Affluent Women of Color More Likely to Invest in 2020
The COVID-19 pandemic has wreaked havoc on the finances of many women, but affluent Black and Latinx women were almost four times more likely than white women to capitalize on market volatility and start investing, new research shows.
Nineteen percent of affluent Black and Latinx women—those with at least $150,000 in investable assets—surveyed by J.P. Morgan Wealth Management in October said they started investing this year in order to take advantage of the pandemic-induced market volatility. That compared with 5% of white women, according to the research report this month from the private wealth manager.
“It’s clear affluent Black and Latinx women are working harder to sustain their wealth, but they’re also confident about their financial futures,” Dr. Kelli Keough, head of digital and client solutions at J.P. Morgan Wealth Management, said in a statement. Seventy-five percent of Black and Latinx women felt optimistic about their financial goals over the next 12 months, compared with 50% of white women, the survey found.
Despite that confidence, though, more than half of affluent Black and Latinx women still felt investing was more challenging for them due to their race, the survey said. More than 20% told researchers they didn’t feel investor services fit their needs or they had a bad experience, while only 7% of white women felt the same, J.P. Morgan said.
Among the Black and Latinx women who began investing, 78% said they used online educational resources, apps, or TV shows to help direct their investments, compared with 47% of white affluent women.
Among the broader group of 1,375 affluent women investors polled, 60% had parents or caregivers who invested their own money, and 55% recall discussing the importance of investing with their family growing up.