5 Conversations to Have With Asian American Pacific Islander Clients

What You Need to Know

May is Asian American and Pacific Islander Heritage Month.
Many AAPI community members are caring for children and parents at the same time.
Another common concern: Owning and running a small business.

As we continue to celebrate Asian American and Pacific Islander Heritage Month, it’s an important time to reflect on how we, as financial advisors, can provide value and support our clients who are members of the AAPI community.

There are a lot of things that make the AAPI community unique, and one is how often three or more generations live together in one house.

In fact, more than a quarter (27%) of Asian Americans live in a multigenerational household, housing grandparents, parents and children under one roof, according to Pew Research Center.

This arrangement promotes close family bonds, shared responsibilities, and cultural preservation.

But it also creates and puts added pressure on a generation of “Sandwich Caregivers” who are managing financial and caregiving responsibilities for both their children and older relatives.

Clients who are part of the AAPI community and in the sandwich generation may be facing financial challenges that make money management and achieving their goals more difficult.

They’re also likely overwhelmed with having to make complex financial decisions for multiple generations, such as navigating extended care planning, setting up college savings, planning for retirement, leaving a legacy and more.

Fortunately, as financial advisors, we can guide our clients as they tackle these complex decisions and help them create a plan that aligns with their long-term goals and values.

Here are five priorities to consider when speaking with your AAPI clients:

1. Managing Multigenerational Businesses

Among underrepresented groups in the United States, Asian Americans have the highest rate of business ownership, according to U.S. Census data.

This means your clients may not just be dealing with multigenerational challenges in their family lives, but also their professional lives, as many households run small businesses that are integral to local communities.

Working with family can present challenges, but it also provides a chance for clients to take a long-term view of their business.

Encourage your clients to work with their families to implement succession plans, align on core values and develop younger generations’ skills to set up their business and family for generational financial stability.

2. Financial Planning Now and for the Future

Navigating the complexities of multigenerational AAPI households extends beyond the realm of business.

It can be a balancing act to meet short-term and long-term financial needs while caring for multiple generations of loved ones under one roof.

To help your clients use their finances to lead lives of purpose now and down the road, encourage them to closely monitor spending, budget effectively, and prioritize their own retirement planning while also taking steps to ensure the well-being of their children and their aging parents.

3. Maintain Open Lines of Communication

Whether your client’s main concern is in the home, business, or planning for their family’s future, they should talk openly about their goals with both their children and their parents.

Transparent communication with family is key to making sure everyone is on the same page.