Turkey Talk: Key Financial Topics for the Holiday Table

Thanksgiving isn't just about turkey and cranberry sauce; it's also a time when families gather and dive into meaningful conversations—often including those about finances. Here are five financial questions that tend to surface around the holiday table, providing a perfect opportunity for a deeper understanding of key financial principles.

The Power of Compound Interest

One topic that often comes up is the magic of compound interest—earning "interest on interest." Picture this: starting with $10,000 and a 7% annual return could grow to over $76,000 by age 65. Beginning early and remaining consistent can significantly benefit your financial future.

A Benchmarks Guide for Savings Goals

Family members may wonder about savings targets. A common benchmark is saving 15–20% of your gross income annually. By age 35, aim to have 1–2x your salary saved, and 10x by retirement. The focus should be on staying consistent rather than achieving perfection.

Understanding Financial Independence

Financial independence often means having the freedom to choose your retirement age. Living within your means, avoiding lifestyle inflation, and not overbuying on housing are crucial steps to gaining control over your financial future.

The Value of Diversification

Conversations may also touch on investment strategies. It's important to debunk the "what's hot now" investing mindset. Diversifying investments across different asset classes, sectors, and geographies reduces risk and supports long-term financial stability.

Committing to Long-Term Investing

Finally, discussions often address the importance of long-term investing. It's wise to avoid timing the market. Instead, commit to a long-term plan, embrace the ups and downs, and focus on consistent growth.

As you gather with loved ones, reflect on recent financial conversations or those you wish to have. Remember, asking questions is a smart step toward better financial health. You're encouraged to reach out to discuss any financial questions or to start a personalized planning discussion.