Money isn’t just for paying the bills: It allows us to take care of the people and causes we care about. You’ve worked hard and sacrificed so that you can give to others, whether that means putting your grandchildren through college, leaving an inheritance to your heirs or supporting your favorite charities.
Assess your financial situation
Whether you have funds set aside for donations or are planning to give in the future, take stock of your current financial situation.
For those looking to grow their donation potential, investing in low-risk mutual funds may help you achieve your giving goals. If so, continue to steps 2 and 3.
If you’re currently in retirement, you may be ready to make immediate donations and can do so by completing the distribution request form.
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Select a Homestead Funds account
You can use a standard individual or joint taxable account for almost any type of giving. But other account types might be better in some situations. For example, you can support a child by contributing to a Uniform Gift/Transfer to Minor Account (UGMA/UTMA). If you’re retired, you might be able to save taxes by donating the required minimum distributions from your Traditional IRA to a favorite charity. Donations from trust accounts may be beneficial if you have a large estate. There are many rules and restrictions involved, though, so you should discuss your options with a tax or financial advisor.
Account types appropriate for this goal:
- Individual or Joint Taxable Account
- Traditional IRA
- Roth IRA
- Education Savings Account
- UMA/UTMA Account
- Trust Account
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 they are 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.
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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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