According to CNBC, Americans spend $900,000 each month on Avocado toast, with single servings priced as high as $19. The $19 price might not seem that high for a once in the blue moon purchase but spending this consistently is quite costly. If you were to consume $19 avocado toast 3 times per week, each week for a whole year, your total cost would be just under $3,000 ($2,964) and if you indulged 4 times per week, the total cost would jump to $4,000 ($3,952). At close to $4,000/year, this amount could be invested into a Roth IRA (2021 max contributions is $6,000 for people under age 50).
You might ask yourself, what is a Roth IRA? A Roth IRA is a special individual retirement account (IRA) that is funded with after-tax dollars (the money you would spend on avocado toast). The earnings will grow tax free and then all future withdrawals will become tax-free. Who doesn’t like the taste of tax-free money?
Branden has been a key member of the Independent Financial Services (IFS) team since 2013. He is a Financial Advisor, Portfolio Technician, Certified Financial Planner, and Accredited Asset Management Specialist. Branden’s professional registrations include the Series 7, Series 66 as well as Florida Life, Health and Variable Annuity insurance licenses. As a Financial Advisor, Branden develops financial plans for clients which includes creating and modeling different possible financial scenarios, preparing client reports along with providing key recommendations for helping clients achieve their financial goals.