Affluent African Americans Are Shown to be Wealthier Than the Overall Affluent Market

RHINEBECK, N.Y., July 18 /PRNewswire/ — 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.

About Phoenix Marketing International:

Phoenix Marketing International is now the 38th largest market research firm in the country, according to the 2006 American Marketing Association’s (AMA) Honomichl 50 Report. Founded in 1999, Phoenix has grown substantially through acquisition and customer retention, working with many Fortune 500 companies. Phoenix partners with the largest companies in the financial services, consumer package goods, automotive and travel, leisure & entertainment industries worldwide. In addition to its industry expertise, Phoenix has dedicated analytical groups in advertising and brand analytics, multicultural expertise and direct marketing list optimization. Phoenix offers a unique combination of industry expertise and consulting services, combining primary and syndicated marketing research expertise with database analytics and modeling proficiency. The company has offices in New York, Tampa, Miami, New Jersey, Connecticut, Boston, Detroit, Delaware, Maryland, and Los Angeles.

For more information please contact:

Mark Boles
Vice President, African American/Urban Research
(781) 556-1011
mboles@accesscag.com

Michelle Barile
(845) 876-8228 x 310
Michelle.barile@phoenixmi.com