Friday, November 10, 2006

How Much Smoking Really Coasts

In the United States the average coast of a pack of smokes is about $4.35. If the average smoker smokes a pack a day, he or she will have spent $1,600 on cancer sticks in a year! Ridiculous.

So what would happen if you invested this cancer money? Let me show you.

Scenario #1 - Investing in a money market account with an annual yield of 4%:

Year
Balance
5 $ 9,014
10 $ 19,980
15 $ 33,322
20 $ 49,554
25 $ 69,302

Scenario #2 - Investing in a mutual fund with an annual yield of 8%:

Year
Balance
5 $ 10,138
10 $ 25,033
15 $ 46,920
20 $ 79,079
25 $ 126,331

Wow, don't you smokers feel like ass holes?