Protecting your personal wealth

You’re deeply invested in your company. That means much of your personal wealth is too. Let’s talk about the ways you can protect your future and your family. Our strategies are informed by decades of helping other owners accomplish just that. And when we combine these insights with everything else we do—banking, lending, investing, estate planning, you name it—we can build a plan for your complete picture. Your personal assets and your business. Because together, they help you live a good life now and in the future.

Mixing business with your personal portfolio

What does a personal investment plan for a business owner look like? At J.P. Morgan Private Bank, we think it’s essential to view your business as an asset—most likely, your largest asset—in your personal investment portfolio. With your company factored in, the right approach becomes clearer: Put your other assets into investments that don’t face the same risks.  

Let’s look at an example to make this more tangible. The performance of U.S. car dealerships often moves in lock step with the national economy. So when we build a portfolio for a dealership owner, we might recommend putting very little into large consumer-focused domestic companies. 

For all business owners, there are two natural marketplace extremes to consider. Recession and expansion. If the national economy experiences a recession, your business is more likely to be affected. On the other end of the spectrum, you might miss out on hot markets (unless your business happens to be in one of them). So, depending upon your goals and circumstances, we may recommend an investment strategy that addresses both conditions. Less risky investments to preserve capital during recessionary markets. And high growth-focused investments to take advantage of expansionary markets.

At some point, it might make sense to move some measure of your wealth out of your company. For example, if you need to increase investment in your complementary portfolio to get the right balance. There are ways to accomplish this without selling.

How much wealth you choose to move out of your business—and which complementary investments you decide to put it in—depends on your stage of life, goals and values, and appetite for risk. We’ll work closely with you to help determine the right mix for you.

Finding business–life balance  

Every business owner has an optimal balance between concentration (personal investment in the business) and diversification (investing money you take out of the business to protect your personal wealth). We can help you find your balance.

For a business owner to build a smart, risk-managed, personal investment portfolio, she must take into account her core asset: her company.”