9 Jul 2019
Wealth Potential
Is buying a lottery ticket an investment?
By Emily Matthews | Financial Advisor at Future Key Financial

My dad is an avid lottery ticket buyer. He spends about $200 a month on lottery tickets and has done so since well before I was born. I think his biggest win was about $1,000 once. In his mind, that seemed like a pretty good return. Spending $30 on a ticket and winning $1,000 back.

But over 30 years at $200 per month, my dad has spent approximately $72,000 on lottery tickets.

Buying a lottery ticket isn’t an investment.

Rather, if my dad invested that $200 per month over 30-years into a diversified, balanced investment portfolio earning 5% per annum on average (net of fees), he would have approximately $167,345 today.

If he invested that money into a diversified high growth portfolio earning 8% per annum on average (net of fees), he could have approximately $300,259 today.

ODDS OF WINNING AUSTRALIAN JACKPOTS

Monday Lotto                        1 : 8,145,060
Oz Lotto                                1 : 45,379,620
Wednesday Lotto                  1 : 8,145,060
Powerball (Australia)            1 : 76,676,600
Saturday Lotto                      1 : 8,145,060

At Future Key Financial, we can help you kick start your wealth creation journey with as little as $500. If you would like to know more, contact us on 07 3547 9100 or unlock@futurekeyfinancial.com.au

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Daniel Mathers is an authorised representative (1238174) of Hunter Green Pty Ltd (AFSL 225962). Emily Matthews is an authorised representative (1261200) of Hunter Green Pty Ltd (AFSL 225962). Future Key Financial Pty Ltd ACN 608 953 840 is a Corporate Authorised Representative (1238170) of Hunter Green Pty Ltd (AFSL 225962). The information on this website contains general information and does not take into account your personal objectives, financial situation or needs. We recommend that you seek for specific financial advice if you require advice that takes into account your personal circumstances.