The Number 1 Personal Finance lesson to Take Away From the Coronavirus
Ted Jenkin, CEO and founder of oXYGen Financial, a financial advisory and wealth management firm specializing in Generations X and Y, and a member of the CNBC Financial Advisor Council, said many people do struggle with basic risk concepts. “People can say they will invest more when the market is down 20%, but in real life they don’t do it,” he said. “Everyone understands rewards, but hardly anyone understands risk. We should be trying to get back to basic financial literacy about risk and time,” Jenkin said. “The stock market is a long-term investment. People without five years or more to be in it shouldn’t be in it. There is just not enough education on risk,” he said, and that is always compounded after a period of time during which the market seemed to only go up.
CNBC.com, April 4, 2020