Faith in the American dream is alive and well among four core minority demographics, according to a recent study commissioned by Northwestern Mutual.
But while most of the respondents believe they can and will achieve financial security, many say they have yet to achieve that goal.
See also: Minorities ill-prepared for retirement
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And few are using financial advisors to help actualize their dream of financial security.
Of the Asian American, Hispanic American, African American, and LGBT populations surveyed, 80 percent in total agreed with this statement: "The outcome of my life is determined by my own actions."
While self-determinism is high among the minorities surveyed, 50 percent of Hispanics, 72 percent of African Americans, 50 percent of the LGBT community surveyed, and 35 percent of Asian Americans say they have not achieved the level of financial security they believe is possible.
The clearest trend in the survey is the underutilization of RIAs in helping minorities close the gap between their financial dreams and their realities.
Only 17 percent of LGBT respondents work with a financial advisor, 16 percent of Hispanic and Asian Americans, and 14 percent of African Americans, according to the study.
"Working with a financial adviser is a first step to financial freedom. Everyone can benefit from working with a plan," said Kate Kane, president of Northwestern Mutual managing directors association.
The study did not provide data to explain why so few minorities currently seek financial advice.
But a study published by Edward Jones early in 2014 suggested minorities were underrepresented in the financial services industry, and that could be affecting the financial services industry's outreach to minorities.
For instance, the Hispanic and African American populations represent 17 percent and 13 percent of the total population, yet each segment represents 5 percent of financial advisors, according to the Edward Jones study.
But like younger earners with longer retirement investment horizons, minorities could be a strong source for organic growth, given how few currently utilize financial advice.
An earlier study by Allianz showed that same-sex couples with children reported a high-level of financial security, comparable to married couples with children in a traditional family structure.
Another study by the National Institute on Retirement Security found that minority households have substantially lower retirement savings balances than white households.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
