So yesterday I got to thinking about how I would be impacting my retirement account by taking out the $2000.00 for the emergency root canal procedure I bought myself yesterday. How would that money have worked for me over the next 40 years till retirement? Well, if I would have just had that $2000.00 and never added any more too it, compounding interest (at a standard 10%) would have made me ~$78,500 by 2047! That’s the power of compounding interest! Look at the graph here (click to enlarge):
Well, that’s a good chunk of change I just flushed away on teeth problems. Well, technically it could kill you if you keep an abscessed tooth in, but that’s beside the point, we’re talking retirement money here!