If you’re smoking cigarettes, the amount of money you spend is way less than the actual cost. According to recent studies, you could be losing as much as $2,000,000 dollars over the course of your shortened lifetime due to smoking.
Now before you start hatin’ and trash this blog, please understand, I know what you’re thinking. I used tobacco back in my cowboyin’ days. It was kind of an unspoken rule, that if you rode bulls in the rodeo, you had to smoke cigarettes or dip snuff. Preferably, Copenhagen. You could use Skoal, but the REAL bull riders didn’t. Yes, I may be an insurance professional now, but I had “gold buckle” dreams as a kid and I figured if I was going to be a World Champion bull rider, then I had better act like one.
I know the effect the tobacco and smoking have on the body and how hard it can be to quit. Some even say it’s harder to quit than drugs like heroin and cocaine. I did quit for 5 or 6 years but in the back of my mind, I always wanted a pinch of snuff. So, I gave in and got hooked all over again. (Yes, I was addicted and if you smoke, so are you. Whether you like to admit it or not).
Finally, I had a “come to Jesus meeting”, and realized the horrible effect that tobacco was having on my body. I quit right then and there and have had no desire to start back up. So if I can do it, so can you.
Now, enough about me, let’s get back to the story of how you can have your retirement dreams.
According to a recent article by Zlati Meyer, Detroit Free Press, in USA Today, smoking burns up as much as $2 million dollars in a lifetime . This article shows the cost of not only the cigarettes over a lifetime but also the additional cost associated with higher rates for health insurance, homeowners insurance and loss of income due to time away from work.
“Yeah, blah blah blah. Tell me something I don’t know”.
O.K., have you ever heard of opportunity costs? That is described here and The New Oxford American Dictionary defines it as “the loss of potential gain from other alternatives when one alternative is chosen”. What this means is that you miss a better opportunity when you choose a lessor one. The opportunity for your retirement dreams are lost when you use that money to smoke cigarettes.
What opportunity costs am I talking about? Great question. Let’s look at just one option:
Did you know that some life insurance policies can build up a bucket of money called cash value? And that you can take money out of the cash value tax-free? You can read more about that here, but for now, let’s talk about your dreams.
First of all, what do your retirement dreams look like? Are you sitting on the beach of an exotic island sipping drinks with little umbrellas in them?
Or are you hiking your way through the trails of your favorite state park? (neat story here)
Maybe, you’re driving your you new luxury coach across the beautiful roads of America, seeing the places you’ve only seen on t.v?
Are you spending time with the grandkids, knowing that you don’t have to worry about how much it cost because you made some smart choices when you were younger?
Regardless of your dream, it is going to take money and probably more that your Social Security will provide, right?
So, going back to the numbers, let’s say that you spend around $200 per month for cigarettes. If you started at age 20 and wanted to retire in 40 years at 65, that would be a total of $96,000 just spent on smoking. Of course, this doesn’t account for inflation and higher cigarette taxes, but to keep it simple, let’s stick to the $96K.
So, I did an illustration for an insurance policy and paid the $200 monthly premium in until I reached 65 and then started taking out loans against the death benefit. Wonder how much I received each year? Any guesses? $5,000, $10,000? More? I mean we’re only talking about $200 a month, right?
Yes! I was able to have a little over $18,000 PER YEAR for the rest of my life! And if I don’t die until I am 100, there is still about $120,000 left in the policy to go to my beneficiaries, TAX-FREE!
WHAAAT? That’s way more than I even put in! (oh, by the way, my little ole $18,000 each year is also tax-free) Talk about opportunity?!
Now, tell me what your retirement dreams look like with over $18,000 per year more than your Social Security and other retirement plans you have. Do you see yourself on the beach? or hiking the trails with your grandkids?
All because you made the smart choice and quit smoking. And you will be in better health which will allow you to physically do these things, which is a nice bonus, huh?
So, please, do yourself and your family and friends a HUGE favor, and quit smoking, NOW! It will pay dividends back to you for the rest of your life.
Your retirement dreams are waiting!
If you would like to discuss how life insurance may work for you, please contact me by email at email@example.com and I would be glad to answer any questions you may have.
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