Study in 2006 Shows 21% Rely Upon Lottery Tickets As Retirement Plan

 

Better Than Lottery Tickets
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On 8/9/2013 I published a post with the title…

Does Your Financial Plan Rely Upon Buying Lottery Tickets?

I was very pleased and pleasantly surprised to receive a response from Jerry Kalish, President of National Benefit Services, Inc., a Chicago-based retirement plan consulting, actuarial, and administration firm that helps employers get their retirement plans from where they are now to where they need to be. The firm’s clients include U.S. employers and multi-national employers with U.S. operations.

Published in LinkedIn and on The Retirement Plan Blog by The National Benefits Services…as follows…

Gambling on retirement, part deux

By Jerry Kalish

Actually, a surprising large number of people believe that the most effective wealth building strategy is winning the lottery which I reported on in my 2006 blog post, http://tinyurl.com/GamlingOnRetirement .

A 2006 survey of about 1,000 Americans by Opinion Research Corporation conducted for the Consumer Federation of America and the Financial Planning Association found that one in five Americans (21%) survey thought playing the lottery was their most practical strategy for accumulating several hundred thousand dollars.

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As I read the results of this study it causes me to think and ask…are people relying upon buying lottery tickets  for their financial plan because…

  •      They actually think this is a good option?
  •      They have never been informed about developing a plan for retirement?
  •      If they could see the value of having a retirement plan would they do it?
  •      Have they just given up on developing a retirement plan for many reasons?

In any case 21% or more than 42 million people are gambling by throwing good money at bad opportunity. If the odds are 15 million to 1 to be able to win the lottery…you would need to play the lottery a lot in order to have decent odds…this is just gambling…not a plan at all…  and it is true that if you use money to buy lottery tickets that money can’t go to your retirement savings plan.

Does this information raise any questions with any readers of this post? If so…I ask that you “Leave A Reply” below or give me a comment dannorris42@gmail.com.

Lottery Retirement Plan


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Dan Norris

Small Business Consultant

Author

Does Your Financial Plan Rely On Buying Lottery Tickets?

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Today’s post is on one of my favorite topics…

Does Your Financial Plan Rely On Buying Lottery Tickets?

Most everyone that I know nowadays is saying…I wish I had more money to manage…however where there is a will there is a way…and many are saying… I am making great progress every day towards my goal of financial independence…that time when I am in total control of my time and my lifestyle…and I have no financial concerns ever for the future other than properly managing my wealth.

Yesterday we saw the Minnesota gentleman Paul White who won the $86 Million (before taxes) as his third of the Powerball Jackpot…he kidded about a family gathering recently where he was identified as the one most likely to rely upon winning the lottery as being “his financial plan”. This gentleman and his family and friends (see video below) are one lucky group as the odds for winning a 6-ball Powerball Lottery are in the range of 1 in 15 million. If you like these odds to plan your future then go for it…and I wish you luck. I prefer to rely upon the philosophy of hard work, committed to goals, never give up approach to achieving lifelong dreams approach…how about you?

And that opens dialogue on my next post for a series of pragmatic, practical recommendation steps that can be very valuable in helping you to reach your goals. I am going to give these suggestions as steps on  “The Road To Financial Independence” that I have found to be really important. I am speaking as a layman, with a lot of personal and professional experience, to share with you financial experiences so that you can proceed to the next level of learning and professional assistance whenever your situation justifies that you do so.

At the outset I want to make it clear that I truly support and recommend professional “comprehensive financial planning” for anyone that wants to improve themselves financially. By professional “comprehensive financial planning” I mean with those financial advisors who are truly qualified and act in the best interests of their clients. At the same time I am very reluctant to recommend everyone who calls themselves a “financial advisor” or “investment advisor”. These terms are so misused and vague that to me it does not have real meaning. My recommendations do not include those who just want to work with your investment assets like stocks, bonds, or commodity investments like gold and silver. Financial decisions affect all aspects of our lives and for a professional to give advice on financial matters to an individual I firmly believe that any recommendations should be based on information that includes a full understanding of the individual’s goals and risks owning the assets. Investment advisors certainly have a place in the financial advisory community however I do not include these individuals as clients in my target readers.

If you are committed to achieving financial independence for you and those that you love, if you haven’t already done so, I encourage you to research the subject of “comprehensive financial planning” and to meet with three or more advisors to make a selection of whom you would most prefer to partner with to receive professional financial advice and guidance. Let them recommend your best actions and approaches on all of your key financial issues. I believe very strongly in the value of benefitting from professional services and “comprehensive financial planning” by an experienced qualified financial advisor. They can help you grow, manage and protect your assets much better with their professional knowledge.

So with this introduction to the first in a series of several financial recommendations…I know that not everyone will go out tomorrow and select a financial advisor for comprehensive financial planning however I want you to get started on the process… beginning with some of the most important initial steps. The first step I will feature in my next post is one of the key subjects of a comprehensive financial plan…that of a “Cash Reserve”.

In personal finance, cash reserves are primarily short-term, highly liquid investments that earn a low rate of return that individuals want to have quick access to…for purposes of  meeting short-term, emergency or opportunity funding needs. We will discuss how much is recommended, how to create your cash reserve, where it should be kept and why it is so very important to your financial well-being!


Powerball Winner Paul White Hilarious Press Conference After Winning $149 million Prize
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Dan Norris

Dan Norris

Small Business Consultant

Author