If a smoker in Indiana in the year 2000 decided to quit smoking and instead, invested that cigarette money into the S&P 500, that ‘smoke to stocks’ strategy would now be worth $225,000.
If a husband and wife both smoked a pack per day and followed this strategy together, their joint account would now be worth over a half million dollars. $550,000 to be exact.
The magic of compounding earnings and interest and taking advantage of the investment opportunities around us can be staggering, if looked through the lens of this “what if” scenario.
As we approach the New Year, a smoker may want to use this data as one more incentive to reduce the tax money contributed to the Indiana State Government and instead, invest this into your family’s future.
Lighting money on fire daily is also a drag on health, which also costs money and cuts lifespan. But smokers likely already know this better than anyone.
Here is the math, with a few reasonable assumptions:
