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Miguel Ramos remembers when a woman from the Hispanic community finally got comfortable talking with him about her finances, after previously feeling closed off to other advisors.
“She never felt comfortable with another advisor, and it was partly because of the language barriers,” he said. Ramos, a Minneapolis-based advisor with wealth management firm Thrivent, said he spoke with the woman in both English and Spanish. Ramos himself had immigrated to the U.S. from Venezuela as a young adult, and he had worked closely with the local Spanish-speaking community in his practice, he said.
“It was huge for her,” he said. “She finally started opening up and exploring new opportunities like investing.”
The woman was like many clients Ramos has met — she had familiarity with the basics of personal finance, and had saved and budgeted well, but needed help with thinking about the bigger financial picture of her life goals, in areas like retirement and legacy planning. Often Hispanic communities avoid investing, he said, due to “the lack of understanding.”
READ MORE: Inheritance race gap persists even among wealthier families
Hispanic Americans currently make up nearly one-fifth of the American population, according to 2022 Census data, and they are the largest racial or ethnic minority group in the country. They have also become a powerful force in the economy, having contributed an estimated $3.2 trillion of economic output in 2021, according to a report last month by the Latino Donor Collaborative — which would give them the fifth-largest GDP in the world if they were grouped as an individual nation.
Hispanics’ collective wealth is projected to grow to $113 trillion by 2050, according to a recent report by Finhabits (a fintech “created by Latinos for Latinos”). Many will be new to wealth, making them prime targets for a relationship with a financial advisor — if an advisor understands how to engage with them.
This Hispanic Heritage Month (Sept. 15-Oct. 15), FP spoke with several experts on how advisors and wealth firms can better serve the growing wealth management needs of Hispanics and Latinos. Below are four tips they shared.
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