I grew up in a family of business owners in the northern Mexico border town of Matamoros. However, my parents’ entrepreneurial journeys couldn’t be more different from each other. After graduating from Texas A&I University (now Texas A&M), my father ran a successful business for decades before exiting and furthering his career in engineering.
My mother, by contrast, ended her formal education in the seventh grade to begin working at a local pharmacy and help financially support her family. One of eight siblings, she married my father at the age of 18 and worked as a stay-at-home mom.
My parents’ divorce years later served as my mother’s entrepreneurial launching pad: With enough money for only one month of rent at a local strip mall, and using lessons learned from running day-to-day operations at the pharmacy, she started a business manufacturing nursing scrubs, school uniforms and more.
In 2021, 21 years later, she exited her business, finally financially on track with her goals for retirement. It should come as no surprise that she made me formally pitch to win her business as investment adviser a few years back.
While Hispanic culture isn't monolithic, my mother’s story echoes those I hear in conversations with clients and the larger community: Many became entrepreneurs out of necessity as other paths to wealth were not available to them.
Fortunately, that has shifted. Advances in technology, innovation and educational opportunities have prompted many to proactively choose entrepreneurship. New research from the Latino Business Action Network and Stanford Latino Entrepreneurship Initiative’s 2021 State of Latino Entrepreneurship Report indeed confirm that “in the past 10 years, Latino-owned businesses have started at a faster rate than other groups — a 44% growth rate — compared to only 4% for non-Latino-owned firms.”
For me, being an educator is the best part of being a financial adviser because it can be a way to help “unlock” wealth. In UBS’s 2022 Invest to Advance report, while 78% of Hispanic and Latino high-net-worth investors find the financial industry more inclusive that it was for their parents, roughly the same number believe there’s still work to do around personalized, clear discussions. Driven by the adage, “a confused mind will always say no,” I take the time to cut through financial jargon and educate my clients on solutions to pursue their unique financial needs and goals.
For many, family comes first. The Invest to Advance report also notes 85% of Hispanic and Latino high-net-worth investors consider providing family financial support a strong part of their culture. In fact, according to the report, almost six in 10 investors provide financial support to family members outside the U.S., which includes everything from day-to-day expenses, such as transportation and food, to business ventures, a down payment on a home and education costs. Overwhelmingly, they are focused on generational wealth creation through passing on inheritance.
From my family’s firsthand experiences and my work advising entrepreneurs, I offer three important considerations for business owners.
Cash is not always king. I often see business owners choosing to hold their hard-earned cash in traditional checking accounts, savings accounts or in the comfort of their home. Bank accounts like these typically offer lower interest rates that are not enough to combat rising inflation. Over the last 10 years, the U.S. dollar had an average inflation rate of 2.58% per year, producing a cumulative price increase of 29.04%. The good news is that the financial ecosystem offers potential tools to business owners that can provide a low-risk alternative to letting your working capital sit in cash. If your money isn't working for your business, it’s working against it.
Information is the most valuable commodity. Fortunately for us, information can be found everywhere — 24 hours a day, seven days a week. Entrepreneurs should seek it out and ask plenty of questions. Financial advisers are eager and willing to provide options and opportunities designed to meet your financial interests. It’s important to find an adviser who's willing to explain things to you in a way you understand.
Expand your financial relationships. Financial services firms are not one-size-fits-all. Business owners have unique needs, and it’s important to select firms and advisers focused on supporting entrepreneurs. Consider expanding your financial relationships to gain access to new ideas and tailored solutions to help manage your day-to-day priorities, support your employees and plan for your business.
As we celebrate the rich cultural achievements Hispanics have brought to the United States, I'm proud to play my own role in helping business owners and entrepreneurial families make meaningful legacies. Through this work, I am always reminded of my own family’s journey. My mother and entrepreneurs like her are the foundation of my practice and serve as an inspiration to all who are reimagining the wealth journey for themselves and future generations.
Jorge Andres Garcia Jr. is the North Texas assistant market head at UBS Wealth Management USA and serves multiple Texas communities including Waco, San Antonio, Austin and the Dallas/Fort Worth Metroplex.
Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.
Whichever path you go down, act now while you're still in control.
Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.
“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.
Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.
Streamline your outreach with Aidentified's AI-driven solutions
This season’s market volatility: Positioning for rate relief, income growth and the AI rebound
