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Financial advancement amongst H ispanics

Financial advancement amongst H ispanics. Table of contents Current knowledge Article 1 Article 2 Article 3 Article 4 Article 5 Summary References. Current Knowledge Empirical information only Never see Hispanics at bank Never see Hispanic name on investment accounts

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Financial advancement amongst H ispanics

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  1. Financial advancement amongst Hispanics

  2. Table of contents Current knowledge Article 1 Article 2 Article 3 Article 4 Article 5 Summary References

  3. Current Knowledge • Empirical information only • Never see Hispanics at bank • Never see Hispanic name on investment accounts • Hispanics seem to drive older vehicles • Hispanics never seen at financial seminars

  4. Article 1Latinos Become Key Market for Financial-Service Firms • Hispanic income 45k vs 66k national avg • Stock ownership low • 80% of multicultural growth will come from middle-class Hispanic population • 4 times as many Hispanics haven’t saved for retirement as Whites. • Key hurdles • Paperwork requirements of bank • Lack of financial education and services in native language • Banks cautious to reach out in uncharted territory. Percentage not saving for retirement

  5. Article 2READY FOR RETIREMENT? • General lack of financial planning amongst Hispanics despite planning on using savings as primary source of income for retirement • Cash rich investment poor • Lack of education on how to budget and use money and credit • Hurdles • Mistrust of advisors • Scared of banks due to currency fluctuations in home country • Would rather spend money on ‘concrete’ objects than invest and possibly lose • Language barrier

  6. Article 3Investing in Funds: A Quarterly Analysis --- Financial Advisers: Reaching Out to Latinos --- Firms factor in Hispanic culture in striving to hit the right note • Fastest growing population, but least likely to invest • Retirement a foreign concept • Hispanics expect family to take care of them • Hispanics look to community leaders rather than professionals for advice • Hispanics most likely to misuse retirement accounts and pull money out early • Jobs with no retirement plans and low wages contribute to problem

  7. Article 4Financial Futures.. • Financial texts need to be in spanish • Immigrants don’t have stock markets in their countries so they don’t understand them • Investing difficult due to lack of cash flow • Mistrust of banking – only 37% of Hispanics have bank accounts • Latinos not on financial institutions radars so they don’t get literature sent to them • Very rate of college graduates • Attitude that children will take care of them in retirement • Very few Hispanics in financial industry to help industry understand challenges

  8. Article 5U.S. Racial Wealth Gap Remains Huge --- Despite Booming Economy, Disparities Didn't Alter In the Course of the 1990s • Racial divide in net worth is significant • Gap reasons: • Discrimination • Job opportunities • Access to credit • Differences in ways $ invested • Levels • Inheritances are lower for Hispanics • Education levels

  9. Conclusions • Hispanics still far behind white counter parts • Largest contributing factors: • Smaller starting points from inheritances • A culture that hasn’t ever saved for retirement and relies on their children to take care of them • Fear of the banks due to stability in native countries • Lack of financial literature in spanish • Lack of understanding their culture by the banking and investment community due to lack of Hispanics occupied in the financial industries • Poor educations • Fear of the market since no markets exist in their native countries • Different priorities for money

  10. Conclusions • Solutions • Print Spanish financial literature • Employee Hispanic employees so the culture can be better understood • Target Hispanic students with financial programs • Increase resources to fund college educations for Hispanics • Work with community leaders to encourage Hispanics to seek professional banking and investing help • Make paperwork requirements for banks and investment firms less stringent to allow more Hispanics to save and invest

  11. References Eduardo Porter and Kathryn Kranhold.  (2003, October 23). Latinos Become Key Market for Financial-Service Firms. Wall Street Journal  (Eastern Edition),  p. C.1.  Retrieved November 24, 2011, from Wall Street Journal. (Document ID: 428588261). Kenig, G. (2001). Ready for Retirement?. Hispanic, 14(1/2), 28. Jaime Levy Pessin.  (2011, October 5). Investing in Funds: A Quarterly Analysis --- Financial Advisers: Reaching Out to Latinos --- Firms factor in Hispanic culture in striving to hit the right note. Wall Street Journal  (Eastern Edition),  p. C.15.  Retrieved November 24, 2011, from Wall Street Journal. (Document ID: 2475689511). DOMINGUEZ, R. (1999). Financial Futures. Hispanic, 12(1/2), 38. By Yochi J. Dreazen.  (2000, March 14). U.S. Racial Wealth Gap Remains Huge --- Despite Booming Economy, Disparities Didn't Alter In the Course of the 1990s. Wall Street Journal  (Eastern Edition),  p. A2.  Retrieved November 24, 2011, from Wall Street Journal. (Document ID: 50995793).

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