The 50/30/20 Budget and Investing in the
Nasdaq-100 Index®

Navigating personal finance is akin to solving a puzzle with countless pieces. Among the strategies available, one principle stands out for its simplicity and effectiveness: the 50/30/20 budgeting rule. This rule divides your after-tax income into three categories: 50% for needs, 30% for wants, and 20% for savings and investments. While this model provides a solid framework for managing expenses, optimizing the allocation of that 20% towards investments is crucial for long-term financial growth.

Enter the Nasdaq-100 Index, a premier benchmark comprising 100 of the largest domestic and international non-financial companies listed on the Nasdaq stock exchange. Investing in the Nasdaq-100 Index offers diversified exposure to leading technology, consumer discretionary, and healthcare companies, making it an attractive option for investors seeking growth opportunities. But how does it align with the 50/30/20 budgeting strategy?

Allocating a portion of the 20% designated for savings and investments to the Nasdaq-100 Index can be a prudent move. One approach is to invest in a Nasdaq-100 mutual fund. These investment vehicles provide easy access to the performance of the index while offering diversification and liquidity.

By incorporating the Nasdaq-100 Index into your investment portfolio, you tap into the potential for long-term capital appreciation driven by innovation and technological advancement. Moreover, the historical performance of the index underscores its resilience and ability to deliver competitive returns over time. Since the index’s inception in 1985, it has achieved an annual return of 14.08% as of 3/31/24 (source: Bloomberg).

Investing in the Nasdaq-100 Index aligns with the ethos of the 50/30/20 budgeting rule by prioritizing long-term financial goals. While the 50% allocation for needs ensures financial stability, and the 30% for wants provides for indulgences and lifestyle choices, the 20% earmarked for savings and investments lays the groundwork for future prosperity.

The 50/30/20 budgeting strategy serves as a roadmap for financial well-being, and investing in the Nasdaq-100 Index complements this approach by fostering wealth accumulation and harnessing the potential of the stock market. By judiciously adhering to this budgeting model and embracing investment opportunities such as the Nasdaq-100 Index, individuals can embark on a journey towards financial empowerment and security.

Important Information

An investment in the Fund involves risk, including possible loss of principal. Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities.

The Fund invests in the largest non-financial companies that are traded on the Nasdaq Stock Market. They are currently concentrated in the technology sector which has been among the volatile sectors of the U.S. stock market. During a declining stock market, this fund would lose money. It would potentially lose more money than other large cap funds.

Nasdaq®, Nasdaq-100® and Nasdaq-100 Index® are trade or service marks of The Nasdaq Stock Market, Inc. which with its affiliates are the “Corporations”) and are licensed for use by the Fund. The Fund has not been passed on by the Corporations as to their legality or suitability. The Fund is not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the Fund.

It is not possible for individuals to invest directly in an index. Performance figures for an index do not reflect deductions for sales charges, commissions, expenses or taxes.

Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.

Investors should consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, visit www.sheltonfunds.com or call (800) 955-9988. A prospectus should be read carefully before investing. Diversification does not assure a profit or protect against lost in a declining market.

INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.