January 2016

22 Jan

The Lottery Is No Retirement Plan

Pay yourself first instead, with your future in mind. Powerball fever swept across America in January, with a record jackpot of $1.5 billion eventually split by three winners in the January 13 drawing. Millions lined up for lottery tickets, hoping to realize their dreams of being rich, independent and carefree.1,2 This infinitesimal chance at massive wealth was certainly alluring—to too many, more alluring than the practical steps that can be taken in pursuit of personal wealth and retirement security. The passion for Powerball defied logic. It may have been a commentary on our wishful thinking, and on the lack of financial literacy in America as well.