Could the lotto be my retirement plan?
This might seem like a crazy thing to write about, especially considering the fact that I advocate investing in long-term investments (such as my ETF investments) and I’m generally not a risk taker. But this is real life!
Someone told me that he’d rather play the lotto than invest because in his mind, the South African markets (in fact many global markets) are not dissimilar to gambling. This sparked an idea for me as I’m sure many readers feel the same.
My lotto experiment
I have decided to play R100 on a standard Lotto “quick pick” ticket at the beginning of each month and track my winnings (if any) and also compare this to having saved my money in a bank account and earned 5%. I’m only going to do this for 12 months as I don’t really feel that lucky and I don’t particularly advocate this as a good idea.
I’ve actually never played the lotto as I feel it’s a complete waste of money.
I started doing this in June and here are the results from the past 5 months:
The “5% in Bank” column is showing the interest I would earn for a full month so the final row is showing interest until the end of the month.
Thus, by the end of October I have lost R430 whereas had I just saved it in the bank I would’ve had a little over R506
Not a great lotto experiment so far!
I’ll keep updating this page with the latest results so that at the end of the year we’ll be able to see the full details.
The alluring factor of the lotto is that “unknown” excitement of “what if“.
The reality of the lotto is that only 1 in 50 gazillion gamillion will ever win big.
You can lose it all!
Please remember that you can really lose all your money in the lotto and that it is simply a game of chance. And your chances are slim!
If you really want to play lotto, budget a set amount and be prepared to lose it! This could be part of our entertainment budget.
Don’t however rely on ever winning anything.