Advisors who fail to meet the needs of diverse investors as they become more confident, are leaving money on the table.
A new report from J.P. Morgan Wealth Management reveals that Black and Hispanic women are feeling more knowledgeable about investments and retirement planning than they were five years ago. This is most prominent among Black women (69%) with Hispanic and Latina women less so (52%).
These women are also focused on why they want to build wealth with 68% aiming to have a financial legacy to pass down to the next generation and around seven in ten wanting to use their wealth to help family and friends.
The study also found that women invested the same or more in their brokerage account in 2023 as in 2022 (83% said so) while men were less likely to say this (74%).
Men and women were also split on investment style with male respondents more likely to say their style is ‘risk-taking’ (29% of men vs. 15% of women) and ‘active’ (35% of men vs. 25% of women). Men are twice as likely to check their brokerage account balance weekly (34% vs. 17%).
Understanding the different needs, attitudes and priorities of every group is a key part of this work. We believe the most important thing is to outline your goals and get on a plan to achieve them,” said Kristin Lemkau, CEO of J.P. Morgan Wealth Management.
A recent poll from Allianz Life also revealed that diverse Americans are returning to financial advisors for retirement planning after a previous dip.
Most investors are concerned about inflation (88%), but while 79% are also concerned about recession, more than two thirds say it is not affecting their financial decisions.
Meanwhile, 74% of investors would not consider selling after a 20% dip in their investment portfolio.
“Our business and economy are stronger when it is more inclusive,” said Thelma Ferguson, Global Head of Diversity, Equity & Inclusion and Vice Chair of Commercial Banking at JPMorgan Chase. “Understanding the trends and habits of those communities that for so long have been excluded is an important step in making progress towards closing the opportunity and wealth gaps.”
More about the report is available on the J.P. Morgan Wealth Management website.
Also, Orion has added BlackRock, Fidelity, and Vanguard to its custom portfolios suite, and RedBlack has set up a new headquarters after crossing a trillion-dollar milestone.
Also, New York-based Legacy Edge Advisors names its first-ever CEO, while Novare Capital Management hires a Vanguard veteran with a multigenerational planning focus.
Asset managers are racing to bring private market products to retirement plans, but cost and liquidity concerns linger.
Treasury's latest tax-exemption crackdown on private schools lands in the wake of a separate push to restrict refundable credits for some immigrant filers.
Workforce trust measures predicted which companies came out ahead during COVID-19. The same dynamic may now be playing out across the AI transition — and the data suggests the spread could be just as wide.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
