Affluent LGBT investors are less confidence in their investment knowledge than their non-LGBT counterparts, according to a Spectrem study.
Just 15% of affluent LGBT investors consider themselves very knowledgeable about financial products and investments compared with 21% of non-LGBT respondents.
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As wealth level increases, so does confidence in one’s financial acumen. While 10% of affluent LGBT investors with a net worth of at least US$100,000 consider themselves very knowledgeable, that percentage doubles among Millionaire LGBT investors.
The same holds true for non-LGBT investors. Eleven percent of non-Millionaires consider themselves very knowledgeable about financial products and investments, compared with 22% of Millionaires and 41% of High Net Worth investors with a net worth of at least US$5 million.
The study found that perceptions of financial knowledge level out among LGBT and non-LGBT investors who profess to be fairy knowledgeable but still have a great deal to learn, 54% vs. 57%.
The largest discrepancy is found between High Net Worth investors, with nearly seven-in-ten LGBT respondents saying they are fairly knowledge with a great deal to learn compared with 52% on non-LGBT investors.
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By GlobalDataAs wealth level increases, so does the importance these investors place on financial knowledge. In a Spectrem study conducted last year, 88% of those with at least US$1 million net worth said that financial knowledge was "extremely important" or "important" to them, compared with 82% of those with a net worth between US$500,000 and US$1 million and 74% of those with a net worth of less than US$100,000.
The lack of confidence expressed by LGBT investors may be attributed to the relatively complex legal environment that impacts their legal rights and ownership of their assets. Gay marriage is legal in 17 states. Married same-sex couples living in one of these jurisdictions now have the identical rights, responsibilities, and obligations as all other married couples.
Nearly eight-in-ten (79%) of respondents said they are concerned about legislation regarding LGBT financial rights and opportunities, while two-thirds express concern about tax implications for themselves and their partner.
