Family Wealth Across Generations & How to Manage It
- Establishing a vision – Families must have a clear understanding of their financial goals for both the present and the future. This vision should incorporate the family's values, traditions, and ambitions. It should also provide guidance on managing wealth in the future.
- Education and communication – It’s vital that each generation understands that financial matters are vital for successful wealth management. Effective communication within the family can help them understand the shared vision and the strategies being employed to attain it.
- Adhering to an investment strategy – The strategy should be designed to address the family's long-term financial objectives while managing risk and adapting to changing economic circumstances.
- Estate planning – Estate planning can help prevent a significant erosion of wealth due to tax liabilities. Wealth is transferred according to the current generation's wishes, while minimizing the impact of taxes on heirs.
- Regular family meetings – These meetings help foster open discussions about wealth management and provide an opportunity to share experiences, express concerns, and align generations on the family's financial vision.
- Education – Family members should be educated about financial matters from an early age. This education can include financial literacy programs, mentorships, or paid internships. Financial advisors can also provide insights and guidance.
- Transparent decision-making – Transparency is critical as it allows each family member to understand the decisions being made and their future implications.
- Collaboration with professionals – Trusted financial, insurance, legal, and tax professionals can provide families with the guidance they need to manage their wealth. Each plays a critical role in creating and implementing a comprehensive wealth management plan.
Let's Team Up
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.
This material was prepared by Fresh Finance for the Investment Service Center’s use.
Copyright FMG Suite.
It is becoming more difficult for investors to find ways to diversify away from AI exposure as it commands a growing share of public and private markets. Hyperscalers, with a seemingly never-ending appetite for fresh capital, have tapped nearly every corner of the capital markets – raising both equity and debt – to fund the AI capex buildout. As a result, market concentration in the tech sector, which is increasingly tied to AI, has risen with no signs of slowing down. According to J.P. Morgan Global Research, the cumulative price tag for the buildout is expected to reach $5.5tn by 2030, suggesting that elevated concentration in tech could persist for years. This could leave portfolios acutely exposed to heightened bouts of volatility if challenges arise. Potential challenges include slower AI adoption, delays in upgrading the electrical grid to power data centers or AI companies missing earnings forecasts.
With so much money pouring into a single concentrated theme, many investors are left wondering, “Where can I turn for true diversification?” While it may be getting harder to find, there are still underappreciated areas across public and private markets that can provide diversification benefits. In public markets, investing internationally in developed market equities, where the tech sector accounts for only ~15% of the benchmark, can limit AI exposure. In private markets, real assets such as core infrastructure and real estate can provide uncorrelated returns, regardless of whether AI’s promises are ultimately delivered.
Moving forward, as AI’s presence across asset classes continues to grow, investors seeking to maintain diversified portfolios will likely need to take a more active approach to limit concentration in this single theme.
Chart of the Week: Source: FactSet, FTSE Russell, J.P. Morgan Global Research, Preqin, S&P Global, J.P. Morgan Asset Management. Small cap and S&P 500 figures include information technology and communication services sector weights. Private equity, private credit and venture capital are approximated by summing the technology and business services sector deal values as the share of total aggregate deal value over the last five years for deals tracked by Preqin. Credit weight is the percentage of total index market value while equity weight is percentage of total index market cap.
Thought of the Week: Source: FactSet, J.P. Morgan Global Research, J.P. Morgan Asset Management.
Abbreviations: Cons. Sent.: University of Michigan Consumer Sentiment Index; CPI: Consumer Price Index; EIA: Energy Information Agency; FHFA HPI: - Federal Housing Finance Authority House Price Index; FOMC: Federal Open Market Committee; GDP: gross domestic product; HPI: Home Price Index; HMI: Housing Market Index; ISM Mfg. Index: Institute for Supply Management Manufacturing Index; PCE: Personal consumption expenditures; Philly Fed Survey: Philadelphia Fed Business Outlook Survey; PMI: Purchasing Managers' Manufacturing Index; PPI: Producer Price Index; SAAR: Seasonally Adjusted Annual Rate
Index: Institute for Supply Management Manufacturing Index; PCE: Personal consumption expenditures; Philly Fed Survey: Philadelphia Fed Business Outlook Survey; PMI: Purchasing Managers' Manufacturing Index; PPI: Producer Price Index; SAAR: Seasonally
Adjusted Annual Rate
MSCI EAFE is a Morgan Stanley Capital International Index that is designed to measure the performance of the developed stock markets of Europe, Australasia, and the Far East.
