Turkey Talk: 5 Financial Topics Advisors Discuss at Thanksgiving

Thanksgiving isn't just about turkey and pie—it's also a time for conversations that dig deep into topics that matter most, like personal finance. Between bites of stuffing and cranberry sauce, financial discussions often surface, shedding light on questions that many ponder. Here are five financial topics that advisors frequently discuss around the Thanksgiving table, hoping to serve as your go-to guide this season.

The Power of Compound Interest

Compound interest is the gift that keeps on giving—often referred to as "interest on interest." Imagine investing $10,000 with a 7% annual return. By age 65, this could grow to over $76,000. The magic lies in starting early and staying consistent, leveraging time to grow your wealth.

Benchmarks for Savings Goals

Setting savings goals is crucial. General benchmarks suggest saving 15-20% of your gross income annually. By age 35, aim for 1-2 times your salary saved, and by retirement, about 10 times. Remember, consistency triumphs over perfection on this savings journey.

Principles of Financial Independence

Financial independence means having the freedom to decide when to retire. It’s about living within your means, avoiding lifestyle creep, and not overspending on housing. These principles guide many towards a financially secure future.

The Value of Diversification

Forget the “what’s hot to invest in now” mindset. True diversification involves spreading investments across asset classes, sectors, and geographies. This strategy reduces risk and supports long-term stability, helping you sleep easy even when markets fluctuate.

The Case for Long-Term Investing

Timing the market is a risky gamble. Instead, focus on a long-term investment plan. Riding out the lows and holding steady leads to consistent growth over time, ensuring your financial health endures through the years.

As you gather around the table this Thanksgiving, reflect on the financial conversations you’ve had—or wish you’d had. Asking questions is a vital step towards financial well-being. Feel free to reach out with questions or to start a personalized planning discussion. Embrace the opportunity to talk turkey about finances this season!