Financial Advisor Advice to Ethnic Investors


Among affluent ethnic investors surveyed, Hispanics and Blacks express the most satisfaction with their financial advisors; affluent Asians, not as much. Three-fourths of surveyed Hispanics said they are satisfied with their advisor’s knowledge and expertise, compared with 63 percent of Blacks and 45 percent of Asians. What advice are these advisors giving their Affluent ethnic clients?

The highest percentage of Affluent Hispanics report that they are being told to invest in stocks (36 percent, followed by encouragement to plan for long-term health care (25 percent) and to find tax-free investments.

The highest percentage of Blacks (36 percent) reports being advised to find tax-free investments, followed by encouragement to plan for long-term health care (28 percent) and to invest in stocks (24 percent)

Affluent Asian investors are mostly being advised to invest in stocks (28 percent), bonds (26 percent) and to find tax-free investments (22 percent).

Affluent Blacks and Hispanics are more likely than their Asian cohorts to be encouraged by their financial advisor to invest more aggressively (16 percent each vs. 13 percent), while Asians are most likely to be receiving advice to develop a more conservative portfolio (32 percent vs. 22 percent of Blacks and 18 percent of Hispanics) as well as to invest in bonds.

A majority of affluent ethnic investors surveyed are not getting advice on alternative investments. Of those who are, Hispanics are the most likely to have received advice about commodities (24 percent), options (20 percent) and hedge funds(18 percent).

The highest percentage of ethnic investors who have been talked to by their advisor about private equity are Blacks (20 percent), while affluent Asians are most likely to have been talked to about REITs (21 percent) and limited partnerships (18 percent).


For more information on the ethnic segmentation series, click here