Accountant:
Do you drink beer?
Actuary:
Yes.
Accountant: How many beers a day?
Actuary: Usually about 3.
Accountant:
How much do you pay per beer?
Actuary:
$5.00 which includes a tip.
Accountant: And how long have you been drinking?
Actuary: About 20 years, I suppose.
Accountant: So a beer costs $5 and you have 3 beers a day which puts your spending each month at $450. In one year, it would be approximately $5400 correct?
Actuary: Correct.
Accountant: If in 1 year you spend $5400, not accounting for inflation, the past 20 years puts you're spending at $108,000, correct?
Actuary: Correct.
Accountant: Do you know that if you didn't drink so much beer, that money could have been put in a step-up interest savings account and after accounting for compound interest for the past 20 years, you could have now bought a Ferrari?
Actuary: Do you drink beer?
Accountant: No.
Actuary:
Where's your Ferrari?