A celebration is the perfect way to honor a special occasion with the people you care about. Whether it’s a birthday, wedding or anniversary, you deserve to mark the event in style. We’ve got some ideas to help you save for that once-in-a-lifetime party or vacation without disrupting the rest of your financial plan.
Put it in the budget
You don’t need a huge lump sum to start planning for a special occasion. Set a monthly target and put it right in your budget. Even small contributions to your investment accounts can add up over time.
Select a Homestead Funds account
There are many types of investment accounts. When planning for an event, the best choice is typically an individual or jointly owned taxable account. Investment accounts aren’t guaranteed the way bank accounts are, but they may provide comparable or possibly better rates of return. Your savings can grow even faster when you earn interest on the money you set aside.
Account types appropriate for this goal:
Choose your investment type
It’s important to select investment types that align with your investment goals and time horizon. Equities carry a higher degree of risk (meaning more volatile) but historically have delivered higher long-term returns. As time goes on, you’ll want to consider an asset mix with fewer equities and more fixed-income funds. Homestead Funds offers funds across these categories to help meet your investment needs.
Related Resources:
Debt securities are subject to interest rate risk, credit risk, extension risk, income risk, issuer risk and market risk. The value of U.S. government securities can decrease due to, among other factors, changes in interest rates or changes to the financial condition or credit rating of the U.S. government. Investments in asset-backed and mortgage-backed securities are also subject to prepayment risk as well as increased susceptibility to adverse economic developments. High-yield, lower-rated securities involve greater risk than higher-rated securities.
Equity securities generally have greater price volatility than fixed-income securities. The market price of equity securities may go up or down, sometimes rapidly or unpredictably. Equity securities may decline in value due to factors affecting the issuer or equity securities markets generally.
Let’s Get Started
Once you’re ready, start here.
The sooner you begin investing, the more time you have to reach your goal.
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