Financial Advisor Use by Blacks, Hispanics Rebounds: Allianz Life

Part of the reason, Allianz Life found, is that some Americans of color have different financial concerns from others. For example, 38% of Black and Hispanic Americans list paying off credit card debt as one of their top three financial goals, compared with 30% of the total population. 

Forty-five percent of the overall sample, but only 36% of Black respondents, said saving enough and making plans to live a comfortable retirement is one of their top three financial goals. And 31% of Black Americans said leaving a legacy for their family was one of their top three goals, compared with 23% of the total population.

“The data are telling us that one size does not fit all when it comes to what people are looking for in financial advice,” Walker said. “Now more than ever, it’s critical for financial professionals to approach their clients with an open mind and really listen to their concerns.” 

When asked about topics they have not discussed with a financial advisor but would like to, 78% of Black, 77% of Hispanic and 69% of Asian Americans said they would like to discuss the possibility of unexpected, large expenses, compared with 56% of the total population. 

Seventy-seven percent of Black, 73% of Hispanic and 70% of Asian Americans reported that they would like to discuss how the rising cost of living will prevent them from enjoying retirement, as opposed to 59% of the total population. 

Similarly, 77% of Black, 79% of Hispanic and 62% of Asian Americans would like to find out more about navigating Medicare and health insurance and making the right health care choices, compared with 54% of the total population. 

“These results show the need for a more holistic approach to providing financial planning strategies,” Walker said. “By definition, that means getting to know your clients better, and using a planning process that takes into account life needs that might fall outside the realm of traditional retirement strategies.” 

Allianz Life said diverse populations of Americans can benefit from professional financial advice. In response to a survey question about what might make them more likely to work with a particular financial professional, 23% of Black Americans said they would like to work with an advisor who has “similar characteristics to me such as similar age, gender or race.”