Affluent African Americans Wealthier Than the Overall Affluent Market
Affluent African-Americans hold an approximate average of $1.3 million in investable assets, compared to $992,000 in investable assets of the overall affluent market, according to findings released July 18 from Phoenix Cultural Access Group and Phoenix Marketing International's Affluent Marketing Practice.
Affluent African-Americans also have higher household incomes, slightly higher total net worth and total assets at an average of eight-years younger, 46, then their overall affluent counterparts, who are54.
The age has declined in recent years, from 49 years old to 46years old, indicating opportunities to tap into this growing market of people who are also far less likely to be retired, according to Rhinebeck, NY-based Phoenix Marketing International .
The Phoenix Affluent Marketing Service program is a continuously fielded survey of affluent and high net worth households throughout the United States. It produces a twice-yearly summary of affluent and high net worth household investment, financial and affluent lifestyle behaviors and attitudes.
Data for this survey was drawn from the 2004-05 AMS program, consisting of 7,842 interviews with affluent and near affluent households.
The findings indicate that Affluent African-Americans are more bullish than the average affluent investor, more consolidation-oriented and place more importance on having a financial plan.
Nevertheless, only 52 percent have designated a primary professional advisor, compared with nearly two-thirds of all affluent households. African Americans appear to be much less satisfied with their advisors and are less loyal than their affluent counterparts.
African Americans are also interested in much more conservative products such as CDs, REITs and insurance.