Are You Flushing One Million Dollars Down the Toilet?

Every money-spending decision you make today has a huge impact on your future finances and the sad part is you probably just don't get it. Most of you are flirting with financial suicide and you don't even know it.

Let's say you're 30 and your friends have asked you to join them on a two-week trek in Tibet that will set you back $3,000. Yes, that trip sounds amazing, but let's understand the impact of forking over the $3,000. If it had instead been invested in a solid low-cost mutual fund such as the Vanguard Total Market Index fund within your ROTH IRA, and your investment earns the long-term average return of about 10 percent a year, you're looking at having $84,300 by the time you hit 65. And what if you keep making that $3,000 investment each year? You will have an incredible $978,690 by 65. That's nearly $1 million, folks! And if it's in a Roth, it's tax-free. Now while you may enjoy trekking through the Himalayas, and meditating on the silence of the wind, I can almost guarantee that when you are 65 and sitting on $1 million tax-free dollars, the view from atop your massive retirement mountain will far surpass your faded memories and frostbitten toes from the highest peaks.