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Featured Advisor



Srbo Radisavljevic
Managing Principal/Investment Advisor

Edge Portfolio Management

City:Northbrook

State: IL



BIOGRAPHY:
At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, following Chicago sports, enjoying ethnic cooking, and serving as a school board member for Norridge School District 80.

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The Ethnic Investor Part 5: African-Americans

More than one-fourth of affluent African-American investors do not use an advisor, and almost half of those are unlikely to start using advisors in the future.

| BY Kent McDill


 

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.

Spectrem’s research on affluent African-American investors shows that they are younger on average than non-ethnic investors but older in general than Hispanic or Asian investors. Because of that, less of them are retired than in the non-ethnic community but more of them are retired than Hispanics or Asians.

African-American investors are less likely to have graduated college; while all of them graduated high school, 80 percent graduated from college and 20 percent attended college but did not graduate.

African-American investors are twice as likely as any other investor segment, including non-ethnic, to use more than two advisors. They are the least likely group to settle on one advisor for all of their investment needs.

More than one-quarter of all African-American investors do not use financial advisors, and almost half of those say they do not use advisors because they believe they can do a better job of investing than a professional. That percentage matches the percentage of affluent African-American investors who say it is either “unlikely’’ or “very unlikely” they will use an advisor in the future.

Keeping with the theme of caution when using financial advisors, 49 percent of affluent African-Americans who use advisors do so for the purposes of investing in alternative products or real estate, where expertise often extends beyond that of the average investor. African-Americans are far more likely to use an advisor for that purpose that any other ethnic segment.

Tying in with their use of advisors for specific purposes, 18 percent of wealthy African-American investors said they found their advisor by shopping for a specific investment product and discovered the advisor specialized in that product.

Finally, while many investors from all ethnic segments report a concern over timely contact with advisors, African-American investors are more demanding of their advisors in that regard. Almost three-quarters of African-American investors said they would change advisors if they did not get phone calls returned in a timely fashion, and 55 percent felt the same way about emails being ignored. Fifty-seven percent said they would consider making a change if an advisor was not proactive in getting in making contact.

 



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.