Columbus Monthly Special Section: Wealth Management

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SPECIAL ADVERTISING SECTION

Best Laid Plans

Financial planning in a volatile market By Brooke Preston

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COLUMBUS MONTHLY AUGUST 2020

PHOTO: ISTOCK.COM/PUTTACHAT KUMKRONG

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his year has proven to be many things, but stable isn’t one of them. The Covid-19 pandemic brought an unprecedented stock drop, followed by a slower, less predictable recovery. With the virus still very much a threat, it’s impossible to predict how the market might behave for the rest of the year. The term “volatility” measures a market or security’s tendency toward a sharp rise or fall within a short period of time, typically measured by the standard deviation of the return on an investment (ROI). Volatile markets are usually characterized by wide price fluctuations and heavy trading—and in the case of Covid-19, automatic and temporary market freeze thresholds to prevent further proverbial bleeding. So how can individuals and families faced with so much uncertainty make smart investments? The answer isn’t one-size-fits-all. Depending on your net worth and age, your options and priorities will vary. And despite the rise of popular amateur stock trading apps like RobinHood, investments are not something one generally masters over morning coffee. Yet contrary to popular belief, financial planners and wealth management professionals are not just for CEOs and jetsetters.


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