Welcome to The Times in Plain English   Click to listen highlighted text! Welcome to The Times in Plain English

Banks Reaching Out to Latinos

December 31, 2011
Plain English Version

The 50.5 million Hispanics living in the United States are becoming a target for banks. Only 10 percent have individual retirement accounts (IRAs); 24 percent have 401 (k) or thrift accounts.

From The Wall Street Journal

By comparison, 35 percent of non-Hispanic whites have IRAs or Keoghs, and 45 percent have 401(k)s.

Experts say there are several reasons:

  • immigration status
  • lack of access to retirement plans
  • reliance on families for support in retirement
  • savings for family events such as weddings rather than retirement
  • traditional savings programs such as “tandas.”

The also point out that lower income families with retirement funds borrow from those funds. Tax penalties for doing so are not great. Nearly one-third of Hispanics had outstanding loans against retirement accounts in 2007, compared to 20 percent of whites.

Even higher income Latino families had the least amount saved for retirement compared with black, whites and Asians.

Banks are educating Hispanics at the workplace about the value of savings. They are hiring more Latino staff and working with Hispanic community groups. This is good business for banks.

The Wall Street Journal

 

 

Print Friendly
Share

In Brief

Slow Down on that Heartburn Drug

A new study adds to the findings that taking heartburn drugs creates risks.

The study says that some drugs can lead to a heart...

New Ways to Think About Treating ADHD

New studies show many people with ADHD are drawn to new and exciting experiences. They can be very impatient and restless with routine activities.

This...

Sepsis: A Killer You Want to Know More About

Sepsis is not a disease like cancer. It is a reaction your body may have when it fights infection. A doctor explained, “Your body...

Freezing, Thawing, Refreezing: What are the Rules?

You can save yourself a lot of trouble and possible illness. Follow these rules.

Archives

Dictionary
  • dictionary
  • English Dictionary

Double click on any word on the page or type a word:

Powered by DictionaryBox.com
Click to listen highlighted text!