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Asset Preservation Advisors


State: GA

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 6: Affluent Asian Advisor Usage

Affluent Asian investors are more likely that their Hispanic and Black counterparts to say they can do a better job of investing than a professional advisor.

| BY Donald Liebenson

Financial advisors often need to tailor their advice based on the investor’s age, gender, wealth level, and occupation and advisor dependency. They also need to consider the investors’ ethnic background.  Spectrem’s new study in its Ethnic Segmentation Series – “Advisor Relationships and Changing Advice Requirements” – examines the different ways ethnic investors relate to the advisor with whom they work. The study looks at investors of affluent African-American, Hispanic and Asian backgrounds.

Among affluent ethnic investors surveyed, Asians are most likely to identify themselves as self-directed, meaning they make all of their financial and investment decisions without the benefit of a financial advisor.

Four-in-ten identify themselves as self-directed, compared with 36 percent of Hispanics and Blacks, respectively. They are also the least likely to consult with an advisor for a specific event, such as asset allocation or saving for college or retirement (39 percent vs. 43 percent of affluent Black investors and 47 percent of Hispanics)

Accordingly, affluent Asian investors are more likely that their Hispanic and Black counterparts to say they can do a better job of investing than a professional advisor. (35 percent vs. 30 percent and 27 percent, respectively).

Affluent Asians comprise the highest percentage of ethnic investors surveyed who completed a college education (93 percent). Nearly six-in ten (57 percent) report they are still working.

Among Affluent Asians who do use a financial advisor in some capacity, the highest percentage uses either a full service broker or discount broker. Forty percent rely and trust their advisor for most of their financial needs, while one-third report they keep a portion of their investments with an advisor for the purpose of comparing results with their own investments. Thirty percent turn to an advisor for specific types of investments such as real estate or alternative investments.

A majority (53 percent) rate their advisor on whether or not he or she regularly outperforms the market, compared with 46 percent of affluent Hispanic investors and 4 percent of Blacks.

The highest percentage (39 percent) has been with their advisor for between 3 to less than 10 years. These advisors are most likely to have been referrals from friends or family members. As for advisor loyalty though, 54 percent of affluent Asians said they would remain with the firm if their advisor left to work elsewhere. Of these, six-in-ten said the safety and brand name of the company was more important than their advisor relationship (not surprising, as affluent Asians are less likely than their Black and Hispanic counterparts to feel that most financial advisors are professional and knowledgeable.

There is a pronounced wariness among affluent Asian investors surveyed toward financial advisors, with six-in-ten believing that many financial advisors are biased toward a certain group or type of products, while half think they are more concerned with selling products than in working in their clients’ best interests. Roughly two-thirds (64 percent) find the services of a professional advisor to be very expensive, compared with 59 percent of affluent Blacks and 56 percent of Hispanics.

About the Author

Donald Liebenson

Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.  

A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.