In this investment insight, we explore:

  • The financial implications of marriage equality.
  • The link between wealth and confidence.
  • How the LGBTQ segment is changing the investment world. 

“The Supreme Court decision means we can now plan for the future like anyone else,” says José, a 47–year–old designer who married his partner, Peter, in 2015, after Obergefell v. Hodges, the landmark U.S. Supreme Court decision that made same-sex marriage legal in all 50 states. “When I’m investing, I’m not a gay investor. I’m just an investor like anyone else, with my own questions and my own goals.”

José is just one of more than 11 million LGBTQ people in the U.S. today (4.5% of the population)¹ who now exert social, demographic, and economic influence like never before. According to recent estimates, the annual purchasing power of the LGBTQ community is $917 billion—slightly less than Hispanics ($1.3 trillion) and African Americans ($1.2 trillion), but greater than Asian Americans ($825 billion). Globally, LGBTQ consumers are spending in excess of $3.7 trillion, and their estimated household wealth worldwide is $5 trillion.

Yet for all of the legal and social progress that has positively impacted the LGBTQ community, research has revealed that LGBTQ investors are generally less confident and less diversified than their non-LGBTQ counterparts.4 How this could impact their long-term financial goals—and what some High-Net-Worth (HNW) and Ultra High-Net-Worth (UHNW) LGBTQ investors are doing about it—is the focus of this paper.

Please see important disclosures at the end of the article. 

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