Following the U.S. Supreme court ruling overthrowing the federal Defense of Marriage Law (DOMA), LGBT investors reported feeling more optimistic than other investors about the country's economic outlook and their own personal finances, according to a special edition of UBS Investor Watch.
This optimistic outlook is visible in both LGBT investors' long-term perspective (67% v. 57%) and their mid-term view (63% v. 49%) of the economy compared to other investors. Regarding their own personal finances, 59% of LGBT investors said they were extremely or very confident they would meet their financial goals, compared to 52% of other investors.
However, while many LGBT investors feel that the DOMA decision would have a positive impact on their financial security (48%), the LGBT community still has more personal financial concerns than investors as a whole. Some of those concerns are unique to their community, such as being able to find LGBT-friendly long-term care facilities, and marriage equality.
This dichotomy between an optimistic view about personal finances and significant personal financial concerns may explain the contradiction of LGBT investors reporting they have a higher appetite for investment risk profile other investors (25% v. 16%), yet their actual asset allocation shows them to act more conservatively, holding more cash (26% v. 22%) than other investors."LGBT investors are more optimistic than other investors about both the U.S. economy and their own personal finances, likely in part due to DOMA," said Emily Pachuta, Head of Investor Insights, UBS Wealth Management Americas (WMA). "But we also see that LGBT investors are more worried about the personal financial issues they share with other investors like having enough money set aside for retirement. Plus they have additional concerns that are unique to the LGBT community such as being able to find an LGBT-friendly long-term care facility when they get older."