After the rollercoaster ride of the first three months of the year for the overall economy and the stock market, one local financial planner does not believe it was as bad as some may perceive.

Certified Financial Planner, Tim Heisterkamp with Journey Financial, says even though the Gross Domestic Product (GDP) was reported to be down by 0.3 percent, and looking at the import versus export ratio dragging the GDP down 4.8 percent, making it the largest drop since 1947, that does not tell the whole picture when you only consider the “core GDP.”

“Core GDP excludes government purchases, inventories, and international trade, which are the most volatile components of GDP. And when you look at core GDP that was actually up three percent for the first quarter.” 

Heisterkamp says another piece of positive news is one the main stock market indexes is the S&P 500 over the three year average is still over 12 percent and the five year average is over 16 percent. He talks about the retirement population and how those individuals should have already been out in front of something like this, which can be comparable to the covid pandemic and the housing recession in 2008 and 2009.

“Properly manage your portfolio, so that if there is an event that is unforeseen that would cause the stock market to drop, you’re somewhat immune from that for at least a couple of years, especially if you are taking money out of the market.”    

Heisterkamp adds that for individuals who have not yet started a 401K, they should do a risk analysis so you know where your tolerance is to invest, as well as following the principle of dollar cost averaging. He says this is when you invest a little bit each month into your 401K, that way when the market is low, you can buy more shares, and when it is high, you can buy less shares, but ultimately you are going to make more money, depending on what your financial goals are.