Wednesday, 7 May 2014

It's A Lottery

According to a recent survey commissioned by Liverpool Victoria Insurance, something like 3.6 million people in the UK are relying on winning the UK national lottery to fund their retirement. That’s a lot of people pinning their personal finance hopes on the concept of possibility (and an unlikely one at that) rather than building better probabilities for their future. 

Coincidentally, according to, 5% of lottery ticket buyers buy 51% of all tickets sold in the US. But we can't all be like Joan Ginther, a Texan woman that won four lottery jackpots.

Just as scary was the number of people who were hoping to finance their future on the chance of becoming famous. About 10% of the people in the Liverpool Victoria survey were sure that they would find the fame to bring the fortune. 

Pinning your hopes on unlikely outcomes aren’t a great way to manage your risk-reward picture, even if there are books that have strategies on how to win. While the solutions might seem a tad misplaced, the reality is there are a great deal of people that are too scared, confused or overly complacent to find suitable answers to the prevailing questions – what do I need for my retirement and how am I going to get there?  

Sometimes you just need a bit of nudging and guidance, whether it's from a good friend or even through a financial coach.

Regularly putting aside money in savings and investment plans may not have the whizz-bang excitement of seeing your six numbers come up on lottery night or winning the X Factor but, quite frankly, taking the boring route to securing your financial future is going to be a hell of a lot more reliable.

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