In 1980, media moguls Bob Johnson and John Malone partnered together to launch prominent cable network, BET (Black Entertainment Television). Now 40 years later, they’ve reconnected to team up for a new business venture.
According to Black Enterprise, serial entrepreneur Johnson started RLJ Cos., his portfolio of businesses that include the Retirement Clearinghouse L.L.C. — a company in which businessman Malone is now an investor in.
Citing this renewed partnership as a “meeting of like minds,” both Johnson and Malone announced the latter party has purchased a minority stake in Retirement Clearinghouse to help shrink the wealth and retirement savings gap for minorities, a news release reports.
“I invested alongside Bob when he launched Black Entertainment Television. When Bob approached me to talk about his work with 401(k) auto portability, I recognized an opportunity to extend that work into practical ways to achieve inclusive capitalism,” Malone shared in a statement.
He also shared his perspective of the minority wealth gap in America and how RCH is working to resolve it.
“In my view, shrinking the minority wealth gap is a long-term strategic issue for our nation’s economic and social health, and private-sector programs like auto portability can make a meaningful impact. Initiatives that have the potential to deliver outsized results while requiring little effort are few and far between. I am pleased to use my experience to fully support Bob and Retirement Clearinghouse in their work to preserve minority workers’ retirement savings when they change jobs,” he concluded.
According to a press release, the news of this investing partnership arrives following the announcement that outsourcing company Alight Solutions will be leading the nationwide launch of the RCH Auto Portability Program, designed to help new workers move their savings to their new employers’ plans when they change jobs.
The launch of this program is said to enable new workers and help them avoid cashing out, paying taxes, and being subject to penalties.
Johnson has high hopes that his company will allow retired minorities to increase their savings funds.
“I am pleased to be working with John again to level the economic playing field for minorities,” Johnson said in a press statement. “With auto portability on the cusp of mainstream adoption, our nation has a promising opportunity to finally close the retirement-savings gap for Blacks and other minorities. John and I have a long history of taking on big challenges, as we did with the founding of Black Entertainment Television, the first Black-owned company publicly traded on the New York Stock Exchange. With his guidance, we can change the status quo and do our part to close the wealth gap for America’s minority communities.”
For more information about RCH, visit its website.