The holiday season, filled with turkey, stuffing, and vibrant conversation, often brings financial topics to the table. It’s natural to discuss money matters alongside festivities, and I'd like to share five key financial topics that are frequently asked around this time of year.

Principles of Financial Independence

Financial independence grants you the freedom to retire when you choose. It revolves around living within your means, avoiding lifestyle inflation, and making wise purchasing decisions, especially regarding large investments like housing.

The Power of Compound Interest

Understanding “interest on interest” is crucial for financial growth. For instance, $10,000 invested at a 7% annual return can grow to over $76,000 by age 65. Starting early and maintaining consistency are key to harnessing this power.

The Value of Diversification

Instead of chasing the latest investment trend, it's wise to spread your investments across different asset classes and geographies. This strategy mitigates risk and supports long-term financial stability.

The Case for Long-term Investing

Market timing isn’t foolproof. A robust long-term investment plan involves enduring market volatility while focusing on sustained and consistent growth over time.

Benchmarks for Savings Goals

Aim to save 15–20% of your gross income annually. As milestones, aim for having 1–2 times your salary saved by age 35 and 10 times by retirement. Regular contributions outweigh trying to achieve perfection.

This Thanksgiving, as conversations turn to finance, reflect on your own financial discussions and remember that asking questions is a smart move towards better financial health. Feel free to reach out for more personalized guidance or to kickstart a planning discussion.