Turkey Talk: 5 Financial Conversations Over Thanksgiving

Thanksgiving is a time for family, food, and conversations that often wander into financial territories. While you carve the turkey, you might find yourself navigating discussions about money. Here are five financial topics that advisors are frequently asked about during this festive season.

The Power of Compound Interest

Compound interest can be a financial game-changer. It’s essentially “interest on interest,” which can lead to substantial growth over time. For instance, investing $10,000 at a 7% annual return can grow to over $76,000 by age 65. Starting early and consistently is key.

The Value of Diversification

Rather than chasing the “hot investment,” spreading your money across asset classes, sectors, and geographies can reduce risks and promote long-term stability. Talk to your advisor about creating a diversified portfolio that aligns with your goals.

Principles of Financial Independence

Financial independence means having the freedom to choose your retirement age. Achieving it requires living within your means, avoiding lifestyle inflation, and not overspending on housing. These choices can provide greater control over your financial future.

Benchmarks for Savings Goals

General savings benchmarks suggest setting aside 15–20% of your gross income yearly, aiming for 1–2x your salary by age 35, and reaching 10x by retirement. Remember, consistency trumps perfection. Adjust these benchmarks to fit your personal circumstances.

The Case for Long-Term Investing

Market timing can be tempting but sticking to a long-term plan helps ride out market volatility and focus on consistent growth. Discussing your investment strategy with a financial advisor can ensure it supports your life goals.

As you ponder these topics this holiday, consider any financial discussions you've had—or wish to have—and remember that asking questions is the first step toward financial health. Feel free to reach out to us for more personalized planning.

 

Advisory Services offered through LexAurum Advisors, LLC, an SEC-registered investment advisor.