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Tips for new investors to kickstart the growth of a financial legacyVideo

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Description: Our inaugural summit for Black and Latina women included a discussion on how to start investing today. Learn some simple steps to help you begin your investment journey.

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Length (seconds): 777

Transcript: <h2>Note:</h2> <p>Legal disclosures appear.</p> <h2>On Screen:</h2> <p>J.P. Morgan Wealth Management logo.</p> <h2>On Screen:</h2> <p>Investments and insurance products are:</p> <ul> <li>Not a deposit</li> <li>Not FDIC insured</li> <li>Not insured by any federal government agency</li> <li>No bank guarantee</li> <li>May lose value</li> </ul> <h2>On Screen:</h2> <p>A blooper clip shows the two women featured in this video, talking in a video recording studio…</p> <h2>Cassandra Cyrius:</h2> <p>Yes, yes, mm-hmm, and it's cheap when you're young, you know, me and my sister--</p> <h2>Tosh Ernest:</h2> <p>What question am I supposed to be asking you now?</p> <h2>Cassandra Cyrius:</h2> <p>Huh?</p> <h2>Tosh Ernest:</h2> <p>Show me the mic. Oh wait, we were filming?</p> <h2>On Screen:</h2> <p>J.P. Morgan Wealth Management presents - <strong>Building a New Legacy: </strong>A Summit for Black and Latina Women.</p> <h2>Note:</h2> <p>Upbeat music plays.</p> <h2>On Screen:</h2> <p>Episode One: Always the Saver, Never the Investor.</p> <h2>On Screen:</h2> <p>A woman with long dark hair and brown eye, Tosh Ernest, wears a necklace and earrings.</p> <h2>On Screen:</h2> <p>Tosh Ernest, Head of Wealth for Advancing Black Pathways, J.P. Morgan Chase.</p> <h2>Tosh Ernest:</h2> <p>Hello and welcome to &quot;Always the Saver, Never the Investor, and How to Get Started.&quot; I'm Tosh Ernest, Head of Wealth for Advancing Black Pathways at JPMorgan Chase, and I'm joined today by the queen from Queens, New York herself, Cassandra Cyrius.</p> <h2>On Screen:</h2> <p>Ms. Cyrius, a woman with brown curled hair and brown eyes wears a bright red silk scarf.</p> <h2>On Screen:</h2> <p>Cassandra Cyrius, Market Director of Wealth, J.P. Morgan Wealth Management.</p> <h2>Tosh Ernest:</h2> <p>Cassandra is Market Director of Wealth, and she has over a decade's worth of experience helping clients like yourself build the generational wealth you need not just for you, but to leave a legacy for your families. So let's get started. Hi, Cassandra.</p> <h2>Cassandra Cyrius:</h2> <p>Hi, Tosh.</p> <h2>Tosh Ernest:</h2> <p>I know that as a woman of color, my path to building wealth is going to be different for that of men, for example. We know that women of color disproportionately tend to be the bread winners in their homes, women in general live longer, have more stops and starts with their careers, births, deaths, marriages. They tend to look after, you know, disproportionately the older generation. So tell us, what was your “aha” moment that made you decide to finally start investing and not just saving?</p> <h2>Cassandra Cyrius:</h2> <p>Thanks for that, and first of all, I want to say thank you for inviting me to be part of this sisterhood. I'm always happy to share this information or financial intelligence. It's important that we all know. Now as far as me, my “aha” moment happened back in 2008, 2009, coming off of the Great Recession, my parents both retired and unfortunately, their savings was dismantled by the recession. So it wasn't only that that happened, it was more that they didn't really know how to come out from it. And what I realized is that they didn't even have someone to speak to about it, or someone they trusted. And it led me to know that there's so much as far as finance is concerned that I didn't know as a person as well, and I know growing up as a Haitian American woman in New York, that it wasn't something we necessarily discussed over the table, the dinner table.</p> <h2>Tosh Ernest:</h2> <p>It's grown folks' business, right?</p> <h2>Cassandra Cyrius:</h2> <p>Yeah, yeah, you know, it's nothing to talk about, you don't talk about money at all, you know? So with that being said, I started to have more curiosity towards finance and investments and things of that sort, and that's essentially what started my career.