Robust investment portfolios are the key to navigating economic changes. While diverse investments matter, Justin Nelson believes investors need more than diversification to get ahead. That’s why the Managing Director and Senior Private Banker at J.P. Morgan Private Bank takes a different approach to building client portfolios.
Leading a 20-person team that manages over $15 billion in assets, Nelson embraces a hybrid approach that mixes traditional financial best practices and out-of-the-box thinking. Justin Nelson offers valuable lessons for anyone looking to build a strong investment portfolio.
Core Elements of Justin Nelson’s Portfolio Strategy
Every wealth manager takes a unique approach to wealth-building, and Justin Nelson is no different. His team follows both industry best practices and unconventional wisdom to get results for their clients.
1. Diversification
Diversification isn’t new, but it’s still essential for managing risks. It’s no wonder Justin Nelson’s investment strategies focus on diversification.
He works closely with his clients to allocate investments across various asset classes. This approach reduces his clients’ exposure to poor conditions in one market. For example, he often advises his clients to invest in real estate because it provides a steady source of income.
Private equity and venture capital are risky, but they’re a popular alternative for Justin Nelson’s high-net-worth clients.
While they come with their own risks, these alternative investments appeal to clients wanting to grow their wealth outside of the public market. Nelson reduces portfolio volatility by blending these with more traditional asset classes like equities and bonds.
2. Estate Planning
Many of Justin Nelson’s clients are concerned about their legacies. Estate planning preserves wealth for future generations, while effective cash management strategies help clients maintain liquidity for their short-term needs without compromising their long-term goals.
Nelson’s approach also focuses on charitable giving. Instead of simply giving away funds at the end of their lives, many of his clients want to make meaningful contributions in the here and now. “We work closely with clients to help them create a charitable mission and support charities that will have significant impact,” he says. Part of Justin Nelson’s job is researching and vetting deserving charities, helping his clients not only extend their legacy but also make the world a better place.
3. Out-Of-the-Box Thinking
Justin Nelson doesn’t have a typical finance background. His B.S. in Chemistry and Economics from Tufts University might not make him seem like a strong candidate on paper, but he credits his success to this multidisciplinary education.
In fact, Nelson believes that the industry needs more financial professionals with diverse backgrounds. “When I’m out looking to hire people out of undergrad, we care more about a candidate’s interest for finance demonstrated by their experiences and less about their major” he explains. In Nelson’s view, hiring the right people is key. Even if they have a non-finance background, they deserve a shot. As long as they have an ability to synthesize information from different areas for the benefit of their clients, Nelson believes these professionals have a lot to offer.
Future-Proofing Wealth with Tailored Investment Strategies
Experts predict a gradual decline in U.S. GDP, which could affect investors’ returns. The economy will ebb and flow over time, but regardless, it’s never been more important to embrace a robust portfolio strategy to weather these changes. Justin Nelson’s approach is a refreshing mix of traditional best practices and synergistic thinking that helps investors protect their wealth through robust, resilient portfolios.
