J.P. Morgan Personal Advisors is a new product offered by J.P. Morgan.
It caters to clients who may not have hundreds of thousands to invest but want access to a financial advisor, though is readily available to those with larger investments as well.
Personal Advisors makes it more affordable to reach your financial goals, with affordable advisory fees.
Before getting started, here is what you should know.
What Is J.P. Morgan?
J.P. Morgan Wealth Management is a business of J.P. Morgan Chase, with various investment offerings to help you manage your wealth.
J.P. Morgan Personal Advisors is a remote investment business, giving clients access to a financial advisor from home via video or phone.
The purpose of the J.P. Morgan Personal Advisors product is to help customers reach their goals.
Who Are J.P. Morgan Personal Advisors?
J.P. Morgan’s Financial Advisors work with clients on various short- and long-term goals, from buying a house to saving for retirement.
All J.P. Morgan Financial Advisors are fiduciaries, meaning they have your best interests at heart. They don’t work on commission, trying to talk you into investments that don’t fit your financial needs.
They’ll match you with portfolios built by experts and continue providing advice via phone or video to help you accomplish your goals.
What To Expect from J.P. Morgan Personal Advisors:
- Personalized Planning: Talk to your advisor about the most important things to you, whether it’s getting out of high-interest debt, saving for a house, or getting ready for retirement. They’ll create a plan based on your goals and the best way to achieve them whether the market is strong or volatile.
- Matched with Portfolios: Personal advisors will match you with pre-built portfolios to help you reach your financial goals. They’ll also check in with you at least annually to check on your progress and assess your current strategies.
- Holistic Wealth Management Services: You can manage all of your accounts, including investments and loans, in one app on your own or with the help of your advisor.
- One-on-One Service: When you schedule a session with a financial advisor, you’ll receive one-on-one service. There’s no guarantee you’ll work with the same advisor after you open your account. (you work with the same advisor through the financial planning, account opening, and funding process)
- Frequency of Access: You have access to an advisor as often as you need. There isn’t an additional fee to work with an advisor. The annual advisory fee on the assets under management covers the cost of your access to an advisor over the phone or via video chat.
- Dedicated Point of Contact: You will have access to a dedicated advisor if you invest $250K or more.
Additional Types of Products J.P. Morgan Specializes In
Like most investment firms, J.P. Morgan offers different types of products and portfolios to match your financial goals. Your portfolio should match your risk tolerance, timeline, and financial goals.
The products you choose should also align with your abilities and desire to manage your accounts. For example, J.P. Morgan offers self-directed and automated investing accounts, providing options when managing your investments.
J.P. Morgan Wealth Management Accounts
When choosing a J.P. Morgan Wealth Management account, decide how much involvement you want.
The answer to this question will help determine the right account for you.
1. Self-Directed Investing Accounts
As the name suggests, you manage your self-directed investing accounts. You can have a taxable investment account, traditional IRA, or Roth IRA.
Many assets don’t have trading commissions or transaction fees, including stocks, ETFs, options, and mutual funds. In addition, there’s no minimum balance to start, and you can manage your accounts online on your PC or mobile device, making it easy to access your portfolio from anywhere.
J.P. Morgan offers a variety of asset options, including the following:
- Stocks
- ETFs
- Mutual funds
- Fixed-income securities
- Options
2. Automated Investing Accounts
J.P. Morgan’s automated investing accounts are robo-advisor accounts. First, you answer some questions about your goals, timeframe, and risk tolerance. Then, the robo-advisor does the rest, matching you with an expert-built portfolio.
You can view all your accounts in the dashboard, including J.P. Morgan banking products and external accounts.
J.P. Morgan automated investing accounts offer four portfolio options:
- Conservative – 25% equity (US and international) and 73% fixed-income ETFs, 2% cash. This portfolio is for investors with a short timeline, low-risk tolerance, and at least three years to invest their funds.
- Moderate – 50% equity (US and international), 48% fixed-income ETFs, 2% cash. This portfolio is for investors with a longer timeline, slightly higher risk tolerance, and whose primary focus isn’t on income.
- Growth – 75% equities (US and international) and 23% fixed-income ETFs and 2% cash. This portfolio is for investors with a high-risk tolerance and isn’t concerned about income but the growth potential of riskier investments.
- Aggressive – 90% equities (US and international) and 8% fixed-income ETFs, 2% cash. This portfolio is the riskiest and requires the highest risk tolerance. These portfolios change often and have little income potential, but the rewards are higher when assets perform well.
In addition, there is a Glide Path strategy for some retirement accounts that sets out a route for your portfolio that aligns with the amount of risk you should be taking over time—shifting from riskier, higher-growth investments when you’re younger to lower-risk, income-producing investments as you near retirement.
Rebalance of a Portfolio
J.P. Morgan’s automated investing features automatically rebalance your portfolio with changing market conditions to keep you on track with your established strategy.
- Frequency: J.P. Morgan’s robo-advisor rebalances your portfolio as often as necessary. No one can predict how the market will perform. If your portfolio gets off track, you can expect it to be reallocated to help you reach your short and long-term goals.
3. Retirement Accounts
Whether you choose self-directed, automated investment accounts, or Personal Advisors, J.P. Morgan offers retirement account options for all three.