</p> <h2>Tosh Ernest:</h2> <p>Yeah, and I think that that's a great point because economic downturns are not necessarily something you can plan for.</p> <h2>Cassandra Cyrius:</h2> <p>No.</p> <h2>Tosh Ernest:</h2> <p>So how do you plan for the unplannable? How do you create that safety net or emergency fund?</p> <h2>Cassandra Cyrius:</h2> <p>I mean, it starts from your day-to-day routine, right? At the end of the day, you need to start saving, right? But I understand that the compromise between today and tomorrow is always tough, especially for families and young families at that, but it could be the difference from packing lunch for two extra days or maybe not buying that pair of shoes, I know that's my personal kryptonite, but yeah, you can start saving in many different ways, and once you do that, you at least grow a cushion. You also should understand your budget, right? So one would say that you can't really do one without the other, if you don't understand the inflows and outflows of your money, then you really can't efficiently save, 'cause you're always tapping into your savings. It's very important to just really understand how you spend and to really see what are ways that you could be more efficient with your spending.</p> <h2>Tosh Ernest:</h2> <p>So the first step is to start with your budget.</p> <h2>Cassandra Cyrius:</h2> <p>Correct.</p> <h2>Tosh Ernest:</h2> <p>And then to start saving.</p> <h2>Cassandra Cyrius:</h2> <p>There you go.</p> <h2>Tosh Ernest:</h2> <p>Okay, but then the scary part, which is how do I get from saving to investing, can you help us just tread carefully into those, you know, shallow waters? What are some of the first things we should be thinking about?</p> <h2>Cassandra Cyrius:</h2> <p>When people think of investing, they think of like this huge stock market and you know, buy low, sell high, it's not to that point. It doesn't have to be that way for you, okay? What I would say is that you should really decide two things, one of them is going to be your risk tolerance…</p> <h2>On Screen:</h2> <p>Risk tolerance (noun) - The degree of variability in investment returns that an investor is willing to withstand.</p> <h2>Cassandra Cyrius:</h2> <p>…so understand how you feel about the market. What do I mean by that? You are, generally speaking, classified in three categories. You can be conservative…</p> <h2>On Screen:</h2> <p>Conservative (advective) - Partially involved in investment portfolio with no downside volatility.</p> <h2>Cassandra Cyrius:</h2> <p>…which means that I'll let my money grow a little bit, but I don't really want too much downside volatility. Then of course, you can be balanced, which is kind of putting you in the middle where you want to have some growth but you're okay with it going down a little bit…</p> <h2>On Screen:</h2> <p>Balanced (advective) -  Want growth but acceptable to some risk.</p> <h2>Cassandra Cyrius:</h2> <p>…and of course, aggressive, which is your main focus of growth, okay?</p> <h2>On Screen:</h2> <p>Aggressive (advective) - Willing to risk more money for the possibility of better returns.</p> <h2>Cassandra Cyrius:</h2> <p>So once you decided what your risk tolerance is, then the next step is to understand your time horizon.</p> <h2>On Screen:</h2> <p>Time horizon (noun) - The length of time you plan to hold your investments.</p> <h2>Cassandra Cyrius:</h2> <p>So your time horizon is really you saying to yourself, how long do I want to give myself to achieve this goal? If you know you need to buy a car because your lease is over or it broke down and you need to do this within the next year, then that means your time horizon is for 12 months or less, right? So when you have a shorter time horizon, you should probably stay in something that's a little more conservative, because you can't afford the time to make back your money just in case there is a downturn. Now, if your time horizon is longer than that, like you're buying a house or you want to go on your dream vacation and you're giving yourself 5 to 10 years, then obviously, you can afford more volatility in the market, and again deal with the fluctuations.</p> <h2>Tosh Ernest:</h2> <p>How do we just get started? Say I have $100, what should I do?