Turkey Talk: 5 Financial Topics for the Thanksgiving Table

The holiday season is upon us, and as families gather around the table, financial questions often become a part of the conversation. Here are five key financial topics advisors frequently discuss during Thanksgiving dinners.

The Power of Compound Interest

Understanding the concept of "interest on interest" can be eye-opening. For example, $10,000 invested at an annual return of 7% can grow to over $76,000 by age 65. The key? Start early and stay consistent.

Benchmarks for Savings Goals

Setting realistic goals is essential. A good start is saving 15-20% of your gross income each year, aiming for 1-2x your salary saved by age 35, and reaching 10x by retirement. Remember, it's about consistency, not perfection.

Principles of Financial Independence

Financial independence means having the freedom to choose your retirement age. Tips include living within your means, avoiding lifestyle inflation, and being cautious with large expenses like housing.

The Value of Diversification

Instead of chasing the latest investment trends, focus on diversifying across different asset classes, sectors, and geographies. This strategy reduces risk and supports long-term stability.

The Case for Long-Term Investing

Market timing can be tempting, but it often leads to disappointment. Stick to a long-term plan, weather the market's ups and downs, and aim for steady growth.

Finally, take a moment to reflect on any financial discussions you've recently had, or wish to have. Asking the right questions is a smart step toward financial health. Feel free to reach out for more personalized planning discussions.