A vivid memory I have of my grandmother stashing her savings under her mattress lives forever in my head. This wasn’t just a quirky habit - it was a deeply ingrained strategy, shaped by a lifetime of financial uncertainty. In our family, saving money meant physically keeping it close, hidden away from risk and instability.
I remember getting into a car accident, and my mother taking out her savings from the middle of a book to pay for the damages. This was our version of an emergency fund.
For many immigrants, the investing world is relatively new territory. We didn’t grow up talking about stock market trends or discussing the latest IPO. Instead, we valued tangible investments - assets we could see and feel, like gold, diamonds, rugs, real estate, and art. These were our safe bets, reliable stores of value that felt more concrete than the fluctuating numbers on a financial statement.
Yet, as wealth-building conversations evolve, so must our mindset toward money. Navigating financial planning requires not only understanding investment options but also recognizing the psychological and cultural influences that shape our approach.
The Psychology of Money and Risk Aversion
Money isn’t just currency - it’s emotional, deeply tied to our sense of security and stability. For immigrants, financial decisions are often shaped by past experiences: instability, economic volatility, and, in some cases, corruption in home countries. These realities create a general distrust of financial institutions, including the stock market.
Cultural norms also play a role. Many immigrant families prioritize saving over investing, focusing on financial security rather than speculative growth. The idea of “risk” is different when money has historically been scarce or uncertain. Physical assets feel safe: Real estate, gold, and jewelry carry intrinsic value that’s visible and enduring. Stock market investments feel intangible.
Family responsibilities outweigh personal financial goals. Many immigrants prioritize taking care of extended family, influencing financial decision-making beyond individual wealth accumulation.
Understanding these deep-seated beliefs is critical when working with an advisor. After all, the financial decisions we make aren’t just numbers on a spreadsheet - they’re reflections of our past experiences, values, and priorities.
Why Representation Is Key
When you hire a financial advisor, you’re not just choosing someone to manage your investments - you’re opening up about your financial fears, goals, and vulnerabilities. You’re stripping away the polished image you present and admitting what keeps you up at night which, often, is money related.
Yet, one of the biggest barriers to financial planning for immigrants is a lack of representation.
As of 2023, only 2.9% of all CFP® professionals were Latinos, as per CFP Board. This means few advisors truly understand the immigrant experience - the cultural nuances, the financial fears, and the emotional weight tied to money. Without this understanding, traditional financial advice can feel distant and disconnected, failing to resonate with the very people who need guidance the most.
So, how do we move forward? How do we bridge the gap between past money fears and future financial growth?
Shifting the Immigrant Mindset Toward Wealth Growth
1. Embrace Financial Education: Understanding investment principles is empowering. Learning about stocks, retirement accounts, tax-efficient investing, and compound interest helps immigrants see new possibilities beyond cash under the mattress mentality.
2. Build Trust in Financial Institutions: Trust takes time, but working with an advisor who understands your background can make all the difference. Whether it’s navigating a career pivot, planning for retirement, or dealing with inheritance, finding an advisor who respects your values will make financial planning far more approachable.
3. Diversify Investment Strategies: Balancing tangible assets (real estate, gold, jewelry) with long-term market investments allows immigrants to build wealth sustainably, without abandoning cultural financial preferences.
4. Recognize Wealth as an Opportunity for Impact: Money isn’t just about accumulation - it’s about legacy. Many immigrant families view financial success as an opportunity to support loved ones, contribute to their communities, and give back in meaningful ways.
An Invitation to Take Control of Your Financial Future
If you’ve been overwhelmed by the idea of financial planning, this is your sign to take the first step. When you work with an advisor who understands your mindset, the conversation becomes easier, more productive, and deeply rooted in trust.
Your background, experiences, and values matter. Whether you’re facing a major life transition like a career pivot, retirement, inheritance, or divorce, having someone by your side who appreciates how you view money can offer clarity and confidence in your next financial move.
You don’t have to navigate wealth-building alone. It’s time to shift the mindset, build trust, and take control of the financial future you deserve.
Representatives do not provide tax and/or legal advice. Any discussion of taxes is for general informational purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax or accounting advice. Clients should confer with their qualified legal, tax and accounting advisors as appropriate. Some health insurance products offered by unaffiliated insurers. Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC.
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