To veteran financial planner and business manager Louis Barajas, the underrepresentation of Latinos in the profession ties into the U.S. racial wealth gap. And efforts to change those long-standing disparities offer universal lessons for every financial advisor.
Processing Content
Barajas will publish his latest book, “Finances Con Corazón: The Latino Journey to Financial Dignity,” next week. In the Q&A below, he discussed what motivated him to write it, how the industry looks different from when he became a certified financial planner in 1990 and why he chose a workbook-style structure for the new work. His perspective as a longtime industry trailblazer and his opening assertion that Latinos are “the fastest growing economic force in this country” stand out in the book, as do the connections he draws between money, wealth and psychology.
“Finances Con Corazón is the culmination of everything I have learned over the last four decades,” Barajas writes. “It brings together strategy and heart. It honors where we come from but challenges us to grow beyond the limitations that have held us back for too long. It is a guide to help individuals and families move from survival to stability, from stability to success, and from success to legacy. And it is a reminder, one I want you to carry with you through every page of this book, that financial dignity is not out of reach.”
In addition to being the author of this and several other books, Barajas has founded or co-founded at least four businesses: an eponymous financial education and consulting firm, a registered investment advisory company called International Private Wealth Advisors, a financial coaching and insurance planning firm called Corazón Financial & Insurance Services, and a film and music business management company called Business Management LAB. In addition, he’s one of the three stars on “Opportunity Knocks,” a PBS reality show about financial challenges.
Barajas told Financial Planning that when it comes to representation in wealth management, he’s seen some progress over his years in the profession. But the numbers remain stark. Hispanic and Latino people make up approximately 20% of the U.S. population, yet fewer than 3% of CFPs identify as Hispanic or Latino. The wealth gap is similarly striking: Those groups’ median wealth was 22% that of white Americans’ in 2022 dollars.
The below email interview has been lightly edited for length and clarity.
READ MORE: Why advisors do and don’t recommend Trump accounts
A book with a heart in its structure
Financial Planning: Based on the listings in the book, this is now your sixth book that you have written alongside all of your speaking at industry conferences and running your businesses. What made you want to write another book, and what should our audience know about “Finances Con Corazón?”
Louis Barajas: This book grew out of something I have witnessed over the past almost 40 years as a financial planner. I have worked with hundreds of individuals and families from all walks of life, but I have spent much of my career serving Latino families who were often overlooked by the financial services industry. What I discovered is that financial success is rarely just about money.
It is about beliefs, culture, family, identity, fear, hope and dignity. I wrote “Finances Con Corazón” because I wanted to create more than another personal finance book. I wanted to create a framework that helps people understand not only what to do with their money, but why they make the financial decisions they do. The book introduces the concept of financial dignity, which I define as having enough resources, knowledge, confidence and freedom to live life on your own terms.
While the book is written through a Latino lens, the principles are universal. It is ultimately a book about helping people transform their relationship with money and create a better future for themselves and their families. While the book is written for consumers, I also believe it can serve as a valuable resource for financial planners and other professionals who volunteer their time in underserved communities. One of the challenges advisors often face when providing pro bono services is finding culturally relevant materials that resonate with the families they are trying to serve.
My hope is that “Finances Con Corazón” becomes a practical tool that professionals can use to facilitate conversations, build trust and help Latino families take meaningful steps toward financial dignity. In that sense, the book is not only a resource for consumers, but also a resource for the profession.
FP: How did you come up with this workbook structure, which invites readers to fill out the book while reading? Why did you think it was important to structure the book this way rather than a traditional book?
LB: Over the years, I realized that information alone rarely changes behavior. Most people already know they should save more, spend less, invest consistently and plan ahead. The challenge is not a lack of information. The challenge is implementation.
I wanted readers to become participants rather than spectators. The workbook format encourages reflection, self-discovery and action. Instead of simply reading about financial planning, readers are guided through exercises that help them examine their values, beliefs, goals, habits and financial decisions. In many ways, the book mirrors the process I use with clients. Real transformation happens when people stop consuming information and start engaging with it personally. I wanted the book to feel less like a lecture and more like a conversation with a financial coach.
READ MORE: The complete guide to starting an RIA
A financial revolution
FP: What does the “Latino Economic Revolution” look like? Is it the closing of the wealth gap, political changes, equal opportunities to access capital or all of the above? How long could it take to get there?
LB: Many Latinos today feel uncertainty about their place in the national conversation and whether their contributions are fully recognized. I believe one of the most powerful ways to strengthen our collective voice is through economic empowerment.
When families own businesses, purchase homes, invest, create jobs and build generational wealth, they are not only improving their own lives, they are helping shape the future of the communities and country they call home. To me, it means creating a generation of Latino families who build wealth intentionally, own homes and businesses, invest consistently, pass assets to future generations and participate fully in the economic opportunities available in America.
Closing the wealth gap is certainly part of it. Expanding access to financial education, capital and professional advice is part of it as well. But perhaps most importantly, it requires a shift in mindset from financial survival to financial ownership.
The encouraging news is that many of the ingredients are already present. Latinos are one of the fastest-growing entrepreneurial groups in the country, and our economic contribution continues to expand every year. How long will it take? Generational wealth is built over generations. I believe meaningful progress can happen within the next decade, but the larger transformation may take 20 to 30 years. The important thing is that the movement has already begun.
READ MORE: A contrarian Social Security strategy
The meaning of progress
FP: You write very movingly about your path into this industry from a young age and opening the office in East L.A. and still often being the only Latino in the room at industry events. But there are small gains in percentages of Latino CFPs, and you spoke at the SER Conference, which is continuing to grow with the support of some prominent firms in the industry and a lot of amazing work by the organizers. To what extent do you think the industry has changed since those days when you started out in the field?
LB: The industry has made meaningful progress.
When I became a CFP professional in 1990, I was often the only Latino in the room at conferences, board meetings and industry gatherings. There were very few visible role models who looked like me, and even fewer conversations about serving diverse communities.
Today, there is far greater awareness of the importance of expanding access to financial planning. Organizations like ALPFA [the Association of Latino Professionals in Finance and Accounting], SER and many leaders throughout the profession have worked hard to create pathways for new planners from underrepresented backgrounds.
That said, there is still work to do. Latinos represent nearly 20 percent of the U.S. population, yet remain significantly underrepresented within the financial planning profession. We need more advisors, more firm leaders, more educators and more mentors who reflect the communities we serve.
What gives me optimism is that I am no longer the only Latino in the room. Increasingly, I walk into conferences and see talented young professionals who are building successful careers and helping transform the profession for the next generation. That is real progress.
