Black, Hispanic, Latina Women Grow Generational Wealth

A higher number of Black, Hispanic, and Latina women are incorporating investing strategies to grow wealth, shows findings from J.P. Morgan Wealth Management’s Diverse Investor Study.

The study found that 51% of Hispanic and Latina women respondents and 46% of Black women respondents began investing outside of an employer-sponsored retirement plan less than five years ago, compared to 24% of all respondents. Seventy-four percent of Hispanic and Latina women and 69% of Black women credited building generational wealth as their motivation to start investing.

Black women were also likelier to show their support for women-led investments. According to findings, 59% of Black women investors said it’s important that the companies their investing in be women-owned—twice as high as investors surveyed overall (28%).

The findings show that more than half of younger investors in these groups would rather take an active role in selecting stocks, bonds, or index funds that comprise their portfolio, compared to 45% of Black Gen Xers and Baby Boomers, 46% of Hispanic and Latino Gen Xers, and 37% of Hispanic and Latino Boomers.

“Consistently women, and in particular diverse women, are motivated to build wealth to create more opportunities for their children and families,” said Kristin Lemkau, CEO of J.P. Morgan Wealth Management. “They understand in a time of changing markets that saving isn’t enough. They also need to invest to have their money make money.”