Skip to main content
Lifevent hero
• Sep 30, 2024



Life is marked by significant milestones deserving of celebration. Whether it is the blissful moment of committing to the person you are going to spend the rest of your life with, or the party thrown for your toddler who suddenly is turning sixteen years old, your wallet may feel the pressure of party-planning.

According to Ashley Weeks, a Wealth Strategist at TD Wealth®, such celebrations do not have to come at the cost of your savings account. Read below for his tips on how to financially plan for your once-in-a-lifetime celebration without breaking the bank.

Break Free of Emotional Entanglement

Maybe this is the moment you have been waiting for, or a milestone you cannot believe has arrived. Emotions are high, and there is a clear buzz of excitement you feel sweeping not just through you, but your family and friends.

When creating a financial plan for your event, clear and consistent communication between all stakeholders is crucial. Setting expectations up front and researching costs may help to avoid disputes that arise between you, your family, or your vendors during the planning process. While you are celebrating an emotional milestone, the financial planning must be logical and factual to meet your financial needs.

Set a Budget…and Stick to It

With vendors and family members whispering into your ear, “This is your special day… don’t you want only the best for your special day?” it can be easy to get carried away with the budget. “Budget creep” tends to seep into event planning- make sure to stick to what you had originally planned.

Hiring a professional event planner to negotiate fees with vendors, handle logistics, and provide an approximate estimate of what the costs are, may save you money in the long run. Even buying an hour or two of a professional event planner’s time to get a scope of the costs may help you determine what the important versus superfluous costs are to you and your family. As you go through the planning process, it is important to remain committed to your budget. If one element of the event is going to cost more, pull money from somewhere else. While this can be challenging, setting those expectations early on may help you avoid going over-budget.

One Event Versus Lifetime Goals

If you are balancing paying for an event with long-term financial goals, it may be beneficial to maintain an emergency account. On a “rainy day”, you can pull money from there with the understanding you will replenish it in the future. Having this kind of account can prevent a lot of financial destruction in the event of an emergency or unexpected event. Keep up with your regular retirement plan contributions and try to remain balanced. Avoiding debt, especially high interest consumer debt, is crucial to ensuring your event does not intervene with your long-term goals.

Tax and Insurance Implications

If you are tempted to pull money from a retirement account, such as a traditional IRA or 401(k), to pay for your event, it is important to be aware of tax consequences. When you pull money from a retirement account, it is treated as ordinary income. This means that it will be included in your taxes, and taxed higher than long-term capital gains or qualified dividends. Additionally, retirement account withdrawals before age 59 and a half may be subject to a 10% penalty. Thus, it is important to weigh the costs of withdrawing from such accounts and plan for the extra taxes you would owe if you were to do so. If a person gives you more than $18,000 in 2024, they may be required to file a gift tax return that eats away at the estate exemption.

Managing Payments

When managing payments, it is important that you stick to your budget. If you are using credit cards to pay your vendors, ensure that you are carefully tracking your payments and not overspending by accident.

Any time you fund a large event, such as a wedding, be aware that you are taking away funds from a portfolio that could be invested for the long term. Compound interest calculators are a great tool to assess what the long-term impact of having those marginal extra dollars invested would be. Be wide-eyed when you plan to avoid budget creep and have an incredible, well-planned celebration.

Holding yourself to the initial budget and prioritizing your specific wants ensures a celebration that will be remembered by you and your loved ones, but not your financial accounts.

For more on personal finance topics

If you have more questions about personal finance topics that matter to you, visit the Learning Center on TD Bank’s website. You can find out more information about TD Bank's services at td.com

We hope you found this helpful. This article is for informational purposes only and is based on information available as of September 2024 and is subject to change. This content is not intended to be used or acted upon with respect to any client's specific circumstances. For specific advice about your unique circumstances, consider talking with your qualified professionals.

TD Bank, TD Wealth® and their employees do not provide legal, tax or accounting advice.

TD Wealth® Disclaimers

TD Wealth® is a brand of TD Bank N.A., Member FDIC (TD Bank). Banking, investment management and trust services are available through TD Bank.

Securities and investment advisory products are available through TD Private Client Wealth LLC, a U.S. Securities and Exchange Commission registered investment adviser and broker-dealer and member FINRA/SIPC (TDPCW). TD Bank and TDPCW are affiliates.

The information contained herein is current as of September 2024. The views expressed are those of the guest author and are subject to change based on tax and other laws. The information provided here is for educational purposes only.

The planning and investment strategies discussed herein are not intended to provide professional, investment or any other type of advice or recommendation, or to create a fiduciary relationship. You should not make any retirement or investment decisions in reliance on this material, which is intended to provide only brief comments on the topics addressed and is based on information that is likely to change without notice. TD Wealth® is not responsible for any loss sustained by any person who relies on this article.

The planning and investment strategies discussed herein are not a solicitation to invest in any specific investment product or vehicle. Keep in mind that investing involves risk including the risk of loss of the entire investment.

Federal and state tax rules and requirements are subject to frequent change. TD Wealth® does not provide legal, tax or accounting advice to its clients. Consult with your personal attorney, independent tax advisor and accountant/CPA for a complete analysis of the legal and tax implications applicable to your particular situation.

No part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission. All rights reserved. All trademarks are the property of their respective owners. The TD logo and other trade-marks are the property of The Toronto-Dominion Bank or a wholly-owned subsidiary, in Canada and/or other countries.

©2024, TD Bank, N.A.

Want to learn more about Money matters?
How to Avoid Being a Victim of Cyber Fraud
How Your Beliefs About Finances Can Impact Your Life
Get the Scoop on What You Need to Know About Doggy Daycare

Join our newsletter

Sign up for the latest updates from TD Stories delivered to your inbox twice a week.

See you in a bit

You are now leaving our website and entering a third-party website over which we have no control.

Continue to site Return to TD Stories

Neither TD Bank US Holding Company, nor its subsidiaries or affiliates, is responsible for the content of the third-party sites hyperlinked from this page, nor do they guarantee or endorse the information, recommendations, products or services offered on third party sites.

Third-party sites may have different Privacy and Security policies than TD Bank US Holding Company. You should review the Privacy and Security policies of any third-party website before you provide personal or confidential information.