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.
For more information on Ethnic Investors, click here