We study how economic and social disparities between Black and White Americans shape the composition of their balance sheets and contribute to the racial wealth gap in a life-cycle model. Our analysis yields three main results. First, environmental disparities fully explain differences in portfolio composition. Second, in a dynamic setting where consumption and portfolio choices are endogenous, negative economic conditions increase saving demand and therefore have a limited impact on the racial wealth gap. In other words, the overall consequence of these disparities on Black wealth is smaller than their direct monetary and welfare costs. Third, progressive programs like Social Security can only explain one-third of the racial wealth gap.