$1.6 billion reasons to be careful

Here’s a question? What has a 70% bankruptcy rate with 44% of people spending all the money within 5 years….that’s right “winning the lottery!” National Endowment for Financial Education

Now in the true confessions department, I admit to playing the Powerball or Mega Millions sometimes when it gets above $200 million. Candidly, I have found myself daydreaming of what I would do with the money if I won. I further justified my lottery purchasing by feeling good that my $4 investment in (2) $2 tickets, ultimately benefits education or charitable causes! Hey, at least it sounds good!!

It’s easy to see why people play because the largest Powerball ever won was $1.6 Billion, which was split 3-ways at $528.8. The largest Megamillions was $656 million for a lump sum pay-out of $474 million. You could do a lot of great things with all that money.

However, I quickly come back down to earth realizing that the odds of winning a jackpot lottery are 1 in 195,249,054, or to quote line from the movie Dumb and Dummier, “what you are saying is that I have a chance?” So with the population over 300 million, you basically have 2/3’s of the entire population competing against you. Lightening hitting me is greater!

Then, it’s starts to get very scary when you realize that 21% of people feel that the only way they can afford to retire is winning the lottery. Or that recent data has suggested that many more people are turning to the Lottery for their financial solutions  Consider this:

The average Lottery regular spends $206 annually, which at:

5%= $36,623.60

7%= $67,870.22

10%= $179,626.92

This is especially enlightening when you consider that roughly half of Americans have nothing saved for retirement, or a Forbes report claiming that roughly 2/3’s of people couldn’t put their hands of $500 for an emergency! So, rather than dropping money on Lottery tickets consistently, consider these sure-fire ways to financially get ahead:

  • Pay Down credit card debt, you get guaranteed savings on interest charges
  • Put money in a 401(k) retirement plan, especially if your employer matches
  • Add money to your mortgage payments against principal to save mortgage interest
  • Invest in a mutual fund or stock dividend reinvestment plan
  • Put the money aside for a rainy day or emergency
  • Donate it to charity and feel good!

Buying lottery tickets once awhile isn’t the end of the world unless you really need the money. It’s a game and it’s about playing for fun, not out of financial necessity. It’s doesn’t solve financial problems because according to the National Endowment for Financial Education, 70% of Lottery winners are right back to where they were 5 years later..that’s not financial security!


I’m really excited about our college planning special report. In this report, we talk about some things that are really important when planning for college such as having an open dialogue with your son or daughter, different types of federal loans that you could potentially participate in, tips for to apply to colleges successfully, and how to reduce costs. What are the different things you need to plan for in the way of finances that go well beyond just paying for college but are also part of the college experience. In this report we do a great job of laying the foundation so that you and your kids can plan for college successfully and make sure that everyone is on the same page.







AFLI’s Mission is empower people to take better control of their financial lives. We do this through educational workshops giving unbiased informative information and ongoing content and materials. According to various studies as many as 90 percent of American’s site financial stress as the number one concern in their lives. In our four building blocks to financial wellness program we focus on understanding your money, solving the insurance maze, investing 101, and retirement planning basics. Block one, understanding your money, focuses on building a sound financial foundation and discusses how to maximize lifetime earnings, the importance of budgeting, managing your debt, having an emergency cash fund, and the power of goal setting and savings. By partnering with companies, organizations, and municipalities, AFLI is committed to reducing financial stress and giving people the tools they need to feel good about making decisions with their money!



WATCH THE VIDEO: https://www.youtube.com/watch?v=WXIb0S44hag


To Request a Block 1 booklet for FREE, please email info@aflinstitute.org


Heart Attacks


Sometimes referred to as the “silent killer,” heart disease is officially the leading cause of death, claiming over 700,000 people a year.  A single EKG’s and MRI can cost over $5,000, hospital stays can average over $20,000, angiograms can be as much as $30,000, and a heart bypass can cost over $70,000. Drugs can be very expensive, not to mention rehabilitation and ongoing maintenance.  The CDC Foundation estimates that we spend over one billion dollars a day treating heart disease and strokes, with one out of every six healthcare dollars spent on heart care.  The U.S. spends more on healthcare than any other country, estimated by CNBC to total over $3.4 trillion dollars a year with an average of over $10,345 per person.


Over 155 million people are covered under an employer sponsored heath insurance plan.   However, the Kaiser Family Foundation reported that over 27 million Americans don’t have health insurance, with the Hispanic community making up the largest demographic without insurance.  The leading reason that people don’t have health coverage is that it was unaffordable, and with healthcare costs continue to increase at alarming rates, it will only become more prohibitive.


Health Insurance


When you consider some of these statistics, it easy to see why health insurance is very important.



According to The American Cancer Society, roughly 1.7 million of new cancer cases will be diagnosed in 2017.  Men have a 1-in-2 chance of being diagnosed with cancer in a lifetime, while women have a 1-in-3 chance.  Unfortunately, 20 to 25 percent of those cases can be fatal, making cancer the second-leading cause of death.  In America alone, over $100 billion is spent annually in the fight against cancer.  New cancer-treating drugs can cost over $100,000 a year, with one new drug in particular, Keytruda (in the fight against melanoma), running as much as $152,400 a year.  Additionally, cancer drugs are only part of the costs, because there are tests, procedures, possible hospitalization, on going care, drug treatments, specialists, etc.  These costs can spiral out of control.