Study finds that African-Americans are more bullish than affluent investors

July 29, 2006) According to findings from Phoenix Cultural Access Group and Phoenix Marketing International's Affluent Marketing Practice, affluent African Americans hold approximately an average of $1.3 million in investable assets compared to $992,000 in investable assets of the overall affluent market.

In addition, they show higher household incomes, slightly higher total net worth and total assets at an average of eight years younger (46) then their overall affluent counterparts (54). The age has actually declined in recent years (49 to 46) indicating opportunities to tap into this powerful and growing market, who are also far less likely to be retired.

The findings indicate that Affluent African-Americans are more bullish than the average affluent investor, are more consolidation-oriented and place more importance on having a financial plan. Nevertheless, only 52% 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.

"Although Affluent African Americans seem to have higher expectations from their financial advisors", states Mark Boles, Vice President of Phoenix Cultural Access Group, "the opportunity to present service is there since most want to have a financial plan in place even more so than their overall affluent counterparts". African Americans are interested in much more conservative products such as CDs, REITs and insurance.

The Phoenix Affluent Marketing Service (AMS) program is a continuously fielded survey of affluent and high net worth households throughout the U.S., and provides a twice yearly summary of affluent and high net worth household investment, financial and affluent lifestyle behaviors and attitudes. Data for this article was drawn from the 2004-05 AMS program, consisting of 7,842 interviews with affluent and near affluent households. The margin of error is +/- 2.5 percentage points at the 95% level of confidence.

Phoenix Marketing International, founded in 1999, has grown substantially through acquisition and customer retention, working with many Fortune 500 companies. The firm partners with the largest companies in the financial services, consumer package goods, automotive and travel, leisure & entertainment industries worldwide.


Go to Target Market News homepage

 

Click here to read more

________________________

The African-American
Book Publishing Authority

Now in its seventh year of publication, Black Issues Book Review is the only nationally distributed magazine devoted exclusively to covering the latest news and reviews on black books. BIBR also provides up-to-date news on forthcoming author events, publications, conferences, shows and exhibits.
Want this issue? Get it with your new subscription.
Click Here
________________________


________________________


 12th Annual Edition Available 
Latest 'Buying Power' report shows black consumers spending more on home life

As the American economy continues to move sluggishly, African-American households are curtailing their spending in many categories, including food, clothing and basic household items, while investing more in home repair, home entertainment and consumer electronics. Although they are trimming back, black consumers are still spending more than their white counterparts on most of these products.
Story and statistics continued
_________________________

  SUBSCRIBE TODAY! 


The trade publication for
in-depth coverage of Black
Consumer Marketing
and Media news