Winning Life’s Lottery Does Not Require A Powerball Or Mega-Millions Ticket

There’s been a lot of hoopla about recent Mega-Million jackpots topping $1 billion. It must have been nice for the odds-defying winner.

The lottery is the fairest tax of all. It is voluntary, it is not levied; you are not forced to buy a ticket. It is an adult choice. I’ve never heard anyone complain about having to pay their lottery tax.

Winning the lottery is NOT how to accumulate wealth and provide for retirement. Winning is a fantasy dream – for entertainment purposes only!

Fantasy??

Think it’s not a fantasy? Let’s peek behind the curtain. AS.com provides the odds:

“The odds of winning the Powerball jackpot are 1 in 292,201,338, so you’re more likely to win at a slot machine than the grand prize. Could anything be less likely to happen?

Yes, as turns out! The Mega Millions lottery cashes in with even slimmer odds – you’ve got to have some serious four-leaf clover action going on to beat the 302,575,350 to 1 odds there.”

The US Census Bureau tells us:

“In 2020, the U.S. Census Bureau counted 331.4 million people living in the United States; more than three-quarters (77.9%) or 258.3 million were adults, 18 years or older.”

If every adult in the US bought one lottery ticket, 50 million numbers would still remain unsold.

Subscriber Charles C. shared a great analogy, showing how much winning the lottery is pure fantasy.

When Jo and I lived in Austin, TX we enjoyed the University of Texas football games. The Texas Memorial Stadium holds 100,321 people, and it was packed every time we went.

Charles suggested:

“…. Envision everyone in the stadium having one chance at winning the lottery; but you’re not even close – yet. Then imagine 3,000 stadiums packed to the brim, with each person holding one ticket with a different number.

They’re going to pull one winner. Look around. Do you really think you might win!?”

I let my mind wander a bit. For the sake of example, a net worth of $50 million would put you in the ultra-wealthy category. In 2020, there were a total of 89,510 people in the US with a net worth of at least $50 million.

How big a lottery would you have to win to end up with $50 million after taxes? Omni Calculator provides a neat, fun Powerball calculator. It estimates the lump sum payout, then deducts the federal and state taxes based on your filing status and residence. Next time someone asks “How much would you walk away with?” – dazzle them with this!

For us to instantly join the $50 million club, we would have to beat 292 million to 1 odds and win a $166 million Powerball.

If you want to enter the $50 million club, you have an 89,500 better chance of earning the money than you do winning the Powerball.

Back to Reality

For most, earning, and accumulating wealth is not easy, particularly in today’s world. The political class, combined with our educational system, present major obstacles. We will discuss them independently.

“Vote for me. I’ll use my office to take another American’s money and give it to you.” — Walter E. Williams

I abhor politicians who refer to “winning life’s lottery” as the excuse to confiscate our hard-earned money and redistribute it in the name of “fairness”. Nothing fair about it! Being rich or poor is not a game of chance; but rather a result of life choices we make. Ultra-wealthy people can go bankrupt, and those raised in poverty can become ultra-wealthy.

Portraying the poor as “victims” and the wealthy as “lucky” does nothing but help power-hungry politicians get elected. Politicians’ only concern about the poor or wealthy is what the poor and wealthy can do for them. Nothing-new here. The ruling class has been this way for thousands of years.

Our tax system is the tip of the iceberg. It’s the hidden tax, inflation, that is destroying the wealth of the nation, rich and poor alike. Some timely quotes make the point: (Emphasis mine)

“By a continuous process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of its citizens.” — John Maynard Keynes

“Inflation-that’s the price we pay for those government benefits everybody thought were free.” — Ronald Reagan

“We can guarantee cash benefits as far out and at whatever size you like, but we cannot guarantee their purchasing power.” — Alan Greenspan

“The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. Deficit spending is simply a scheme for the hidden confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.” — Alan Greenspan

Mr. Greenspan was a balanced budget, gold standard advocate until he became the Chairman of the Federal Reserve. Once he got the job; he became one of the biggest enablers of deficit spending we have ever seen.

Controlling our own destiny

“Each player must accept the cards life deals him or her: but once they are in hand, he or she alone must decide how to play the cards in order to win the game.” — Voltaire

There is little we can do to control inflation or ridiculous government spending. Those are the cards we’re dealt. However difficult it may seem; we can still play the game and accumulate enough wealth to enjoy life without constantly having to worry about money.

“I am not a product of my circumstances. I am a product of my decisions.” — Stephen Covey

Our individual choices are what impact our ability to accumulate wealth. The wealthy people I know didn’t leave their future to chance; they know better.

Many times, I’m asked what I feel is the single most important aspect in building a good nest egg. It’s pretty simple, get out of debt and stay that way.

“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” — Norm Franz

Debt is slavery, plain and simple.

To accumulate wealth, earn more than you spend, get out of debt, and invest what’s left in assets that compound and grow.

Accumulating wealth isn’t winning the lottery; happening overnight and by chance. It requires hard work, mental discipline and continuous financial education.

