5 Financial Topics People Ask Over Thanksgiving

Ah, Thanksgiving—a time for family, food, and those inevitable money conversations around the dinner table. As financial advisors, we often get approached during this festive time with questions that pop up as naturally as turkey and cranberry sauce. Let’s dive into the five most frequent financial topics we encounter this time of year.

The Power of Compound Interest

You’ve probably heard the term "interest on interest," but what does it really mean? Imagine investing $10,000 at a 7% annual return. By the time you’re 65, that grows to over $76,000! The key takeaway? Start early and stay consistent to make the most of compound interest.

Benchmarks for Savings Goals

When it comes to saving, benchmarks can guide your progress. Aim to save 15–20% of your gross income yearly. By age 35, try to have 1–2 times your salary saved, and 10 times by retirement. Remember, consistency trumps perfection.

Principles of Financial Independence

Financial independence means having the freedom to choose your retirement age. How do you get there? Live within your means, avoid lifestyle creep, and be cautious about overbuying on housing.

The Value of Diversification

Instead of jumping on the latest investment trend, think long-term. Spread your investments across different asset classes, sectors, and geographies. This approach reduces risk and supports long-term stability.

The Case for Long-Term Investing

Trying to time the market? That’s a risky game. Instead, focus on sticking to a long-term plan. Ride out market volatility and aim for consistent growth over time.

This Thanksgiving, as you reflect on financial conversations you’ve had—or wish you had—remember, asking questions is a smart step toward better financial health. Feel free to reach out for further discussions or to start crafting a personalized financial plan.