You can choose between a traditional or Roth IRA:
- Traditional IRA – You get the tax benefits in the year you contribute. Your contributions are pre-tax, and your contributions and earnings grow tax-deferred. When you withdraw the funds in retirement, you pay your tax bracket in the year you withdraw the funds, which for most is lower than their tax bracket when they contribute.
- Roth IRA – With a Roth IRA, your contributions are post-tax, but your contributions and earnings grow tax-free. When you withdraw the funds in retirement, you don’t pay taxes on any funds as long as they’ve been in the account for at least five years before removing them.
There isn’t a minimum balance requirement to open a self-directed IRA, but you’ll need at least $500 to open a robo-advisor account.
4. Private Client Advisors
J.P. Morgan Private Client Advisor is a service provided by J.P. Morgan.
The service offers comprehensive financial planning and investment management services.
J.P. Morgan Private Client Advisor allows you to work one-on-one with an advisor in your local community, who can develop a customized investment strategy based on your financial goals and risk tolerance.
J.P. Morgan Personal Advisors Fees
J.P. Morgan Personal Advisors charges the following asset-based advisory fees.
- 0.6% on assets of $25k to $249,999k
- 0.5% on assets of $250k+
The advisory fee is charged monthly, and the recommended minimum balance for a Personal Advisors account is $25k.
Pros and Cons
Working with J.P. Morgan Chase and their new Personal Advisors Product, you’ll experience many pros and cons. Here’s what to consider.
Pros
- There are many portfolios to be matched to
- Receive a financial plan built with your financial advisor
- Virtual check-ins with your advisory team
Cons
- The advisors aren’t CPAs or CFPs
- They recommend a minimum investment balance of $25,000
Signing Up and Getting Started
It’s easy to sign up and start investing with J.P. Morgan Personal Advisors.
- Contact J.P. Morgan: First, contact an advisor by calling 1-833-930-4515 or completing their contact form.
- Advisors Get To Know You: The first step is getting to know you, your financial situation, and your goals. Your personal advisor will discuss your short and long-term goals, priorities, income, assets, and spending habits. When they have a clear picture of your financial life, they can help you create the financial plan that enables you to achieve your goals.
- Match You With a Portfolio: After determining your goals, risk tolerance, and timeline, J.P. Morgan Personal Advisors will match you with an expertly built portfolio. They’ll choose the portfolio based on your provided information, so the more details you provide, the better.
- Automatic Rebalancing: J.P. Morgan’s product automatically rebalances your portfolio to keep you on track with your goals. However, you can check in with a personal advisor anytime to discuss your portfolio’s performance, goals that changed, or any other questions or concerns.
- Use J.P. Morgan Wealth Plan: J.P. Morgan Wealth Plan is a new platform that allows clients and advisors to collaborate. You can track the progress of your portfolio and schedule meetings with a personal advisor at any time.
Frequently Asked Questions
Is J.P. Morgan a full-service provider?
J.P. Morgan is a full-service provider. They offer self-directed, automated investing, Personal Advisors or access to a Private Client Advisor. They provide clients with many ways to achieve their goals including working one on one with an advisor or the option of working with a team of advisors.
Is J.P. Morgan trustworthy?
J.P. Morgan has an A rating with the Better Business Bureau. They treat their clients fairly and offer many different programs to appeal to various clients.
How do I know if J.P. Morgan Personal Advisors is right for me?
To determine if J.P. Morgan Personal Advisors is right for you, decide which type of service you want from an advisor. Personal Advisors offers clients the ability to work 1:1 with a dedicated advisor at $250K and above. But, if you’re looking for an affordable way to access advisors and reach your financial goals, J.P. Morgan Personal Advisors offers a great option starting at $25K.
Does J.P. Morgan Personal Advisors have a Sign-up Bonus?
J.P. Morgan doesn’t have a signup bonus for the Personal Advisors program. However, Chase Bank has several sign-up bonuses. If you’re looking to bank and invest in the same place, you can take advantage of some rewarding Chase Bank promotions
Who are J.P. Morgan accounts best for?
J.P. Morgan has something for everyone. If you’re a current Chase bank customer and prefer to have all your assets in one place, J.P. Morgan Chase offers a holistic view of your accounts, making it easy to transfer money and see your overall net worth in one place.
If you want control of your investments, a self-directed investment account is a good option; and if you want a hands-off approach then Automated Investing is right for you. And if you want access to a team of advisors virtually, Personal Advisors is a good choice for you.
Because the account minimums are low, $0 for self-directed and $500 for automated, it’s easy for most people to open an investment account at J.P. Morgan.
Conclusion
The J.P. Morgan Personal Advisors product is a great way to have advisor service without the hefty fees.
So whether you’re just starting your investment journey or want something with fewer fees but plenty of support, check out J.P. Morgan Personal Advisors.
J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (“J.P. Morgan”), a registered broker dealer and investment adviser, member FINRA and SIPC. Millennial Money is a publisher of J.P. Morgan, (“Publisher”). The Publisher will receive compensation from J.P. Morgan if you provide contact details to speak with a J.P. Morgan representative. Compensation paid to the Publisher will be up to $500 per completed contact form. Compensation provides an incentive for the Publisher to endorse J.P. Morgan and therefore information, opinions, or referrals are subject to bias. J.P. Morgan and the Publisher are not under common ownership or otherwise related entities, and each are responsible for their own obligations. Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.
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