Latino’s Finances Focus on Family and Closing the Wealth Gaps [REPORT]

UBS’s Multicultural Investors Strategic Client Segment announced the launch of its Invest to advance research, exploring the wealth journeys of over 5,000 investors in the United States with at least $1 million in investable assets. The report shows Latinos and Hispanics prioritize providing financial support for their loved ones. It also found that in spite of challenges faced in access to financial services, Latino investors have charted successful paths to wealth.

The majority of high net worth investors surveyed (61%) built their wealth through investment portfolios. Traditionally, as few banks, brokerages or trust companies previously existed to serve multicultural investors, over a third built wealth outside of typical stock and bond investing. Many Hispanic and Latino American investors turned their inheritances into robust investment accounts and home purchases.

“This report confirms what many multicultural investors have known for some time; that there are many paths to wealth generation and each individual’s goals are unique,” said Melinda Hightower, Multicultural Investors Strategic Client Segment, UBS Global Wealth Management. “With financial inclusion and greater data transparency, we can create more personalized, tailored and inclusive strategies which meet multicultural investors’ needs.”

Where is there a gap?

Many Hispanic and Latino American investors surveyed currently provide multigenerational financial support to their parents, adult children, or other family members. Almost six out of 10 currently support family members outside the US. This requires maintaining a higher cash balance, which leaves less to invest for retirement and less to support their families with major life events, such as home purchases and education.

Eyes on the future

A comfortable retirement is a top financial goal for Hispanic and Latino American investors; however, most were more risk averse compared to multicultural investors overall. Broadening their investment planning could help meet their current needs and provide additional opportunities for the future.

To view report, CLICK HERE.