A study from the credit bureau Experian found that 62% of LGBTQ individuals experienced financial challenges because of their sexual orientation or gender identity.
Joining us on the show is David Rae, Certified Financial Planner™, Accredited Investment Fiduciary™, and President / Founder of DRM Wealth Management LLC. David joins us to provide some insight as to what kind of financial challenges members of the LGBTQ persons face compared to the general population, as well as tips on how to better your financial situation regardless of your sexual orientation or gender identity.
According to the 13th LGBTQ Community Survey from San Francisco-based Community Marketing:
- 73% of LGBTQ people eat dinner out at least once a week
- 69% buy wine while out or for use at home
- 77% pay for streaming TV subscriptions
- 52% regularly attend live theater or musicals
- 73% buy facial moisturizer
- 41% have paid for a clothing item worth more than $100 in the past year.
- 86% took at least one vacation or leisure trip in 2019
- one-third took four or more.
- Many LGBTQ community members have shared some excessive spending occurs because they are either hiding who they are or for the first time don't feel they have to hide who they are and want to belong to a community.
On top of the emotional stress, life can also be financially stressful because of job insecurity and the inability to pursue higher incomes.
- LGBTQ persons can be fired for being gay or transgender in more than half of the 50 states.
- Transgender people are more likely to have household incomes of $12,000 or less. In fact, according to the most recent U.S. Transgender survey, 29 percent of respondents are living in poverty, compared with just 12 percent of the general population.
Additionally, members of the LGBTQ Community face financial challenges such as:
- Pay Gap
- Gay Men earn about 69 cents on the dollar to their straight male peers
- Lesbian Women earn about 89 cents on the dollar to their straight female peers
- Higher Living Costs
- Areas traditionally more welcoming to LGBTQ persons come with higher price tags. For example, Manhattan and San Francisco are well known for being both LGBT-friendly and budget-unfriendly. Living costs in the respective areas are 195 percent and 118 percent above the national average, according to research firm Sperling's Best Places.
- States with the lowest living costs – West Virginia and Arkansas at 17 percent below the national average and Oklahoma at 16 percent below average – are also among the 20 states that do not have hate crime laws specifically protecting LGBT people.
- Retirement
- 7 in 10 LGBTQ Americans say they are behind on saving for retirement.
- AIDS Epidemic: Many gay men now in their 60s - 80s didn't save for their retirement or old age because they didn't expect to survive the AIDS epidemic.
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