GOAL: Celebrations

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.

Get Started in 3 Easy Steps
Step 1

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.

Step 2

Select an 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.

  • Suggested for this goal
  • Could also work for this goal
  • Not typically used for this goal
Step 3

Choose your funds

You may want to consider funds with low volatility, such as Homestead’s Daily Income Fund or Short-Term Bond Fund. But depending on how long you plan to save up, you might look into a blended portfolio that includes a small amount of a conservative stock fund, such as Homestead’s Value Fund. Equities carry higher risk and aren’t right for everyone, but historically they have delivered higher long-term returns. Regardless, when you’re just a year or two away, it will be time to move to a money market fund to reduce your risk exposure.

Saving for a special occasion is typically one component of a broader financial plan. Once you’ve met your goal, you’ll want to continue to focus on your longer-term objectives, such as retirement.

Your next step:
You can open an account in any of our funds online today. If you need help deciding which fund or combination of funds is right for you, visit the Make a Plan page.  Or, call the Homestead service line at 800.258.3030 and choose option 2.

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