A women-run company led by investing titan Sallie Krawcheck, known as “the most powerful woman on,” is taking on the ambitious role of narrowing the gender wealth gap.
“There have been two big drivers of wealth in our country: one of which has been real estate, which people of color have been redlined out of, the other of which has been investing,” Krawcheck told CBS News’ Michelle Miller. “And women and people of color have been kept out from that.”
Thebetween men and women in the U.S. has been the subject of debate and countless campaigns for equality, and that wage gap is even steeper for women of color. That wage gap, coupled with women taking more time out of their careers to care for children and investing less than men, means that even women who successfully saved for retirement could find themselves with as much as $1 million less in assets than their male counterparts.
“Women make 82 cents to a man’s dollar. It’s slowly getting better, but to be frank — it’s decades away from closing for White women, 100 plus years for Black women, and 200 plus years for Latinx women,” Krawcheck explained.
The disparity then leads to a long term gender wealth gap, or “how much money we keep” versus how much is earned.
“That gender wealth gap is 32 cents for a man’s dollar, and just a single digit number of pennies for Black women,” she said.
And unlike the wage gap, Krawcheck said the wealth gap is “moving in the wrong direction” and will take more than bigger paychecks to close.
She realized it would take more than larger paychecks to close the widening gap — so in 2014, Krawcheck founded Ellevest, a digital investment platform designed