Gurdayal Singh | Nov 13 2025 16:00
Thanksgiving is a time for family, gratitude, and the occasional spirited conversation as you pass the stuffing. It’s also a great time to dive into those financial topics that often come up between bites of turkey and cranberry sauce. Let's explore five common questions financial advisors get asked during the holidays.
The Power of Compound Interest
One popular topic is compound interest, also known as "interest on interest." Imagine starting with $10,000 and watching it grow to over $76,000 by age 65 with a 7% annual return. The key takeaway? Start early and stay consistent. It might be a simple principle, but it's a game changer when it comes to building wealth.
Principles of Financial Independence
Financial independence is another frequent discussion point. It's all about having the freedom to choose when and how you retire. Consider tips like living within your means, avoiding lifestyle creep, and not overspending on housing. Financial independence is more than just a dream; it’s achievable with the right mindset.
Benchmarks for Savings Goals
How much do you need to save? General benchmarks can help: aim to save 15–20% of your gross income each year. By age 35, you should aim to have 1–2x your salary saved, and by retirement, around 10x. Remember, consistency is more important than perfection.
The Value of Diversification
In the world of investing, diversification is king. Avoid the trap of chasing the latest "hot investment." Instead, spread your investments across different asset classes, sectors, and geographies to manage risk and support long-term growth. It’s the secret sauce to a stable portfolio.
The Case for Long-term Investing
Lastly, let's talk long-term investing. Timing the market can be tempting but often leads to stress and mixed results. Stick with a long-term plan, ride out the market's ups and downs, and focus on steady growth. It’s much more rewarding in the end.
As you enjoy your Thanksgiving meal, take a moment to reflect on any financial conversations you've been having—or wish you had. Remember, asking questions is always a smart step toward better financial health. Feel free to reach out with any follow-up questions or to start a personalized planning discussion. Happy Thanksgiving!
