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

New Report from UBS Highlights Latino’s Finances Focus on Family and Closing the Wealth Gaps

Provided by Karina A. Meza

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.

Read the full Invest to advance report.

About UBS’s Strategic Client Segments – UBS recognizes that everyone is different and offers focused advice specifically geared to where clients want to go–and help them get there. UBS’s Strategic Client Segments serve Women, Multicultural Investors, Business Owners, Athletes & Entertainers, and the Rising Generation. Learn more about UBS’s specialized advice.

About UBS Global Wealth Management – As the largest truly global wealth manager, UBS Global Wealth Management provides comprehensive advice, solutions and services to wealthy families and individuals around the world. Clients who work with UBS benefit from a fully integrated set of wealth management capabilities and expertise, including wealth planning, investment management, capital markets, banking, lending and institutional and corporate financial advice.

About UBS – UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS is the largest truly global wealth manager, and a leading personal and corporate bank in Switzerland, with a large-scale and diversified global asset manager and a focused investment bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capital efficient, and have an attractive long-term structural growth or profitability outlook. Headquartered in Zurich, Switzerland, UBS has offices over 50 regions and locations, including all major financial centers, and employs more than 72,000 people around the world. UBS Group AG is the holding company of the UBS Group. Under Swiss company law, UBS Group AG is organized as an Aktiengesellschaft, a corporation that has issued shares of common stock to investors.