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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 4: No Advisor, No Problem?

Affluent investors, regardless of ethnic background, are generally confident in their financial knowledge and investment acumen.

| BY Donald Liebenson

Financial advisors often need to tailor their advice based on the investor’s age, gender, wealth level, 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.

Affluent investors, regardless of ethnic background, are generally confident in their financial knowledge and investment acumen. At least one-third of ethnic investors surveyed consider themselves self-directed, meaning they make all of their financial decisions without the benefit of a financial advisor.

The highest percentage of affluent Black, Hispanic, and Asian investors are event-driven, meaning they make most of their own financial decisions, but do consult a financial advisor for specific purposes such as saving for college, asset allocation or retirement planning. Almost half (47 percent) of affluent Hispanics identify themselves as such, compared with 43 percent of Blacks and 39 percent of Asians.

Affluent Asian investors are more likely than their Hispanic and Black counterparts to identify themselves as self-directed investors (41 percent vs. 36 percent, respectively).

When asked why they do not use a financial advisor, nearly half of Blacks (47 percent) said they thought they could do a better job of investing than a professional. Hispanics and Asians expressed less confidence in their financial knowledge and investment abilities at 35 percent each.

Affluent Hispanic investors were the most likely (30 percent) to express the wariness that their financial advisor would be looking out for their best interests, compared with 26 percent of Blacks and 25 percent of Asians.

Among affluent Hispanic (25 percent), Asian (23 percent) and Black (21 percent) investors, the third most-cited reason for not using a financial advisor was that they felt they could not afford one.

The other most-cited reasons were that these investors said they did not know who to use for a financial advisor or that they felt they didn’t have enough assets to warrant having an advisor.

What would make these investors consider using an advisor? The highest percentage of affluent Blacks (53 percent), Asians (40 percent) and Hispanics (35 percent), responded they would seek out a financial advisor in the event of receiving a financial windfall that they needed help with to invest. The second most-cited case scenario for using a financial advisor was “a situation where I could get professional help for what I feel is a fair price), followed by “a situation where I get tired of managing my investments.”

At least 15 percent would consider using a financial advisor if said advisor received a very favorable recommendation from a trusted friend or family member.

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.