Stay strong and invest on during the holidays

The holidays can cause temptation for investors

Are you feeling pressure to withdraw from your investment account this holiday season? Many investors consider dipping into their long-term savings during the holidays due to the additional expenses that the season brings (i.e., presents, holiday parties, and travel). In fact, the average American plans to spend $658 on holiday spending alone in 2018, according to Accenture’s Annual Holiday Shopping Survey, which is a big chunk of change for many.

We’re here to tell you if you withdraw from the investment account you’ve worked so hard to build up, you could seriously set yourself back.

Compounding interest: The gift that keeps on giving 🎁

If you prematurely withdraw funds from your investment account when holiday wish lists come calling, you could miss out on future ==compound interest==. With compounding, your investments have the opportunity to grow exponentially over time. This means, not only does your initial investment generate returns, but your past returns also generate returns — like a snowball effect more magical than Frosty the Snowman. 😂 Seriously, this is a powerful tool for investors to create wealth that you don’t want to miss out on.

How does compounding work?

If you invested $658 (the average amount Americans spend during the holidays) every December for five years, and earned 3% interest compounded annually, you’d have $4,361.02 (after five years). This means that you would have earned $1,071.02 in interest, but, that’s only if you don’t touch your funds!

Market timing matters ⏰

Good things come to those who wait, and that applies to more than just the gifts under the tree. If you’re withdrawing investment funds for holiday expenses because of negative market swings, you may want to think again. Withdrawing from your investment account when the market is down could cause you to miss out on gains when it goes back up, and you may have to pay a higher price just to get back into the same investments you sold. That’s like returning a holiday purchase to get less cash than what you originally paid — just a bad deal all around.

MoneyLion members have the holiday spirit

Members of MoneyLion are invested in a number of carefully selected ==exchange-traded funds (ETFs)== based on their individual risk preferences. That is, MoneyLion portfolios are managed in a thoughtful way to help cushion against the impact of market swings. We encourage our investors to focus on their long-term goals and to resist the temptation to withdraw their funds because of a short-term need (like holiday gifts). Investors should continue earning compound interest by leaving their investments alone, potentially helping their portfolios grow bigger over time.

MoneyLion also offers solutions designed to help with short-term expenses, like anytime access to 5.99% APR Credit Builder Loans and Instacash℠ cash advances up to $250* with an eligible MoneyLion Checking account. Learn more in the ==MoneyLion app== or at

Look how far you’ve come 🎉

If you’re feeling the pressure to withdraw from your investment account during the holidays, just think how far you’ve come and all the gains you could erase. Don’t let the holiday hubbub derail you from achieving your long-term goals. Instead, try these holiday budgeting tips, so you can set aside some cash for gifts. You’ve got this!

Although we recommend not withdrawing from your investment accounts for short-term expenses, the decision about whether to withdraw investment funds is ultimately a personal one that rests with the investor.

*MoneyLion Banking account provided by partner bank, Member FDIC. Cash Advance requires MoneyLion Bank Account and Direct Deposit. See Banking and Cash Advance FAQs for more information.

Investment Accounts Are Not FDIC Insured • No Bank Guarantee • May Lose Value. For important information and disclaimers relating to the MoneyLion Investment Account, see Investment Account FAQs and FORM ADV. *Broker-Dealer charges a $0.25 withdrawal charge.

*MoneyLion Checking Account and Direct Deposit required.