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A Lottery Retirement?

Let’s play a little make-believe, shall we?


I just won the lotto!  Holy cow!  I’m jumping up and down!

I’m just so excited, but, you know, I’m not overwhelmed at all.  I have a plan. 


My I-Just-Won-The-Lottery Plan:

1. Take the cash option.  This article does a pretty good job of explaining why, but that’s not important.  I’m not really ever going to win the lotto, I’ve accepted that (and you should too).

2. Split the winnings equally with family.  They’ll have to come accept it with me so that we can avoid double taxation. 

3. Immediately give at least 10% to charity and encourage the others to do the same.

4. Buy that Kitchenaid Mixer attachment I’ve had my eye on and a new tool and/or hat for Husband.

5. Find appropriate investments for the remaining money (ABSOLUTELY find a good Certified Financial Planner).

6. Continue with life as usual (albeit a bit more financially secure), we are much too young to not work.

What do you think?  What would you do differently?  How does your plan look?  That’s right, I know you have a plan.  I’m not stalking you or anything creepy, I just know that everyone has one. 

I’ve surprised a few people by buying a lottery ticket every now and then.  If it’s the 13th (my lucky day), I actually have $1 in cash (very rare) and I remember that the lottery exists (if there is a billboard to remind me), I’ll go ahead and take the plunge.

Frankly, sometimes I get more entertainment out of that $1 than going to the movies for $8+.  The lottery should be viewed as just that: entertainment.  Right?


Well, prepare to be disturbed. 

According to a CFA/Primerica 1999 survey:

A Majority of Americans in households with incomes of $35,000 or less believe that they are more likely to accumulate a $500,000 nest egg by winning a lottery or sweepstakes (40%) than by patient saving and investing of relatively modest sums (30%).


  • Most people (obviously me included) fantasize about winning the lottery.  Fantasy just has no place in actual financial planning. 
  • The study also revealed that those who need to save the most (the young, the poor, and the uneducated) are the least likely to do so.
  • This table from the Tax Foundation shows that even pint-sized investments can make a difference in the long run.  Even if you aren’t a lotto player, just a $5 monthly cutback anywhere in your budget can add up pretty significantly.




Article publié pour la première fois le 29/09/2010