepares for the FIFA World Cup and Olympic Games.

How did your leadership contribute to improving the lives of Black Californians this year?

We must name the disparities Black communities face—higher homelessness, incarceration, and health incidents. During the budget fight, when the governor proposed zero dollars for homelessness, I pushed hard. We secured $500 million for homelessness response, reinstated $1 billion for supportive programs, and added another $500 million for affordable housing.

What frustrated you most this year?

Our people are under attack. Racial profiling is creeping back into federal policy. Crime is being weaponized to justify disproportionate incarceration—even though crime rates are at historic lows.

But what frustrated me most was how quickly diversity, equity, and inclusion were rolled back through federal orders and preemptive action by corporations and foundations.

What has been your greatest inspiration this year?

Our resilience. California does not stay down. The movement around Proposition 50 was incredibly inspiring. I saw unity across Black California.

What is one lesson you’ve learned this year that will guide your decision-making next year?

Black California is resilient and brilliant. We are stronger than our opposition. And the lesson echoes Dr. King: “Organize, baby, organize.” We must build coalitions across local, county, and state levels.

In one word, what is the biggest challenge facing Black Californians?

Visibility. Visibility is power. We must be present—in rooms, on boards, in media, in headlines. We cannot retreat from Black identity.

What is the goal you most hope to achieve in 2026?

Economic stability. When California enters a recession, Black communities enter a depression. My goal is to advance policies that create real economic opportunity through safety-net protections, contract access, and targeted local hiring for quality jobs. crisis.

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Activism

Families Across the U.S. Are Facing an ‘Affordability Crisis,’ Says United Way Bay Area

United Way’s Real Cost Measure data reveals that 27% of Bay Area households – more than 1 in 4 families – cannot afford essentials such as food, housing, childcare, transportation, and healthcare. A family of four needs $136,872 annually to cover these basic necessities, while two adults working full time at minimum wage earn only $69,326.

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Affordable housing is the greatest concern for consumers, it’s followed by the cost of groceries. Courtesy photo.
Affordable housing is the greatest concern for consumers, it’s followed by the cost of groceries. Courtesy photo.

By Post Staff

A national poll released this week by Marist shows that 61% of Americans say the economy is not working well for them, while 70% report that their local area is not affordable. This marks the highest share of respondents expressing concern since the question was first asked in 2011.

According to United Way Bay Area (UWBA), the data underscores a growing reality in the region: more than 600,000 Bay Area households are working hard yet still cannot afford their basic needs.

Nationally, the Marist Poll found that rising prices are the top economic concern for 45% of Americans, followed by housing costs at 18%. In the Bay Area, however, that equation is reversed. Housing costs are the dominant driver of the affordability crisis.

United Way’s Real Cost Measure data reveals that 27% of Bay Area households – more than 1 in 4 families – cannot afford essentials such as food, housing, childcare, transportation, and healthcare. A family of four needs $136,872 annually to cover these basic necessities, while two adults working full time at minimum wage earn only $69,326.

“The national numbers confirm what we’re seeing every day through our 211 helpline and in communities across the region,” said Keisha Browder, CEO of United Way Bay Area. “People are working hard, but their paychecks simply aren’t keeping pace with the cost of living. This isn’t about individual failure; it’s about policy choices that leave too many of our neighbors one missed paycheck away from crisis.”

The Bay Area’s affordability crisis is particularly defined by extreme housing costs:

  • Housing remains the No. 1 reason residents call UWBA’s 211 helpline, accounting for 49% of calls this year.
  • Nearly 4 in 10 Bay Area households (35%) spend at least 30% of their income on housing, a level widely considered financially dangerous.
  • Forty percent of households with children under age 6 fall below the Real Cost Measure.
  • The impact is disproportionate: 49% of Latino households and 41% of Black households struggle to meet basic needs, compared to 15% of white households.

At the national level, the issue of affordability has also become a political flashpoint. In late 2025, President Donald Trump has increasingly referred to “affordability” as a “Democrat hoax” or “con job.” While he previously described himself as the “affordability president,” his recent messaging frames the term as a political tactic used by Democrats to assign blame for high prices.

The president has defended his administration by pointing to predecessors and asserting that prices are declining. However, many Americans remain unconvinced. The Marist Poll shows that 57% of respondents disapprove of Trump’s handling of the economy, while just 36% approve – his lowest approval rating on the issue across both terms in office.

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