9 Jul 2019
Wealth Potential
Is buying a lottery ticket an investment?

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