New Study by Hispanic Executive and Morgan Stanley Unveils Insights into Latino Wealth Journey
The new study, conducted in collaboration with Semilla Multicultural, shows Emerging Affluent Hispanics/Latinos seek financial education and expertise to build their wealth through real estate and entrepreneurship
CHICAGO—The biggest opportunity within the wealth accumulation journey for Hispanics/Latinos lies with Emerging Affluents, according to a new report The Latino Wealth Journey: Understanding How to Expand Multigenerational Wealth Accumulation from Hispanic Executive and Morgan Stanley’s Institute for Inclusion (NYSE: MS).
The research study, created in collaboration with Semilla Multicultural, explores the concept of wealth perception and behavior through diversifying investment portfolios beyond the predominant real estate and entrepreneurial mindset. More than six hundred High Net Worth (HNW) and Emerging Affluent (EA) Hispanic/Latino individuals responded to surveys addressing their financial journeys toward multigenerational wealth.
Building wealth for personal and family well-being is a priority across all ethnicities, generations, small business owners (SBOs) and investor cohorts, including EA and HNW Hispanic/Latino Investors. Wealth provides financial independence (28 percent) and creates the freedom and stability to care for family (19 percent), with 90 percent of EA Hispanic/Latino investors focused on investing now to build multigenerational wealth.
“What’s often overlooked in discussions about wealth-building and financial independence is the growing influence of Hispanic and Latino investors on the American economy. It’s crucial that companies understand how to engage and support these investors, as they are driving the momentum behind multigenerational wealth and long-term financial planning for their families and communities,” said Pedro A. Guerrero, Guerrero Media CEO and Publisher of Hispanic Executive. “This is why we were so proud to work with Morgan Stanley’s Institute for Inclusion to drive a greater understanding of the Latino wealth journey, particularly within the Emerging Affluent and High Net Worth segments.”
Wealth goals not only center around supporting their family’s personal well-being (96 percent) but also emphasize sharing financial knowledge with children and the next generation to help ensure future financial independence (85 percent). The motivations of EAs are centered on responsibility and honoring their family’s hard work (63 percent).
“Our findings highlight that the Emerging Affluent Hispanic/Latino investor community is strongly motivated by the desire to create financial stability for their families and future generations,” said Ileana Musa, Managing Director, Head of Sales–Private Banking Group, Morgan Stanley Private Bank, National Association. “This multigenerational focus reflects the values of responsibility, hard work, and collective progress that drive their wealth-building decisions.”
The study also found:
- The top barrier to building wealth for EAs is limited financial education (77 percent), while the top barrier for HNWs is growing up in a household with limited funds (60 percent)
- 60 percent of Hispanic/Latino investors rely on financial advisors, with EAs placing a higher value on culturally informed advisors than HNWs
- 83 percent of respondents who think investing concepts are somewhat/very difficult said they’d be likely to invest in the future if investing was explained
- 84 percent of Latino SBOs are comfortable with investing, but the biggest barriers for accessing capital are not knowing how to access public/private programs for minority-owned SBOs (31 percent) and not knowing where to start (27 percent)
- 87 percent of respondents consider real estate an investment to build wealth, with 45 percent of respondents owning at least one property and 39 percent owning two or more properties.
“The Emerging Affluent Hispanic/Latino investor values education not only as a path to personal success but as a foundation for community uplift and mentorship,” said Gabriela Alcantara-Diaz, founder and president of Semilla Multicultural. “Their growing interest in real estate investment reflects both an appetite for wealth-building opportunities and an understanding of the importance of cultivating strong networks within and beyond their community. Navigating the complexities of these investments highlights the crucial role of financial professionals in guiding them to make informed decisions that can build lasting wealth.”
More here to view the full study
Study methodology
The Morgan Stanley Hispanic/Latino investor surveys were conducted among Guerrero’s Hispanic network audience of Hispanic Executive, The Alumni Society, and NextGen Collective, in collaboration with Semilla Multicultural. Candidates were Hispanics/Latinos with a net worth of more than $500K—termed High Net Worth (HNW)—and Hispanics/Latinos with a net worth of $100K–$500K—termed Emerging Affluent (EA). The surveys were composed of a qualitative component, which consisted of twenty in-depth interviews, ten in each of the two cohorts. These interviews were conducted between October 24, 2023, and December 1, 2023. Subsequently, a ten-minute quantitative survey was conducted among an additional 613 HNW and Emerging Affluent respondents between January 8, 2024, and March 8, 2024.
About Semilla Multicultural
Semilla Multicultural is an independent, strategy-driven creative agency with over two decades of expertise in marketing to upwardly mobile multicultural Hispanic audiences. We specialize in crafting tailored strategies that authentically resonate with this dynamic demographic, helping clients thrive in an increasingly diverse America. Our approach is designed to cultivate meaningful growth across diverse platforms. semillamulticultural.com
