What Are The Odds?

The following was published as a guest column post in the Memphis Daily News on January 13, 2016.

Written by:  Jack Dewald  | President of Agency Services, Inc.

I am writing this article on the day that the Powerball lottery jackpot is expected to pay out $1.3 Billion to some lucky fool – I mean lucky winner.

I’m always amazed at the long lines and hype surrounding these potential payouts from the lottery. It seems Americans just can’t pass up the possibility that “I might win it.”  So they stand in line, buy a ticket (or several) and hope.

I read that there is a better statistical chance of dying from being hit on the head by a falling coconut (1 in 250 million) than there is in winning the lottery (1 in 300 million). Heck – there’s only a 1 in 112 million chance of a vending machine falling on you and killing you, and 1 in 12 million chance of becoming an astronaut.

Here’s one thing I know for certain – there is a 100% chance you will die. I know that’s tough talk, but when logical people make the seemingly illogical choice of believing that the lottery just might pay off for them, then perhaps they need to be confronted with the true reality – that when you die, your loved ones who count on you will need the income you earn each day to be replaced.

When you buy that lottery ticket – all that is left for you to do is hope and keep your fingers crossed that you will that 1 in 300 million people that wins. There’s really nothing else you can do – no amount of planning or scheming can help you in any way.

When it comes to protecting those you love, there’s a lot you can do. Hoping and keeping your fingers crossed is certainly one way to manage your family’s financial future. But I doubt that your spouse and kids would agree that “playing the lottery” with their future is the best way to go.

A more sensible way to protect those you love is to talk to your financial advisor about life insurance and how it can protect your family’s future.

In just a few weeks, Valentine’s Day will be upon us. February is a great month to “INSURE YOUR LOVE”.

I can think of no better way to show someone you love them than to take the real step involved in planning for their financial future by buying life insurance.   For the cost of a few lottery tickets per week, a significant amount of life insurance can be acquired.  Which is the better investment?  Which has the best odds of “paying off?”

Or — you can continue to play the lottery.  It’s fun, it’s exciting — and dare I say it — it’s a very dangerous way to express how you feel about your loved ones.