Latinos and Financial Firms

Below is a link to his very informative website:

Valle Consulting

Francisco J. Valle is the president of Valle Consulting. He helps his clients solve their most pressing Hispanic-related issues. Valle is the author of How To Win The Hispanic Gold Rush™, a book on Hispanic marketing and cultural values. Below is a link to an excellent article about Latinos and Banking.

The Takeaways:

• Translation does not work
• Cultural Relevancy is essential
• One word  “FAMILY”
• Financial literacy is an important component

 Below is a link to an excellent article:

Resources

http://www.choosetosave.org/resources/

An entire page of Spanish communication materials designed to educate with respect to plan participation and operation.  Good stuff!!!!

Who are we talking about?

The National Council of La Raza (http://www.nclr.org) is the nation's largest civil rights organization advocating for opportunities for Hispanic Americans.  The statics in the article linked below are similar to what we have been reporting but an interesting footnote addresses exactly which demographic group we are talking about.

"The terms “Hispanic” and “Latino” are used interchangeably by the U.S. Census Bureau and throughout this document to refer to persons of Mexican, Puerto Rican, Cuban, Central and South American, Dominican, Spanish, and other Hispanic descent; they may be of any race."

That said-this is a broad cross section of cultures and it may be appropriate or necessary to design communication materials for a specific subgroup of Latinos or Hispanics.

Latinos Falling Short on Retirement Preparation

From the National Latina/o Law Student Association

http://wp.me/pv8vR-5M

THE IMPORTANCE OF SOUND RETIREMENT PLANNING

Compared to other demographic groups in the U.S., the Latino population is considerably younger.  The median age of Hispanics is approximately 27.3 years of age, compared to the overall U.S. population average of 36.4 years.  In addition, the HI and ASR study notes that Latinos have a longer life expectancy than their non-Latino counterparts.  This means that retirement savings will need to be larger for Latinos, who will have to rely on retirement savings for a longer period of time.  The need for sound retirement planning, therefore, becomes all the more important. 

Factors Impacting Low Retirement Savings

Researchers from Florida State and Ole Miss (Go Rebels!) have conducted a study showing the socio-economic factors contributing to low retirement savings and point out that in order to facilitate retirement savings we need to focus on financial literacy and varying personal philosophies as opposed to a one size fits all approach to retirement savings education.  Pretty scientific stuff but also makes some excellent points worthy of consideration.



Factors Contributing to Low Retirement Savings

Summary Plan Description Rules

-summary-plan-description-regulations

401(k) Plans in Living Color

401(k) Plans in Living Color

DOL Report on 401(k) Participation Rates of Latinos

IMPROVING RETIREMENT SECURITY FOR LATINOS: OVERVIEW OF RACIAL AND ETHNIC DISPARITIES AND IDEAS FOR IMPROVEMENT was presented at the ERISA Advisory Council

Disparities for Women and Minorities in Retirement by Leticia Miranda Associate Director, Economic and Employment Policy Project National Council of La Raza on September 1, 2010 is an excellent report with respect to participation rates among Latinos working in the United States.  A copy can be found on the DOL website or via the hyperlink below.

IMPROVING RETIREMENT SECURITY FOR LATINOS

Latinos: The New 401(k) Market Opportunity?

Latinos: The New 401(k) Market Opportunity?  By Ruthie Ackerman

With Latinos being the fastest-growing segment of the United States workforce, it would seem that capturing the Latino 401(k) market would be big business for plan providers. Yet the Latino population has remained elusive, choosing not to take part as often as Whites or Asians when employer-sponsored retirement plans are offered, and dipping into their 401(k) for loans, significantly reducing their retirement savings.

Foreign Language Employee SPD Requirements

If as of the first day of a plan year the plan covers either (a) fewer than 100 participants, 25% or more of whom are only literate in a single common foreign language, or (b) 100 or more participants, of whom 10% or more (or 500 if less) are only literate in a single common foreign language, then if the distributed SPD is not also provided translated into that common foreign language, the English SPD must be accompanied by a notice written in the common foreign language offering assistance and clearly setting forth the procedures to be followed to obtain such assistance.