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Asset Preservation Advisors




City:Atlanta

State: GA



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APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

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The Ethnic Investor, Part 9: Wealth Transfer

Affluent African-American investors have significant interest in educating their children and grandchildren about their wealth transfer.   

| BY Kent McDill


For many affluent ethnic investors, family is everything, and the transfer of wealth from one generation to the next is a significant consideration.

However, the conversation about wealth transfer occurs differently depending on the ethnicity of the investor. In fact, more than 40 percent of Asian investors have not discussed a wealth transfer plan with anyone who would provide guidance.

Spectrem’s Ethnic Segmentation Series study Advisor Relationships and Changing Advice Requirements examines the attitudes and concerns of affluent ethnic investors, including opinions related to wealth transfer.

According to the study, while 41 percent of affluent Asian investors have not had a wealth transfer discussion yet, a large percentage of African-American (39 percent) and Hispanic (38 percent) investors have had the conversation with family members about a wealth transfer plan.

In terms of professional assistance, 42 percent of Hispanics have asked a financial advisor about a wealth transfer plan. Among investors not in one of the studied ethnic segments, 45 percent have consulted an attorney and 39 percent have talked to a financial advisor.

While most wealth transfer plans pass accumulated wealth on to spouses and children, ethnic investors are more likely to consider grandchildren and extended family members. Twenty-nine percent of African-American investors include grandchildren and 27 percent of affluent African-Americans include extended family members. Twenty-nine percent of Asian investors also consider extended family members as well.

Ten percent of both affluent African-American and Asian investors also include religious organizations in their wealth transfer plans.

African-American investors also report a greater than average interest in educating their children about their wealth. Seventy-one percent of African-Americans believe they should conduct a one-on-one meeting with their children and grandchildren to talk about their wealth situation (double the 36 percent of non-ethnic investors who believe that).

Also, 35 percent of African-Americans think children should attend seminars on the topic or read educational materials provided by the investor. Forty-four percent of affluent African-American investors (and 44 percent of Hispanic investors) think it is a good idea to create a financial plan for the next generation in anticipation of the wealth transfer.

 



About the Author


Kent McDill

kmcdill@spectrem.com

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.