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Ethnic Investors Examine Wealth Management

With less exposure to wealth management services, ethnic investors are a good target for advisors who provide such services. 

| BY Kent McDill


As ethnic communities in America grow, so grows the affluent ethnic investor community.

Spectrem’s latest whitepaper – Marketing Wealth Management to Ethnic Investors – details the information African-American, Asian and Hispanic investors have about wealth management services, the collection of financial services offered by many providers in the United States. 

According to Spectrem’s research, 81 percent of non-ethnic wealthy investors are familiar with the term “wealth management’’ and the same percentage of African-Americans report familiarity with the term. But only 71 percent of affluent Asian investors and 68 percent of affluent Hispanic investors are familiar with the phrase “wealth management.”

While 27 percent of non-ethnic investors currently receive wealth management services, only 21 percent of African-American and 17 percent of Asian and Hispanic investors do so. These percentage are seen as an opportunity for financial advisors to advance the idea of wealth management services with ethnic investors.

Interestingly, there are wide differences between what services ethnic investors and non-ethnic investors expect from a package of wealth management services. For instance, while 80 percent of non-ethnic investors expect a comprehensive financial planning in their wealth management, only 66 percent of Hispanics feel that way.

Eighty-one percent of Asian investors think a wealth management package should include access to a wealth manager for assistance with administrative tasks related to investments, while only 72 percent of non-ethnic, 64 percent of Hispanics and 63 percent of African-Americans expect that kind of service.

Ethnic investors are not as interested in tax-related services as non-ethnic investors in their wealth management package, the research shows.

All investors have the highest rate of expectation toward investment planning in their wealth management package of services, while checking accounts and access to credit are the least-expected service to be provided. Less than 60 percent of all investors expect trustee services in their wealth management package as well.

 



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.