JP Morgan Asset Management is a company that offers some interesting retirement plans and investing services. The company offers tailored plans that should suit most people, regardless of their level of risk tolerance or risk aversion. People of any income level can save with JP Morgan.
The JP Morgan Retirement plan offers savers the opportunity to ensure that their contributions are invested in a qualified default investment alternative. This is usually a target date fund that is based on the saver’s date of birth. If you do not have the time, knowledge or desire to make specific investing choices then this is a good idea because it ensures that your resources are spread out to protect you from market volatility, while at the same time having the potential to provide decent returns.
JP Morgan Retirement Plan Pros
The JP Morgan Retirement, and associated other products, such as the Chase Private Client, offer investing options for people of all income levels, from entry-level jobs, through to $500,000 or more held in investments. The idea behind the plan is that you can customise it to suit your preferences.
JP Morgan offers an online knowledgebase with lots of information about employer matched retirement plans, defined contributions and retirement planning. In addition, you can manage the plan online, view statements and get access to a huge amount of information about how your investments are going. If you are a hands-on type of investor then this is a huge benefit. If you prefer to just let your investment grow then you can simply sit back and relax and let JP Morgan handle it. JP Morgan offers a choice of dynamic growth funds, equity income funds, growth advantage funds, intrepid value funds, large cap growth funds, mid cap value funds, US, international and emerging market equity funds, bonds, high yield investment, total returns, and tax aware plans. There are also “Smart Retirement” plans as well as conservative funds, to suit all kinds of investor.
The online knowledge base includes information about sponsors and plan design, retirement legislation and regulations, target date investing and more. This information will help you to pick the best plan and sponsor.
The YTD return on JP Morgan funds at the moment varies, but some of the high yield funds have achieved 4% returns and are paying dividends of close to 6%. This figure is of course subject to change, but it does compare favorably with rival funds from other providers.
JP Morgan Retirement Plan Cons
JP Morgan sales advisors are encouraged to work hard to seal the deal and push their products to get customers to day yes. This does not mean that they behave in an unethical way, or that their products are bad, however the enthusiastic sales pitches are something that you should be aware of if you want to investigate their products. Make sure that you have a clear idea of the questions you want to ask, and that you do not sign anything until you have spoken to your advisors.
The JP Morgan Retirement account is intended to be a “safe” place for you to put your money. If you want to get the absolute best returns, then you may want to invest in something higher risk that promises better yields. If you start saving early, and are going for an employer matched plan, then the JP Morgan retirement is a good option, but people who are less risk averse could make their money work harder for them elsewhere.
JP Morgan’s funds have generally performed well, but the markets are quite volatile, and emerging markets in particular are struggling at the moment. This means that you do have some risk of your fund losing value in the short term. If this is a concern for you then you may want to consider investing in something that offers a lower, but guaranteed return.
Everyone should plan for their retirement. The JP Morgan retirement is a decent choice for most savers. You can pick the kind of fund that you are interested in, and will be given options to re-enroll or change plans at a later date in some cases. Of course, there is some risk with every plan, and the value of any investment could go up as well as down. So, before you choose what kind of plan you want to join you should speak to a qualified financial advisor. Do not put off saving for your retirement. The sooner you start putting money away, the greater the returns you will see and the better off you will be when the time comes for you to retire. Pay yourself first and secure your future so that you can reward yourself with a relaxing time once you leave work for good.