00:00We've talked a lot on this show about how complicated it is from a financial perspective to be an athlete.
00:04You have a lot of people at a very young age being given millions of dollars with no real direction
00:09of how to spend it.
00:10And then, of course, as they navigate their careers and try to find ways to invest it, a lot of
00:14pitfalls along the way.
00:16Give me a sense here. I mean, I understand you're a wealth manager, but why specifically did you sort of
00:21look to these athletes
00:22and say, we can maybe actually make a business out of this and actually bring them on board to help
00:27guide it?
00:27Yes. I love sports. I've loved sports my whole life.
00:30I think most of us have sports as part of the most favorite memories that we've had and some of
00:35the most proud moments for our country.
00:37And if you look at the statistics, they're staggering.
00:40Only 7% of high school athletes will go on to college.
00:43Only 2% of college athletes will turn pro.
00:46So we're all captivated by March Madness now with some incredible athletes.
00:50Most of them will not go pro.
00:52And then when you become a professional, so you're part of the less than 1%, your average career is about
00:58four years.
00:59So you're 28.
01:00You often didn't finish college because you were pursuing your career.
01:04And the peak of your earning power has just ended.
01:06So we believe there is wide open space here for my firm and my industry to be able to help
01:13some of these kids earlier on.
01:14What type of advice are you getting from some of the names that we just read off there with regards
01:19to what those athletes are looking for when it comes to managing their money, other than just, you know, obviously
01:24protecting their wealth?
01:26They were highly engaged.
01:27The one thing about athletes, they know how to work and they were there to work.
01:31They had all pre-read the materials.
01:32We put things in front of them.
01:34They liked the framework of how we're looking at it, which is college, and in many cases high school, professional,
01:41and retirement.
01:42But they didn't like the materials.
01:44They sort of threw up all over the checklist and the bank speak.
01:48And so they gave us some really interesting ideas on how to think about community, content, and connection.
01:54So how are you, you know, making contact with these athletes, college athletes, younger athletes in some situations?
02:02You know, is this those athletes coming to J.P. Morgan?
02:05Are you visiting schools?
02:07How do you sort of build that pipeline?
02:09That was one of the things that we sought their advice on.
02:11But, yes, the idea is we'll take Jalen Brunson to Villanova and Dwayne Wade to Marquette and have them talk
02:18about their stories.
02:19And then they gave us great advice on how to think about just give them really clear options of how
02:24much they can spend, how much they can save.
02:27So we're in the process of doing it.
02:28I sent them all a list of follow-ups last night and what we're asking their feedback on, and we're
02:33going to build the programming around the advice.
02:35That was the intent.
02:36We needed to hear from them before we could do it.
02:38And I'm really curious, you know, how does this benefit J.P. Morgan?
02:42How is this a business for you?
02:44You know, is the idea here that they're using J.P. Morgan products, J.P. Morgan services?
02:48How does this come back to the bank?
02:50Yes.
02:50We're not paying them to sell credit cards or checking accounts.
02:53We are paying them for their advice on how to reach these athletes.
02:57And they've given us super constructive advice.
02:59We believe we will get business from it, but that wasn't the original intent.
03:03We're one of the largest corporate sponsors of sports in the world.
03:06We have Madison Square Garden, the U.S. Open, the Chase Center, the Warriors.
03:10And, therefore, we have access to a lot of these athletes.
03:12And we've heard over and over again that there's a big problem and there's unoccupied space.
03:17And beyond just athletes, I'm actually very fascinated by what you've done over the last, you know, five, six years
03:22since you took over the wealth management business there.
03:26It has grown rapidly.
03:28And that seems to be by design.
03:29I mean, Jamie Dimon clearly put a big focus on that, the way he reorganized that back in 2019, 2020.
03:34I am curious about the growth that we've seen from $500 million in assets to whatever it is, well over.
03:40$1.3 trillion.
03:41Thank you for asking.
03:42Sorry, sorry.
03:42You've got the $1.3 trillion.
03:44But it gets to this idea of wealth management now effectively becoming the dominant business for a lot of the
03:50big banks.
03:51And I am curious, is that just a generational thing, a structural thing that we're going through, or is something
03:55else driving it?
03:56Well, I think when interest rates went up, people realized that having your money sitting in cash was not that,
04:01you know, fruitful.
04:03And then during COVID, a lot of people got into self-directed investing on their own and ways to pass
04:08the time.
04:09And I think people are just getting smarter and the tools are getting better.
04:11One thing about my business is at $1.3 trillion, we're still a small business at J.P. Morgan.
04:17But we can serve anyone, whether you have $5 or $5 billion, we can serve anybody.
04:22And that is the intent and the hope.
04:25And frankly, through the athletes, we hope to get to more of those underinvested groups like women, communities of color,
04:31who haven't been investing at the same rate as other people because they look up to these guys and want
04:37to listen to them.
04:38Well, to that point, I mean, you think about the markets, what we've seen in terms of the headlines over
04:43the past month or so,
04:45that underinvested community, some of the news flow, what have the conversations sounded like?
04:51Are people being scared away from these markets?
04:54We try to get people focused on the goal, which is, OK, your goal is to retire by here at
04:59this age with this lifestyle.
05:01Are you still on track for your goal? Yes or no.
05:03Or do we need to make some adjustments to your portfolio?
05:06But we can't let people wig out if the market's up or down because most people, including us, who try
05:11to time it will get it wrong.
05:13We instead try to keep them very focused on the goal and whether they need to make some adjustments along
05:17the way.
05:17So it's obviously a long-term focus.
05:19But the short-term still matters, right?
05:21The short-term still matters, particularly if one goal is retirement and the other is I've got a 16-year
05:25-old and I need to save for college or I want to buy this house.
05:29And so we look at each goal differently.
05:31We assign portfolio valuations to each differently and try to get people focused on whether or not they're on track
05:36or not.
05:37I do have one last question.
05:38Did you fill out your brackets?
05:39I did.
05:40Because Katie missed the deadline there.
05:42I did.
05:43I assume you're busted like everybody else.
05:45No.
05:45To my family, I am number one in the bracket right now.
05:49Oh, OK.
05:49My son and daughter are watching.
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