Creating a J.P. Morgan Automated Investing account is simple. You can choose between a general investing account or a traditional or Roth individual retirement account (IRA). Other types of accounts, such as 529 college savings plans or UTMA/UGMA trusts, are not available.
You begin by filling out a questionnaire with a few key details—your age, how much you wish to invest initially and contribute monthly, your risk tolerance, why you’re saving and when you need the money.
The platform then presents you with a graphic that illustrates how much you’ve saved and what you’re likely to earn in three different market scenarios. That last bit is a nice touch that helps investors visualize the riskiness (and potential reward) of their investments.
After answering a few more questions about your plans—like whether you’d prefer to preserve capital or make as much money as possible—you’re presented with a prospective investment portfolio.
In Forbes Advisor’s tests, J.P. Morgan Automated Investing built a portfolio comprising 45% domestic stocks, 30% international stocks—a total of 75% equities—and 25% in fixed income assets and cash. The platform told us this is typical for a “growth” risk profile.
Much like leading robo-advisors Betterment and Wealthfront, your portfolio includes a bunch of ETFs (our sample account included eight funds), plus some exposure to cash. All the ETFs are J.P. Morgan funds, which has pluses and minuses that we’ll cover more below.
J.P. Morgan Automated Investing charges an annual advisory fee of 0.35%. This equates to $175 annually on $50,000 invested. That fee is costlier than Betterment, which offers a wider array of services, and Vanguard Digital Advisor, among others.
You’ll also need to pony up $500 to start an account. Other leading robos generally have low or no minimums to encourage potential clients to get going.