Almost all Hispanic investors say "hard work'' got them to their current wealth level.
The Hispanic population makes up 17 percent of the U.S. population, and that number is expected to rise for the foreseeable future.
It makes sense, then, for American companies to want to understand the Hispanic consumer. Likewise, it makes sense for financial providers and advisors to understand Hispanic investors.
From Spectrem’s Ethnic Segmentation Series, Financial Attitudes and Concerns details the needs and worries Hispanic investors have. In some cases, the level of their concern is compared to that of the two other ethnic groups studied – African-Americans and Asians.
Perhaps because they have an influence over major portions of the world economy, Hispanics are more likely than most investors to have a global view of their investments. Fifty-six percent of Hispanic investors said they pay more attention to the global economic situation with an eye toward the impact it will have on their own investments.
Research suggests Hispanics have a better long-term view of their finances. Asked to assess the effects that will come when the U.S. Government stops buying up bonds to keep the economy afloat in the States, 36 percent of Hispanics believe the move will make the stock market decline.
Well above the national average, 96 percent of Hispanic investors say that “hard work’’ contributed to their financial wealth status. They are also more likely to credit education (88 percent), inheritance (24 percent) and running their own business (18 percent) than investors from the African-American or Asian segments.
Asked to quantify their wealth status, Hispanics were asked to place their level of wealth on a scale from 0 to 100, with 0 being not wealthy at all, and 100 being very wealthy. Again, they placed higher than other ethnicities like Asian and African-American, with Hispanics putting themselves at 62.18 on the scale.
Family is strong within the Hispanic community, and 64 percent of Hispanic investors said one of their greatest personal concerns from a health standpoint was concern over a personal family catastrophe.
Hispanics report far greater concern over many issues related to their finances than the other ethnic investors. Chief among them is the 70 percent of Hispanics who report concern over maintaining their own financial position. Similarly, 66 percent report concern over the financial situation for their children and grandchildren, and 49 percent are concerned about financing the education of their grandchildren, more so than their concern over financing the education of their children (33 percent).
Hispanics are far more likely than the other ethnic investors to use a financial advisor to some extent. Sixty-eight percent say they use an advisor at some point in making investment decisions, and that includes 33 percent who consider themselves Advisor-Assisted (regularly consulting with a professional on all investment decisions) or Advisor-Dependent (relying on an advisor to make all of their investment choices).
RELATED: See Millionaire Corner's Best Financial Advisors Search Page
There are areas of personal and financial concern where Hispanics are less involved than African-Americans or Asians. For instance, only 58 percent of Hispanics expect their financial situation to improve over the next 12 months. Only 23 percent say they wish they had taken more risk in investments prior to the financial crisis of 2008 (only 23 percent), and only 17 percent wish they had invested more in real estate prior to the crash.
Only 28 percent of Hispanics say “luck’’ had anything to do with their current wealth level. They are also less concerned about health than the two other ethnic segments, with only 59 percent expressing concern over their own health and 63 percent concerned about the health of their spouse.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.