Hispanic Heritage Month - Key issues and financial trends impacting the Hispanic community

Empowering Financial Success: Key Insights for the Hispanic Community

Although National Hispanic Heritage Month has just wrapped up, it remains important to continue celebrating the rich culture, history and contributions of Hispanic Americans year-round. This recent observance also serves as a timely reminder to address both the progress made and the challenges that still exist in financial planning and wealth building within this vibrant and diverse community. As we move forward, it’s crucial to keep these conversations going and take actionable steps toward closing the wealth gap.

As a financial advisor working with Hispanic clients, I have experienced firsthand that clients are more excited than ever to engage in a meaningful conversation about their relationship with money. Our Hispanic clients have a favorable outlook on the future and their earning capacity.? Most see it as an opportunity to have a generational impact on their family.

Simultaneously, I’ve observed a need in the industry for more Hispanic advisors. As the population of Hispanic Americans increases, so does the need for knowledgeable Hispanic advisors. Hispanic advisors understand the nuisances of the Hispanic family and can quickly build trust with those who know they have to plan, yet don’t know where to start.

This underscores the positive impact of having a financial advisor who understands and addresses the unique needs of a specific community. Here are a few key considerations for the Hispanic community as they look to strengthen financial security:?

Seek Bilingual Advisors and Resources

Navigating financial planning can be challenging when language barriers exist. Finding a bilingual advisor or tapping into multilingual resources can help bridge these gaps. When financial concepts are clearly communicated in a preferred language, it allows for a deeper understanding of savings strategies, retirement planning and long-term investment decisions. Today, many financial institutions and community organizations offer services in Spanish, making financial planning more accessible than ever.

Cultural Considerations

Cultural values and traditions play a significant role in financial decisions within the Hispanic community. Family-oriented financial practices, such as supporting extended family members and prioritizing communal financial goals, can influence budgeting and saving strategies. Additionally, there is often a strong emphasis on preserving wealth within the family and passing it down through generations. Our clients have a strong desire to build generational wealth. Most clients are empowered to take the role as the first person in the family to start that journey and be the changemaker.

Advisors who are attuned to cultural nuances of a community can offer more personalized advice, recognizing the diverse financial priorities and family dynamics that may influence financial planning.

Strengthen Financial Literacy

Community resources and financial literacy programs can also play a pivotal role. Engaging in workshops, online courses and other educational opportunities can help build a solid foundation in budgeting, saving and investing. Financial advisors can assist in connecting individuals and families with these resources, promoting better financial understanding and decision-making. I believe that when clients are given the right information they can make better decisions in the direction of their goals.

Exploring Non-Traditional Retirement Options

A recent Northwestern Mutual study revealed that Hispanic Americans have saved an average of $58,400 for retirement—nearly $30,000 less than the national average. This disparity underscores the importance of developing retirement strategies tailored to individual needs. An advisor who understands the unique situations of the Hispanic community can help craft the right strategies. For instance, the need for alternative retirement savings options such as Individual Retirement Account (IRA) or a Roth IRA or even relying on extended family support systems.

Though Hispanic Heritage Month has come to a close, it's a timely reminder to continue taking meaningful steps toward improving financial well-being in the community. With the right strategies and guidance, individuals and families can work toward a more financially secure future for generations to come.

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