First-generation Asian immigrants in the U.S., particularly those who came here in recent years, require a distinct approach when it comes to wealth management, according to one advisor who serves such clients.
Managing money for first-generation immigrants to the U.S. from Asia “can be tricky,” Sean Yu, managing director of The Sean Yu Group at Morgan Stanley Private Wealth Management, tells Forbes. Yu manages wealth for first-generation immigrants from China and Taiwan.
When Yu launched his business in 2003, many of his clients were “doctors living the American dream,” he tells the publication. Now, he’s attracting immigrants who arrive to the U.S. with “loads of money ready to be invested” — primarily Chinese nationals who want to diversify through U.S. markets, according to Yu, Forbes writes.
“Immigrants to this country are more used to brokerage-style advice from Singapore or Hong Kong,” Yu tells the publication.
To help them adapt to wealth management in the U.S., Yu tells them that his group is “more like an endowment, looking at asset allocation and risk among varied factors,” he says, according to Forbes.
In addition, such clients typically expect a lot from their financial advisors, according to Yu.
Chinese investors, for example, are used to large returns, Yu tells the publication. Because it is “much harder to make money here, compared to in China,” Yu tries to orient them toward determining what’s important for them and “about adding community value with their money through a donor-advised fund or similar type of vehicle,” he says, according to Forbes.
Yu’s group oversees $900 million from around 100 households and has a $5 million minimum investment requirement, the publication writes. Their average client has around $30 million to $50 million in net worth and gives Yu’s practice around $10 million to oversee, according to Forbes.
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