Home Business Up to 12% More Diverse Americans Used Financial Advisors To Grow Wealth in 2023 — How To Keep the Trend Alive

Up to 12% More Diverse Americans Used Financial Advisors To Grow Wealth in 2023 — How To Keep the Trend Alive

by Paul Morgan

According to the Allianz Life 2023 annual consumer survey, diverse Americans are re-engaging with professional financial advisors after a drop in 2022. The survey reveals that 36% of Black Americans reported having a professional financial advisor in 2023, up from 24% in 2022. Similarly, Hispanic investors saw an increase in working with a professional financial advisor, rising to 42% in 2023 from 35% in 2022.

The reversal in these numbers can be attributed to various factors such as market volatility, ongoing financial crises, rising interest rates, and inflation, which have made many Americans more concerned about their financial futures. Travis Walker, a business solutions and diversity consultant at Allianz Life, emphasizes the need to better serve diverse populations in the financial planning industry.

The survey also found that 23% of Black Americans, more than any other group, believe that having a financial advisor with similar characteristics such as age, gender, and race would make them more likely to work with a financial advisor. This preference is driven by the desire for an advisor who understands their needs, priorities, and preferences.

The survey also highlighted significant differences among diverse groups in the topics they would like to discuss with a financial advisor. For example, a higher percentage of Black, Hispanic, and Asian Americans expressed interest in discussing unexpected large expenses, the rising cost of living affecting their retirement, and navigating Medicare and health insurance. This data suggests that a more holistic approach is needed in financial advice, recognizing that retirement planning is not just about money but also about health, family, and building the desired life post-retirement.

To further increase diversity in financial advisor usage, Allianz suggests bringing more diverse groups into the career of financial professionals. By working with high school guidance counselors and colleges, including historically black colleges and universities, it is possible to raise awareness and interest among young people of color in pursuing this career. This would not only meet the growing need for financial professionals but also provide an opportunity for professionals of color to contribute to the financial security of their communities.

In conclusion, the survey findings highlight the increasing engagement of diverse Americans with professional financial advisors. It is essential to better serve diverse populations by understanding their preferences and needs. By providing advisors who share similar characteristics and expanding diversity within the financial planning industry, a more inclusive and effective approach can be achieved.

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