Not your parents’ financial advisor: Breaking down wealth planning misconceptions

The world of growing and managing wealth is changing. Digital tools are empowering consumers to manage their future. Educational resources are accessible and easier to digest, and people can invest online, in some cases, with very low fees.

The next generation of innovations in wealth management will come from a new level of empowerment: a seamless integration between the ever-smarter digital tools in our hands, with access to professional human help for when life gets complicated.

J.P. Morgan Wealth Management is making these innovations a reality for our clients. But technology is only as good as its application, and there are still a few misconceptions holding people back.

Myth: ‘Wait for the perfect economic conditions to invest’

The S&P 500, an important indicator of the equity market, is up 16.45% in 2025 as of market close on December 3, after returning 23.31% in 2024. But market volatility is normal, and the favorable investment returns are typically achieved through time in the market, not timing the market. In the past 20 years alone, the S&P 500 annualized 11.09%. Missing just 10 of the market’s best days – which tend to occur within less than one month of the 10 worst days – would have cut that annualized return roughly in half. Looking at 2025, seven of the 10 best days have occurred within two weeks of the worst days, according to J.P. Morgan Asset Management.

Unfortunately money is emotional and it can be difficult to remain calm if one’s assets were to shrink by 25%. This is where a smart planning app can help track the progress toward our objectives, whether it's retirement, a child’s education or purchasing a home. And a financial advisor easily accessible by chat or video can coach clients to keep emotions out of their investment decisions.

Myth: ‘Wealth planning is only for the rich’

Many people think they need to reach a certain salary or net worth to start investing, or that they need to pay off debt first. But when it comes to investing, starting earlier can be an optimal strategy, even with a small amount of money.

For example, if someone were to invest $100 per month starting at age 20 and earn 6.25% in interest, they’d have $301,456 at age 65 if they let their investment compound monthly. However, if they were to invest $100 per month under the same conditions but starting at age 30, they’d have $152,656 at age 65. Everyone’s situation is unique. If someone has low-interest debt like a mortgage, a student loan or a car loan, it could be helpful to consider paying off the debt while investing at the same time.

Myth: ‘Wealth planning requires long, complex, in-person meetings’

While that might have been the case for older generations and some people who prefer to work in-person today, smart wealth apps can now help clients get started. And to be clear – I do not mean the gamified stock-picking apps that steal our attention with quick dopamine hits.

I mean a smart planning tool that guides clients to outline long-term goals or a digital money coach that helps build personalized money habits to reach those goals.

These tools can be more powerful by connecting users directly to an advisor who can further personalize the recommendations and offer live help by chat or video.

Personal finances are not one-size-fits-all. It’s encouraging to see how wealth is becoming more flexible to accommodate life changes, with technology to plan and manage wealth right from a mobile device. But human interaction – even if not in person – will remain an integral part of that equation. The intersection of digital and the human will be powerful for clients.

J.P. Morgan Wealth Management is excited to be at the forefront of this transformation, as we embrace this era of accessibility and help democratize financial health for millions of Americans.

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