Stay Invested in Your Goals During the Holidays


Don’t Let the Holidays Derail Your Investment Goals

If you feel tempted to withdraw from your investment account during the long holiday season, you’re not alone. Many investors consider dipping into their long-term savings or investments during the holidays due to the additional expenses that the season brings (e.g., travel, presents, holiday parties). In fact, the average American spent $658 on holiday spending in 2018, according to Accenture’s Annual Holiday Shopping Survey.

But stay strong! Holiday splurges are not worth dipping into your investment account and derailing all the progress you’ve worked so hard for. There are ways to enjoy your holidays for less, without needing to spend so much and set yourself back.

Compound 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 that 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. If withdraw from your investment account, you’ll have to start building all over again.

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 withdraw 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 Saving Spirit

Members of MoneyLion can use their managed investment accounts to invest 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 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 Plus Loans and 0% APR Instacash cash advances up to $250*. Learn more in the MoneyLion app.

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 where you’re going. Don’t let the holiday hubbub stop you from achieving your long-term goals. Instead, try these holiday budgeting tips. 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 Checking Account provided by, and MoneyLion Visa® Debit Card issued by, Lincoln Savings Bank, Member FDIC. Terms and conditions apply.

Investment advisory services provided by ML Wealth, LLC. Investment Accounts Are Not FDIC Insured • No Bank Guarantee • Investments May Lose Value. For important information and disclaimers relating to the MoneyLion Investment Account, see Investment Account FAQs and FORM ADV. Broker-Dealer may charge a $0.25 withdrawal fee, among other fees. Funded accounts are subject to administrative fee of $1 per quarter.

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