On screen:

J.P. Morgan Wealth Management.

INVESTMENT AND INSURANCE PRODUCTS:

• NOT A DEPOSIT
• NOT FDIC INSURED
• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
• NO BANK GUARENTEE
• MAY LOSE VALUE

FOR ILLUSTRATIVE AND EDUCATIONAL PURPOSES ONLY.

All Investments involve risk, including loss of principal. There can be no assurance that any return objectives will be met. The impact of a tax loss harvesting strategy depends upon a variety of conditions including the actual gains and losses incurred on Holdings and future tax rates. Tax loss harvesting may not be appropriate for everyone. If you do not expect to realize net capital gains this year, have net capital loss carry forwards, are concerned about deviation from your model investment portfolio, and or are subject to low income tax rates or invest through a tax deferred account, tax loss harvesting may not be optimal for your account. You should discuss these matters with your investment and tax advisors. Tracking error is one potential risk of a tax loss harvesting strategy. Investors considering a tax loss harvesting strategy should look at their portfolios holistically to ensure they stay on track for their overall investment goals.

Are Taxes Eating Up Your Investment Returns?

Nancy Rooney, Managing Director, Global Head of Managed Solutions.

Nancy Rooney:

Over time, taxes can erode your returns. And while taxes can't be avoided, they can be managed. And we call that being tax smart. So how do you build tax awareness into your portfolio? One way is through tax-loss harvesting.

On screen:

What's Tax-Loss Harvesting and Why Does It Matter?

Nancy Rooney:

Stocks go up and down. It's a natural part of what they do. And as an investor, you have a choice. You can ride along in that journey. And usually, holding and not trying to time the market is good. You're not a victim to the quick ups and downs of the market.

On screen:

A line on a graph of Market Volatility bounces up and down along a timeline.

Nancy Rooney:

But in the end, it may not be as tax efficient as it could be.

On screen:

Money flows from a piggy bank labeled "Returns" to a tax bill.

Nancy Rooney:

Let's say you have $100,000 invested into stock A. Over the course of the month, the price fell by 40%. When your stock has depreciated, you can now lock in that loss by selling stock A. And since you want to keep your portfolio in line with your strategy's objectives, you buy and now hold $60,000 of stock B in a very similar investment.

And this natural journey of ups and downs continues. All along you repeat this process and continue to pick up a bit of these tax benefits.

On screen:

A bar graph graphic depicts the sold funds as harvested losses. Other bards rise and fall under the title "Portfolio".

Nancy Rooney:

And because you're tax smart, now you're building up a reserve of losses that you can then use to offset capital gains in other parts of your portfolio, potentially resulting in a lower tax bill at the end of the year.

On screen:

Money from the harvested losses container and less from the piggy bank flow into the tax bill.

Nancy Rooney:

That is called tax alpha. It's the incremental value add resulting from tax efficient management. At JPMorgan, we implement tax-loss harvesting for you in a way that's customized and cost efficient, which essentially allows you to get exposure to broad market indices such as the S&P 500 or even certain active strategies. Our systematic approach actively looks for opportunities on a daily basis to harvest losses. We're essentially using the market's natural volatility to create potential tax savings for you.

Now, for investors that have high embedded gains and don't necessarily want to pay a hefty tax bill to make the switch, we offer a transition process that is unique to your preferences as well as your tax sensitivity. Taxes are a part of life. And we believe that with the right strategies, they can be managed for better outcomes. Speak to your JPMorgan team to learn more about how tax-smart strategies can add tax alpha for your portfolio.

That was great.

Yeah. Good job. Good job.

On screen:

Speak to your J.P. Morgan Team.

J.P. Morgan Wealth Management.

Important Information

Tax Disclosure

J.P. Morgan Chase and Co., its affiliates, and employees do not provide tax, legal or accounting advice. Information presented on these webpages is not intended to provide, and should not be relied on for tax, legal and accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.

Market Commentary and Testimonials

This video and its content have been developed for J.P. Morgan Securities LLC clients and prospects, is for informational and educational purposes only, and is designed to provide general market commentary and information relating to certain services offered by J.P. Morgan Securities LLC, an affiliate of JPMorgan Chase and Co. Opinions expressed herein are those of the author and may differ from those of other J.P. Morgan employees and affiliates. The information in no way constitutes J.P. Morgan research and should not be trusted as such. Further, the views expressed herein may differ from that contained in J.P. Morgan research reports.

The information and views expressed are not intended to provide specific advice or recommendations for any individual. You should carefully consider your needs and objectives before making any decisions. For specific guidance on how this information should be applied to your situation, you should consult your Advisor.

This may not be representative of the experience of other customers, and there is no guarantee of future performance or success.

529

Depending upon the laws of the home state of the customer or designated beneficiary, favorable state tax treatment or other benefits offered by such home state for investing in 529 Plans may be available only if the customer invests in the home state's 529 Plan. Any state-based benefit offered with respect to a particular 529 Plan should be one of many appropriately weighted factors to be considered in making an investment decision, and you should consult with your financial, tax or other adviser to learn more about how state based benefits ,including any limitations, would apply to your specific circumstances.

J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC. Insurance products 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 & Co. Products not available in all states.

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