A generally underreported aspect of the Federal Deposit Insurance Corporation’s (FDIC) entering into a purchase and assumption agreement with JPMorgan Chase Bank in the rescue of First Republic Bank is that Chase also is able to absorb First Republic’s wealth advisory operations. According to the financial website AdvisorHub, First Republic’s Private Wealth business will be folded into JPMorgan’s advisory services.
The FDIC had announced that JPMorgan Chase Bank submitted a bid for all of First Republic Bank”™s deposits and most of its other assets. Those deposits totaled $103.9 billion. First Republic’s total assets amounted to $229.1 billion. The FDIC announced that First Republic Bank”™s 84 offices in eight states would reopen as branches of JPMorgan Chase Bank and that all depositors of First Republic Bank would become depositors of JPMorgan Chase Bank.
JPMorgan Chase’s financial advice and wealth management services through J.P. Morgan Asset Management, Inc., are well known in the financial community and beyond. Forbes magazine recently honored a private client advisor at J.P. Morgan Wealth Management, Hiral Shah, who is based in Mount Kisco.
Shah was named a 2023 Forbes Best-in-State Wealth Advisor. He was ranked number 18 among high-net-worth advisors in New York state outside of Manhattan. According to Forbes, as of June 30, 2022, Shah was managing nearly $800 million in assets.
“I’m definitely honored. This award is a symbol of my commitment to continuous improvement as an advisor and helping my clients work toward their goals,” Shah told the Business Journals. “Wealth management is a craft that is honed over time. Being awarded this distinction validates my effort and desire to offer the very best of my knowledge base and professional experience to the families that I work with in Westchester County and beyond.”
Shah said that receiving the award is unlikely to change anything that he does in the normal course of serving his clients and providing access to timely market research.
“I think the most important thing is picking up the phone and calling my clients. It’s very important that they know I’m here for them and they can lean on me for their guidance,” Shah said. “As an advisor I can help my clients navigate market volatility and stay focused more importantly on their long-term plan. I’m able to leverage the firm’s ample resources to serve my clients.”
Shah pointed out that so far this year J. P. Morgan has hosted 10 webcasts where strategists are able to directly present explanations of how current events and fiscal policy may have an impact on individual financial planning.
“For example, J. P. Morgan Wealth Management just hosted a client webcast earlier this year on how the Fed’s interest rate policy could affect clients’ financial strategy,” Shah said. “During this market volatility I remind my clients that market volatility is normal. Market swings can be painful but they’re just a natural part of investing and it’s important to avoid impulsive reaction and to stay focused on their long-term strategy.”
Shah pointed out that some of the stock market’s worst days have been followed by some of the market’s best days.
“If you take a look at the past 20 years, seven of the best days in the market happened within just about 14 days of the worst 10 days,” Shah said. “It’s very important to take that long-term view when the client is questioning the market or the plan. The amount of time that you’re invested in the market is one of the most important factors in growing your wealth. It’s about time in the market, not timing the market.”
Shah said that while everyone’s financial situation is different, having a plan for finances provides a roadmap to help keep things on track toward reaching goals.
“We always try to make sure that having a well-built long-term financial strategy can also help prepare the clients for market volatility,” Shah said. “Priorities change and it”™s very common that these priorities evolve over a lifetime and that’s why it’s important to regularly check financial strategy and adjust as needed. We always try to update the plan as our clients’ life or goals shift.”
Shah said that among the events that can affect financial goals are marriage, divorce, the arrival of children, home purchase and changes that affect liquidity.
“My clients’ financial goals and personal goals are so intertwined. It is especially rewarding when a client trusts me to help their children,” Shah said. “That is the most gratifying part of this; the relationships that we have established. I’ve worked with some clients and families where I’ve had up to three and four generations.”
In a report issued for April, J.P. Morgan Wealth Management global investment strategists said the economy has proven resilient but they continue to see a recession induced by monetary policy beginning in the third quarter of 2023.