Bond Returns: All returns represent total return. Index: Bloomberg US Aggregate; provided by: Bloomberg Capital. Index: Bloomberg Investment Grade Credit; provided by: Bloomberg Capital. Index: Bloomberg Municipal Bond 10 Yr; provided by: Blomberg Capital. Index: Bloomberg Capital High Yield Index; provided by: Bloomberg Capital.
Key Interest Rates: 2 Year Treasury, FactSet; 10 Year Treasury, FactSet; 30 Year Treasury, FactSet; 10 Year German Bund, FactSet. 3 Month LIBOR, British Bankers’ Association; 3 Month EURIBOR, European Banking Federation; 6 Month CD, Federal Reserve; 30 Year Mortgage, Mortgage Bankers Association (MBA); Prime Rate: Federal Reserve.
Commodities: Gold, FactSet; Crude Oil (WTI), FactSet; Gasoline, FactSet; Natural Gas, FactSet; Silver, FactSet; Copper, FactSet; Corn, FactSet. Bloomberg Commodity Index (BBG Idx), Bloomberg Finance L.P.
information from FactSet's Pricing database as provided by MSCI. Russell 1000 Value Index,
Style Returns: Style box returns based on Russell Indexes with the exception of the Large-Cap Blend box, which reflects the S&P 500 Index. All values are cumulative total return for stated period including the reinvestment of dividends. The Index used from L to R,
top to bottom are: Russell 1000 Value Index (Measures the performance of those Russell 1000 companies with lower price-to book ratios and lower forecasted growth values), S&P 500 Index (Index represents the 500 Large Cap portion of the stock market, and
is comprised of 500 stocks as selected by the S&P Index Committee), Russell 1000 Growth Index (Measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values), Russell Mid Cap Value Index (Measures
the performance of those Russell Mid Cap companies with lower price-to-book ratios and lower forecasted growth values), Russell Mid Cap Index (The Russell Midcap Index includes the smallest 800 securities in the Russell 1000), Russell Mid Cap Growth Index (Measures the performance of those Russell Mid Cap companies with higher price-to-book ratios and higher forecasted growth values), Russell 2000 Value Index (Measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values), Russell 2000 Index (The Russell 2000 includes the smallest 2000 securities in the Russell 3000), Russell 2000 Growth Index (Measures the performance of those Russell
2000 companies with higher price-to-book ratios and higher forecasted growth values).
Past performance does not guarantee future results.
The J.P. Morgan Asset Management Market Insights and Portfolio Insights programs, as non-independent research, have not been prepared in accordance with legal requirements designed to promote the independence of investment research, nor are they subject to any prohibition on dealing ahead of the dissemination of investment research.
This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any
jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. 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, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own financial professional, if any investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. 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 taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.
J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
Telephone calls and electronic communications may be monitored and/or recorded.
Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our privacy policies at https://www.jpmorgan.com/privacy.
This communication is issued by the following entities:
In the United States, by J.P. Morgan Investment Management Inc. or J.P. Morgan Alternative Asset Management, Inc., both regulated by the Securities and Exchange Commission; in Latin America, for intended recipients’ use only, by local J.P. Morgan entities, as the case may be.; in Canada, for institutional clients’ use only, by JPMorgan Asset Management (Canada) Inc., which is a registered Portfolio Manager and Exempt Market Dealer in all Canadian provinces and territories except the Yukon and is also registered as an Investment Fund Manager in British Columbia, Ontario, Quebec and Newfoundland and Labrador.
If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance.
Copyright 2026 JPMorgan Chase & Co. All rights reserved.
©JPMorgan Chase & Co., August 2026.
Unless otherwise stated, all data is as of August 17, 2026 or as of most recently available.
0903c02a81dbac80
| Not Insured by FDIC or Any Other Government Agency | Not Bank Guaranteed | Not Bank Deposits or Obligations | May Lose Value |
|---|
