Economics @ ITT

Skip the Lottery and Save for Retirement?

Posted in economics, microeconomics by ittecon on October 20, 2011

 One study in Texas found that a person without a college degree spent an average of $250 per year purchasing lottery tickets. If that same person were to start an IRA or other retirement vehicle that earned a conservative average 4 percent annual return and they contributed $250 per year for 30 years, they would have $15,392 once they reached retirement age. If they did the same thing for 40 years, that number would jump to more than $25,000. If it were possible to know the rate of future inflation, the number would be much higher.

Is the lottery ever worth your money? – Money – TODAY.com.

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