Turkey Talk: 5 Financial Questions Advisors Hear at Thanksgiving

Thanksgiving brings more than just turkey and cranberry sauce; it's a time for family, warmth, and candid conversations, especially about finances. It's natural for money topics to surface around the holiday table, and we're here to share the five financial questions advisors often get asked during this festive time.

The Power of Compound Interest

Ever wonder how your savings can grow beyond your initial investment? Welcome to the magic of compound interest, often described as “interest on interest.” For example, $10,000 invested with a 7% annual return can grow to over $76,000 in 30 years. The takeaway? Start early and stay consistent.

Benchmarks for Savings Goals

Setting savings goals can often feel overwhelming, but some general benchmarks make it easier. Aim to save 15–20% of your gross income annually. By age 35, aim for 1–2x your salary saved, and by retirement, aim for 10x. Remember, consistency is more important than perfection.

Principles of Financial Independence

Imagine having the freedom to switch to a more fulfilling career despite a pay cut, to move closer to your tribe or to choose when to retire. That's financial independence. To achieve it, live within your means, avoid lifestyle creep, and be cautious about overbuying on housing. It's all about control over your financial destiny.

The Value of Diversification

Thinking of what's hot to invest in now? Consider this: Diversification across various asset classes, sectors, and geographies can reduce risk and support long-term stability. It's not about timing the market; it's about time in the market.

The Case for Long-Term Investing

Trying to time the market can be tempting but often leads to unnecessary stress. Instead, stick to a long-term plan, ride out market volatility, and focus on consistent growth to achieve your financial goals.

As you reflect on your Thanksgiving conversations, consider any financial topics you've discussed—or wish you had. Asking questions is a wise step toward better financial health. Feel free to reach out with any follow-up questions, or let's start a personalized planning discussion today.