Your Clients of Tomorrow: How to Attract Hispanic and Latino Investors

In addition to boosting the diversity of your practice’s client base, connecting with Hispanic and Latino investors allows you to tap in to a market ripe for growth. According to the U.S. Census Bureau, the Hispanic and Latino community is the fastest-growing segment of the U.S. population.¹ T. Rowe Price research² shows that this diverse group is actively seeking professional help to prioritize financial goals, help their kids get ahead, and build generational wealth.

• 78% of Hispanic and Latino investors say they want a financial professional to “custom design” a plan for them.
• 64% say they want to know as much as possible about investing topics.
• 43% say they want a “coach” to manage some of their investing.
• 37% say they began investing after starting a family.

Attracting new Hispanic and Latino investors is a huge opportunity, considering that Pew Research says only 28% of their households own stocks³ and just 8% own mutual funds,⁴ according to the Investment Company Institute.

Research shows that the Hispanic and Latino community is an economic powerhouse that contributes $2.3 trillion annually to U.S. economic activity. To better illustrate this diverse group’s economic influence, consider this: If the U.S. Hispanic and Latino community were its own country, its gross domestic product (GDP) would rank as the 8th largest GDP in the world.⁵

Their increasing economic clout creates a demand for financial advice. But despite their growing economic might and propensity for saving, Hispanic and Latino investors still lag far behind white investors in owning financial assets—leaving this untapped market ripe for growth. Nearly half (48%) of Hispanic and Latino women and 38% of Hispanic and Latino men say they do not own any financial assets, including risk assets such as stocks, bonds, mutual funds, exchange-traded funds, real estate, or cryptocurrency.⁶

1. Discuss ways to save and invest using the bucket approach for key objectives, such as a college fund for their kids or saving for their retirement. The Hispanic and Latino community reports needing help prioritizing their financial goals more than other diverse groups.

2. Market yourself as a financial coach—someone who will empower them to invest, educate them in personal finance matters, and be part of a trusted team helping them navigate major life events.

3. Discuss how you can help them forge a brighter future for their kids, a financial goal that ranks high on Hispanic and Latino investors’ wish lists. 37% of Hispanic and Latino investors intentionally began investing after starting a family—evidence that improving their children’s lives is particularly important.

4. Drive home the importance of investing to reach long-term goals. T. Rowe Price research found that 65% of Hispanic and Latino investors “felt confident” they were saving enough for the future, and 96% of those saving for their golden years contribute to a 401(k). However, the small percentage of Hispanic and Latino families that own stocks or mutual funds indicates a need to educate them on proper asset allocation, given their age, risk tolerance, and time horizon.

5. Try to make a personal connection that builds trust and demonstrates your commitment. T. Rowe Price research found that Hispanic and Latino investors want a financial professional who is a "good fit" by their side on their financial journey.

Actively targeting the still largely untapped Hispanic and Latino community can help boost your bottom line and broaden the diversity of your client base. Connect with this sizable group of future investors to open the door to a new pool of clients.