Turkey Talk: 5 Financial Questions for Advisors

As the holiday season approaches, conversations around the Thanksgiving table often shift to financial topics. It's natural! Here, we'll explore five frequent financial questions that advisors tend to hear over the stuffing and cranberry sauce.

The Power of Compound Interest

Compound interest is all about "interest on interest." For instance, investing $10,000 with a 7% annual return can grow to over $76,000 by age 65. Starting early and remaining consistent is key to allowing compound interest to work its magic.

Benchmarks for Savings Goals

Advisors often get asked about savings benchmarks: aiming to save 15-20% of your gross income yearly, hitting 1-2 times your salary saved by age 35, and 10 times by retirement. The goal is consistency, not perfection.

Principles of Financial Independence

Financial independence means having the freedom to choose your retirement age. It's achieved by living within your means, avoiding lifestyle creep, and being cautious with housing expenses.

The Value of Diversification

Instead of focusing on "what’s hot now,” consider diversification. By spreading investments across different asset classes, sectors, and geographies, you reduce risk and support stability over the long haul.

The Case for Long-Term Investing

Advisors caution against attempting to time the market. Sticking to a long-term plan, weathering market volatility, and focusing on sustainable growth is a more reliable approach.

As you finish your holiday meal, think about any financial conversations you’ve had recently or wish to have. Remember, asking questions is a smart step toward better financial health. Feel free to reach out for a personalized discussion.