Latino success - Mundo Latino: news events

Latino Leaders: The National Magazine of the Successful American Latino, August-Sept, 2003

The wealth of affluent Hispanics is growing faster than that of the general community, according to Merrill Lynch.

"The number of Hispanic households earning more than $100,000 a year grew 126% between 1991-2000, compared to 77% for the general American population," said Ms. Subha Barry, first vice president and head of Merrill Lynch's multicultural and diversified business development group.

"And it is expected to continue," she said. "This is one reason why Merrill Lynch is expanding its Hispanic wealth management focus, which has grown strongly in the US over the past few years, around the globe," she said.

"One reason for this continued growth--during a downturn in the stock market--is that many wealthy Latinos are small business owners who choose to reinvest in family businesses rather than stocks and bonds," said Mario Paredes, director of Hispanic business at Merrill Lynch's multicultural and diversified business development group.

He said this growth was despite the fact that Latinos have traditionally used financial product and services less than the general population.

Paredes noted there are some 3.7 million affluent Hispanics in the US, It is estimated they will have a combined buying power of $292.4 billion by 2006, equivalent to almost two-thirds of the $452 billion buying power for the 37 million people of the overall Hispanic market.

Nearly two thirds of affluent Hispanic households are in three states: California, Texas, and New York.