WORRIED ABOUT INFLATION? 2023 is shaping up to be the most expensive year ever. The Fed’s response is too little, too late and prices continue to soar! How do investors protect the value of their nest egg? How do retirees pay their skyrocketing living costs? Luckily there’s a proven way for you to stay ahead of inflation, just like 20,000+ investors are doing right now… Here’s how you can be one of them. Click HERE for more information.

The Educators Failed

Let’s start with student loans and the implied lessons for young people. “Borrow now, go into debt and don’t worry about it.”

When they finally get out of college, many are in debt up to their eyeballs and it takes them decades to get to any kind of positive net worth. Government bailouts just make things worse.

What happened to real Economics? The US Debt Clock provides the sad reality:

• Total US Debt, tops $31 trillion, over $94,000 per taxpayer

• Total unfunded US liabilities – $173 trillion, $519,000 per citizen

• Debt to GDP ratio increased from 59.56% in 2000 to 121.50% today

Young people are taught, deficits don’t matter! The hell they don’t! Their generation is on the hook.

If our education system did its job, the public would be revolting over public debt and the free-spending politicos would have been sent packing long ago.

I recall a distant family member, married with a couple of kids, who went back to college full-time. They were living off the government. They milked the system: two cars, Starbucks, iPhones, tattoos and all. I asked about getting a part-time job. With a hateful glare, they responded, “Oh no, working and going to school would be too stressful.”

So much for educators preparing young folks for dealing with the realities of the adult world.

Perspective

Dare to be different. Regardless of your age or finances, you can learn to live below your means and get out of debt. Charles C. shared another quote:

“What you thought before has led to every choice you have made, and this adds up to you at this moment. If you want to change who you are physically, mentally, spiritually, you will have to change what you think.” — author unknown

The slave masters have trained much of society to think in terms of “monthly payments.” Change your thinking, when something is paid off, don’t go buy something else because there’s a little money left over. You don’t need a new iPhone just because you paid one off.

The slave masters look to “Monthly payments” as income. That is what wealth, invested wisely can provide.

I used $50 million as an easy example. One does not need to win a huge lottery to become wealthy. Zippia.com tells us:

• There are about 22 million millionaires in the U.S.

• 8.8 % of U.S. adults are millionaires.

The odds of accumulating enough wealth to retire comfortably are not insurmountable, for those willing to live below their means and invest wisely.

I write a lot about investing, however, the first step is changing your mindset, daring to be different…getting out of debt and accumulating capital to invest for true financial freedom.

A little help means a lot! Eight years ago, I vowed to keep our newsletter FREE! I plan to keep my promise. It’s an expensive, time-consuming hobby, but also a labor of love. Recently a reader asked why I didn’t charge for our weekly letter. I explained that I want it available for everyone. Some readers may be on limited budgets and may benefit the most from our advice. He pressed on with his questions. How much does your letter cost? How many readers do you have? He concluded, “If each reader paid $10/year, you would be fine. I responded, “Yes, $10 per reader would work, BUT I am committed to keeping it FREE even if it costs me money.” Several readers suggested we add a donations button to help us offset the cost of our publication. It helps when people pitch in and we certainly appreciate it. If readers want to donate, it sure helps out, however, it’s strictly voluntary – no pressure – no hassle! Click the DONATE button below if you’d like to help. You do not have to sign up for PayPal to use your credit card. And thank you all!

On The Lighter Side

A couple weeks ago, I got a text from Chuck Butler. He was in the hospital and had a stroke. While it was pretty scary, they sent him home the next day and he is feeling great, with no apparent side effects. Fortunately, his wife immediately recognized what was happening, called 911, they arrived quickly, and got him to the hospital.

Had a great conversation with him last weekend and he sounded great. He said it took two days for him to get through emails from readers wishing him well. While the stroke was bad luck, how lucky was he that his wife was there and quickly got him the medical attention he needed?

Glad to see him back in the saddle, he still has much to contribute for all of us.

Last weekend the Powerball rolled over to $613 Million. I ran the numbers just for fun. Good grief, no wonder they sell millions of tickets. Fantasy dream at best, it’s fun to dream about what you would do if you won….

Of course, the big winner is the government. They get 50% off the top and tax the other half.

Quote of the Week…

“Our greatest glory is not in never falling, but in rising every time we fall.”
— Confucius

“Luck is what happens when preparation meets opportunity.”
— Seneca

And Finally…

Subscriber “MO, Showme” shared some clever definitions:

• CHICKENS – The only animal you eat before they are born and after they are dead.

• COMMITTEE – A body that keeps minutes and wastes hours.

• EGOTIST – Someone who is usually me-deep in conversation.

• SECRET – A story you tell to one person at a time.

• WRINKLES – Something other people have…similar to my character lines.

And my favorite:

• OLD – An older woman quietly confided to her friend that she was having an affair. Her friend turned and asked, “Are you having it catered?”
  …and that, my friend, is the definition of ‘OLD’!!!

Until next time…

Dennis Miller

“Economic independence is the foundation of the only sort of freedom worth a damn.” – H. L. Mencken

 

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