</p> <h2>Cassandra Cyrius:</h2> <p>I mean you can obviously start with your checking and savings account. A lot of people only have checking. I would say always start with a savings account, you want to make sure you have that, but now, you want to go into the investment world. A self-directed investment account or brokerage account is great because essentially what it is is just a way for you to dip your toe into the markets. You don't have to fully immerse yourself, you're just literally starting. Now as far as how you invest, I would say that the best rule of thumb is to invest in things that you know or understand or use, right?</p> <h2>Tosh Ernest:</h2> <p>Right, so we know our tolerance, we know our time horizon, we can either do it ourselves, which is self-directed, or we can come and speak to an advisor like you and talk through advisor-led strategies. So talk to us about the role of an advisor and how they can help us.</p> <h2>Cassandra Cyrius:</h2> <p>So in my opinion, an advisor is an educator. The goal or the job of an advisor is to really speak to you about your personal situation, let you understand based on the information they have what kind of solutions are available to you, and the two of you come together and create a compromise, okay? I say it that way on purpose, because if you find that you're with an advisor that's just dictating a strategy and you don't understand, then it might be time for you to look for a new advisor. You need to make sure that you and your advisor are on the same wavelength, and this way, come a downturn in the market, you'll understand what can happen based on the conversation. It's best that you have someone who kinda walks you through it, hand in hand like an advisor.</p> <h2>Tosh Ernest:</h2> <p>Got it, so then the advisor manages your portfolio, so you have a managed portfolio, or you can manage your own portfolio, which is a self-directed portfolio.</p> <h2>Note:</h2> <p>Small print text appear.</p> <h2>On Screen:</h2> <p>Investment accounts are not restricted to only managed or self-directed. These are simply two examples.</p> <h2>Tosh Ernest:</h2> <p>Is there like a good time to get invested? Because I feel like sometimes we have like analysis paralysis, and we just want to wait for like the perfect time to start investing. What advice would you give to someone right now that just doesn't know when or how to get started?</p> <h2>Cassandra Cyrius:</h2> <p>Best time to get invested was yesterday.</p> <h2>Tosh Ernest:</h2> <p>Okay.</p> <h2>Cassandra Cyrius:</h2> <p>Get invested, if you're not--</p> <h2>Tosh Ernest:</h2> <p>And the second best time is today.</p> <h2>Cassandra Cyrius:</h2> <p>Today.</p> <h2>Tosh Ernest:</h2> <p>Got it, okay.</p> <h2>Cassandra Cyrius:</h2> <p>So get invested. You want to actually, if you're thinking about it, that means do it, and you're right, you said it perfectly. Analysis paralysis. So many times do we create this perfect plan in our head, but we never initiate or implement simply because the star and the moon didn't align and you know, the sun didn't rise from, what have you.</p> <h2>Tosh Ernest:</h2> <p>Mercury was in retrograde.</p> <h2>Cassandra Cyrius:</h2> <p>So you want to, the best way is to start. Now the key is what a lot of people believe is that it has to be an aggressive start, which it doesn't.</p> <h2>Tosh Ernest:</h2> <p>Or that you have to have a lot of money.</p> <h2>Cassandra Cyrius:</h2> <p>Exactly, those two are examples of misinformation, right? You don't need to start with so much. I had clients when I was an advisor that would start with as little as $25.</p> <h2>Tosh Ernest:</h2> <p>Okay, wow.</p> <h2>Cassandra Cyrius:</h2> <p>Now again, I know that the hardest challenge we have is compromising between today and tomorrow. You can forego things that you don't necessarily need. You should ask yourself: what are your needs and wants, okay? Because if you find that a lot of your purchases and buys are falling into the want pile, perhaps you can forego some of those and just only adhere to your need pile and then you'll find some extra savings there.</p> <h2>Tosh Ernest:</h2> <p>You know, this reminds me of a show where this lady had so many pairs of shoes that she didn't have a down payment for her apartment. And she literally was the little old woman that lived in the shoe.</p> <h2>Cassandra Cyrius:</h2> <p>Yeah.</p> <h2>Tosh Ernest:</h2> <p>Because of all those $300 pairs of shoes.