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The Difference Between Wealth Management and Asset Management

OK so now you've been at JP Morgan for about 25 years. Yes. So
and now you run one of the most important parts of JP Morgan which as I say is the asset and wealth management business for
people that aren't that familiar with wealth management. What actually is wealth management and how is that different than
asset management. Great question. The two are often used interchangeably. But but but there they have distinctions. Asset
management business is where we manage money on behalf of individuals institutions sovereign wealth funds pension funds.
We manage them in mutual funds. We manage them an ETF. We manage them in single stock single bonds hedge funds private equity and
the like. And that is the heart of the fiduciary business that we run here at JP Morgan. Wealth management is that plus
understanding someone's entire balance sheet. So for the individuals where we manage money we also help them with their
mortgage.

We help them with a loan that they might need. We help them with their basic credit card. And so wealth management is
trying to help someone with their entire life both their assets and their liabilities their planning their gifting the legacy
that they want to leave for their families. The 529 plans they need to prepare to get their kids to go through college. And
it's a great it's a great insight into people's you know entire journey. Now many organizations like J.P. Morgan to have wealth
management businesses some are bigger than some are smaller. But basically you're managing money for and doing other things for
wealthy people more or less.

Is that fairly right for wealthy people. Although you know many of the successful wealth
management firms today have figured out how to take all of those great learnings for what they do with very wealthy people and
also package them for people who are have their first paycheck. And they want to be able to save a little bit of money or want
to have access to things that maybe they wouldn't normally have. And so we've been able to take things like what we do for a
super wealthy family package it into a bite size where you walk into a chase branch and you're able to get some of that some of
the same advice.

And so it's it's I think it's opening up the world to be able to help people. And you know the most important
thing is to be able to save early. And if someone can be there to help you through that you know that's that's one of the most
important things. If you look at an average investment in the world if you just look over the past 20 years take a balanced
portfolio. It's about six point four percent average annual return for people that generally manage money. The problem is
most individuals actual return is less than 3 percent. So it's less than half of that. Why. Because they make emotional
decisions when markets are one way or another and they get caught up in the hype of things. And so it's super important to
have that advice as early on as we can give it. And I think you know that that's the rewarding part about about this business is
being able to try to help people through all of those different journeys that they have.

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