J.P. Morgan Wealth Management Wealth Advisor Helen Molloy provides insight on how we can develop healthy habits to better build and help manage wealth over time.
It happens every year: January comes, and we all vow to become the best version of ourselves in the next 365 days. While fad diets and trending workout regimens tend to fall off around now, creating healthy financial habits is a resolution that pays off in the long term. We sat down with Dallas-based J.P. Morgan Wealth Management Wealth Advisor Helen Molloy, who’s been in the business for more than 20 years, to learn what we can do in 2024 to better build our wealth over time.
Resolution #1: Don’t go at it alone
First and foremost, the paramount ingredient is working with an advisor you trust, and who understands your goals as well as the market.
“It's very much a relationship business. Working with someone that you relate to makes a big difference,” Molloy says. “Having one-on-one contact with your financial advisor is important. I like to meet with my clients in person. Being with someone in the same room can help you get a better feel for who they are.”
Once you find an advisor you feel comfortable with, they can help you lay out your financial objectives, time horizon and risk tolerance, and make sense of the market, so that you can make more confident investment decisions. They can offer an unbiased perspective and communicate it in a way that suits your preferences. If you're married, having regular conversations with your spouse and your advisor will help you stay aligned on your goals.
Molloy says it’s important to find a wealth advisor you can trust and feel comfortable with.
“A lot of times you need somebody to help you understand why the markets are moving up and down,” Molloy says. “I can talk to you about how current events might be impacting your portfolio. I can also act as the ‘CFO’ for your family and take something off your plate, bringing together tax, legal, insurance and estate planning experts to take a more holistic approach to building wealth.”
Right now, many of Molloy’s clients are asking her about a possible decline in interest rates.
“Over the past 12 to 18 months, the Federal Reserve has been working to normalize interest rates,” she says. “We believe we’re nearing the end of the tightening cycle, but that process is ongoing. That’s definitely been top of mind this past year, and it will be in 2024, as well. I always try to meet clients where they are, depending on their needs and how they like to work with a financial advisor.”
Resolution #2: Develop a personalized plan
Advisors help clients formulate a plan of action to work towards their financial goals. If you don’t already have a blueprint for building your wealth long term, 2024 might be a good time for you to sit down with your advisor and develop one. If you don’t work with a financial advisor, now could be the time to consider whether it makes sense for you to start. Whether your goal is to retire comfortably or build some extra discretionary funds for vacation, your advisor can assist in creating a strategy that helps you stay on track.
“We're like the quarterback—we're going to help you develop your plan and drive it, leading coordination efforts with other specialists you work with,” Molloy says. “We tailor our recommendations to each individual and build a framework for you to work towards your goals.”
Your wealth advisor can help you develop a financial plan that can help align you with your goals.
There’s no financial algorithm that works for everyone. Markets are constantly evolving, and there may be nuances depending on where you live. For example, if you’re based in Dallas where Molloy works, your taxes could look significantly different than if you live in California. A financial advisor will take all those personal circumstances into account to help you create a tangible game plan.
“We help our clients identify what they need and what their goals are,” Molloy says. “Once we determine that, we then look to determine the appropriate level of risk based on what they've shared with us and their comfort level.”
Resolution #3: Methodically invest
Part of your long-term plan should include consistently contributing to your investment accounts, according to Molloy. “If you're starting out, decide on an amount to invest, whether you do it monthly or quarterly, and stick to it,” Molloy says. “Add to your account very methodically with recurring, fixed contributions, and your investments will compound and potentially grow over time. Setting automated contributions is a good way to regularly invest without needing to proactively set time to do it.”
Molloy says that consistently contributing a set amount to your investment accounts can help grow your wealth.
Then, with your advisor, you can hone in on what is anticipated to happen in the market in the following years. Molloy’s view is that it can sometimes be advantageous to focus on the future of the market.
“Where you can outperform is when you are able to anticipate how the economy will evolve, identify the sectors and companies that will benefit from that environment, and make a focused decision based on that,” Molloy says.
Resolution #4: Have patience and trust your plan
Once you have your plan in place, it’s all about taking the long-term approach—not checking investments too regularly or freaking out about a decline one day.
“We live in a world of instant gratification,” Molloy says. “Your emails are answered immediately. Every phone is answered immediately. But investing is different. It’s a long-term, ongoing process that evolves as markets and the economy evolve. You’ll make adjustments over time.”
Because analysts, macroeconomists and financial advisors are looking at what they believe will happen across many different time horizons, having patience with your investments and keeping your eyes on the long-term goal tends to pay off.
Once you’ve made your plan, Molloy notes that it’s important to remain focused on your long-term goals.
“Investing is not intended for cocktail conversation,” Molloy says. “You're not looking to make the one-hit wonder so that you can say, ‘I made 100% on XYZ stock.’ That's not the goal. It's a very methodical and very thought-out process.”
Your advisor will help you stay updated on where your investments stand.
“We're constantly checking in with our clients to help them stay on the right path, so we can help them work towards what they want to achieve,” Molloy says.
By implementing these healthy financial habits, you can kick off 2024 with more confidence in your long-term success, no matter where this year takes you. And remember: Financial goals change over time. This might be the year to re-analyze them.
J.P. Morgan Wealth Management financial advisors are dedicated to educating their clients and helping them reach their goals. Throughout our “Build Your Wealth” article series, these advisors will provide valuable insight into ways you can help maximize your financial future.
Take the first step by connecting with an advisor near you at this link.
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J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC. Certain advisory products may be offered through J.P. Morgan Private Wealth Advisors LLC (JPMPWA), a registered investment adviser. Trust and Fiduciary services including custody are offered through JPMorgan Chase Bank, N.A (JPMCB) and affiliated trust companies. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMS, CIA, JPMPWA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co.
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