A lottery ticket is not a retirement plan

But tell that to my mother.

She thought a lottery ticket is her only key to retirement. Thank goodness we’re working her out of that mindset.

The scary thing is that there are many people who also believe that!

20 per cent are counting on CPP, a lottery win or an inheritance, instead of contributing to an RSP.


And here is more evidence!

In a 1999 survey by the Consumer Federation of America and financial services firm Primerica, 40% of Americans with incomes between $25,000 and $35,000 — and nearly one-half of respondents with an income of $15,000 to $25,000 — thought winning the lottery would give them their retirement nest egg. Overall, 27% of respondents said that their best chance to gain $500,000 in their lifetime is via a sweepstakes or lottery win, the survey said. – MSN Money

Putting all your eggs into one random, once-in-a-billion basket is not the smartest plan.

If you want to be sure that your future is secure, it’s pretty simple:

Just save the money for it, yourself.

Even $100/month can be enough if your expenses are low and you are being reasonable with your expectations.

The key is just to start saving and to not rely on anyone — government, family, friends, lottery winnings. All that can be considered a bonus, but not a plan.

But maybe what you thought would just sell for $10 on eBay might end up netting you a cool $66,100!

That smiling white-haired guy with the wine glass is Bob, a Navy doctor who put his watch for sale on eBay for $9.95. He got it cheap at a Navy Exchange fifty-two years ago. The final auction price: $66,100.

The reason isn’t that Bob and his watch got to party with Superman (yes, that’s Christoper Reeve). It’s a lot better than that.

Soon after posting it in eBay, the price skyrocketed to $30,000. After talking with his son, they found out that the watch was a collector’s item coveted by watch nutters all over the world: The Rolex Submariner Ref 5510, nicknamed the Bond Rolex because Sean Connery wore the same model in Dr. No, Goldfinger and Thunderball.

Your junk? Another person’s treasure.

About the Author

Just a girl trying to find a balance between being a Shopaholic and a Saver. I cleared $60,000 in 18 months earning $65,000 gross/year. Now I am self-employed, and you can read more about my story here, or visit my other blog: The Everyday Minimalist.