Black, Hispanic and Latina women have gained confidence in their investing knowledge in recent years and are investing to build generational wealth, according to new research from J.P. Morgan Wealth Management. J.P. Morgan surveyed 1,000 investors to uncover investing trends within Black, Hispanic and Latino communities.
“Everyone should be building their wealth and J.P. Morgan is deeply committed to better serving all investors at every stage. Understanding the different needs, attitudes and priorities of every group is a key part of this work. We believe the most important thing is to outline your goals and get on a plan to achieve them,” said Kristin Lemkau, CEO of J.P. Morgan Wealth Management.
Here are 4 key takeaways from the J.P. Morgan Wealth Management 2023 Diverse Investor Study:
Black, Hispanic and Latina women respondents have gained confidence in their investing knowledge in recent years.
- 68% of these Black women investors and 52% of Hispanic and Latina women investors say they are more knowledgeable about investments and retirement planning compared to five years ago
Most Black, Hispanic and Latina women respondents started investing to build generational wealth and support their family and friends.
These Black, Hispanic and Latina women investors say a motivation for why they started investing was:
- to build wealth to pass down to future generations (68% for both)
- to support my family and friends (66% and 70%)
Despite ongoing volatility, women across races stay consistent with investing. Men are more risk-taking and active investors.
- 83% of women investors surveyed are investing the same amount or more in their brokerage accounts than in 2022, compared to 74% of men
- Male investors surveyed are more likely to describe their investing strategy as “risk-taking” (29% compared to 15% of women investors) and “active” (35% compared to 25% of women investors)
- Male investors surveyed are twice as likely to check the status of their brokerage account once a week or more (34% compared to 17% of women investors)
Overall, investors surveyed aren’t letting economic anxiety influence their long-term strategy.
- 88% of investors are concerned about inflation
- 79% of investors are concerned about a recession, yet 63% of investors say that talk of a recession does not affect their financial decisions
- 74% of investors would not consider selling after a 20% dip in their investment portfolio
- 83% of investors are contributing more or the same amount to their retirement accounts and 77% to their brokerage accounts compared to 2022
In Phoenix, the survey showed:
Black, Hispanic and Latino investors in Phoenix are confident in their financial situation and encourage their community to invest
- 72% are confident about their knowledge of finances, specifically regarding investments and retirement planning
- 71% say they’re more confident about their knowledge of finances compared to five years ago
- 72% have a plan for how they’ll work towards their financial goals
- More than half (56%) encourage friends and people in their community to start investing or learn more about investing
- 60% say they would not consider selling after a 20% dip in their investment portfolio
- More than half (55%) of Black, Hispanic and Latino investors in Phoenix say their financial situation is excellent or good
- More than half (56%) encourage friends and people in their community to start investing or learn more about investing
But they’re also facing challenges:
- 87% are concerned about inflation
- 72% are concerned about rising housing costs in the Phoenix metro area
- 72% are concerned about rising medical costs in the Phoenix metro area
- The overall price of goods is making it difficult for 62% of respondents to invest more
They’re investing with purpose and with future goals in mind:
- 75% feel it’s important for investments to have a positive environmental impact
- The majority of respondents said a primary motivation for starting to invest was to make sure they’re comfortable in retirement (76%) and to have more financial security (74%)
Building generational wealth priority
- 70% of Black, Hispanic and Latino investors in Phoenix say a motivation for why they started investing was to build generational wealth
“Our business and economy are stronger when it is more inclusive,” said Thelma Ferguson, Global Head of Diversity, Equity & Inclusion and Vice Chair of Commercial Banking at JPMorgan Chase. “Understanding the trends and habits of those communities that for so long have been excluded is an important step in making progress towards closing the opportunity and wealth gaps.”
J.P. Morgan Wealth Management is committed to expanding resources and access to investing in Black, Hispanic and Latino communities. Its “Building a New Legacy” local event series aims to create a space for Black, Hispanic and Latina women and their allies to learn about investing for their future legacy. Since kicking off the roadshow last year, the firm has hosted events in Atlanta, Chicago, Dallas, Detroit, Miami, Newark and Washington D.C. with more than 1,000 attendees.
Read more about the J.P. Morgan Wealth Management 2023 Diverse Investor Study findings here.
Methodology
The J.P. Morgan Wealth Management 2023 Diverse Investor Study was conducted May 30 to June 13, 2023. The results are based on a sample of 1,017 American adults aged 25+ with at least $25,000 in investable assets, including oversamples for Black, Hispanic and Latino Americans (390 White respondents, 287 Black respondents and 297 Hispanic and Latino respondents). Respondents were interviewed online in English and Spanish. J.P. Morgan Wealth Management was not identified as the survey sponsor.
About J.P. Morgan Wealth Management J.P. Morgan Wealth Management is the U.S. wealth management business of JPMorgan Chase & Co., a leading global financial services firm with assets of $3.9 trillion and operations worldwide. J.P. Morgan Wealth Management has ~5,100 advisors and ~$893 billion of assets under supervision. Clients can choose how and where they want to invest. They can do it digitally, remotely, or in person by meeting with an advisor in one of our more than 4,700 Chase branches throughout the U.S., or in one of our offices. For more information, go to www.jpmorgan.com/wealth and follow @JPMWealth on Twitter and J.P. Morgan Wealth Management on LinkedIn.
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