</p> <h2>Cassandra Cyrius:</h2> <p>Yeah, sounds about right, yeah. But it's so easy for that to happen, I mean you know, a lot of times we live too much in our present and you know, we're only thinking about today, today, today, and it is great, and I understand how for some people, they have no other choice but to think for today, but you have to squeeze in a little of that tomorrow.</p> <h2>Tosh Ernest:</h2> <p>If you can wrap it up and give people like three things, if you don't remember anything else, these are the three things you gotta do to leave a legacy, do it for your last name, not your first name, take it away.</p> <h2>Cassandra Cyrius:</h2> <p>Okay, I think the first thing is to break the cycle of not passing on financial intelligence, okay? Legacy planning is not about what tangible money you leave for your children, grandchildren, great grandchildren, it's about the information that you left with them as well, so this way they're not restarting that wheel, okay? You already are putting the effort in in this generation. You don't want each generation to start over again, okay? Now, the next thing I would say is understand your budget. The budget is so important for anyone. I don't care, you know, how wealthy you are, a lot of people do not understand their budget. The key to that is that you need to always know what's coming in and coming out. This way, you're able to prepare yourself, right, and the best way to prepare is by my last point, the savings account or you can also do an investment account whether you go self-directed, or you go with an advisor.</p> <h2>On Screen:</h2> <p>Key Takeaways:</p> <ol> <li>Break the cycle of misinformation;</li> <li>Understand the inflows and outflows of your money;</li> <li>(and) Start thinking like an investor.</li> </ol> <h2>Cassandra Cyrius:</h2> <p>Now remember, to start, you don't have to start with thousands, you can start with just $25. The best person who takes care of you is your younger self.</p> <h2>Tosh Ernest:</h2> <p>Well Cassandra, it's been so wonderful to have you with us today…</p> <h2>On Screen:</h2> <p>Ms. Ernest addresses the viewer.</p> <h2>Tosh Ernest:</h2> <p>…and I want to thank everyone for joining us here today. We hope that you found this conversation helpful, to help you not just build wealth for your generation, but for the next generation and to leave a legacy. Thank you.</p> <h2>On Screen:</h2> <p>Building a New Legacy: A Summit for Black and Latina Women.</p> <h2>Logo:</h2> <p>J.P. Morgan Wealth Management.</p> <h2>Note:</h2> <p>Legal disclosures appear:<br /> </p> <h2>On Screen:</h2> <p>Investing involves market risk including possible loss of principal, and there is no guarantee that investment objectives will be achieved.</p> <p>Past performance is not a guarantee of future results.</p> <p>The views, opinions and estimates expressed herein are those of the speakers and are subject to change without notice. Information herein may differ from those expressed by other areas of J.P. Morgan. This information in no way constitutes J.P. Morgan Research and should not be treated as such. The views contained herein are not to be taken as an advice or a recommendation to buy or sell any investment in any jurisdiction and there is no guarantee that any of the views expressed will materialize. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only; based on certain assumptions, current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of writing, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, investors should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professional advisers, if any investment mentioned herein is believed to be suitable to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and investors may not get back the full amount invested. Both past performance and yield may not be a reliable guide to future performance.</p> <p>JPMorgan Chase &amp; Co. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your personal tax, legal and accounting advisors for advice before engaging in any transaction.</p> <p>J.P. Morgan Wealth Management is a business of JPMorgan Chase &amp; Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment advisor, member FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase &amp; Co. Products not available in all states.</p> <p>Copyright {{copyrightCurrentYear}} JPMorgan Chase &amp; Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC.</p>

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